Hanging on to Real Estate —10 Ways Vacation Rentals Give Property Owners Staying Power
Someone once said, “The definition of insanity is doing the same thing over and over again and expecting different results,” and traditional leasing may actually fall into that category. As investment property owners, in a competitive rental market, how many ads do we run over and over again, how many mortgage payments do we cover over and over again, and how many repairs/improvements do we make, over and over again, and then, here we are again, with no tenant, or worse yet, an undesirable tenant.
While we are doing all this we miss yet another two months of rental income. If this isn’t the definition of insanity, I am not sure what would qualify.
Fortunately, I saw the insanity and have started doing things in a more creative way, and it works well, I have been marketing vacation rentals for four years, with surprising success. There are many reasons that vacation rentals can give you staying power and great cash flow to boot.
Number 1: Vacation Rentals attract people on vacation! Why is that significant? People on vacation are successful people at a happy time in their life—vacation. Therefore, they not destructive people, and more often than not, are pleasant people.
Number 2: Vacation Rentals do not collect rent, but accept credit cards for reservations. Vacation Rentals fall under hospitality law. People on vacation will go home elsewhere, and the need to “toss someone out” will not be necessary. That means that eviction process does not apply.
Number 3: Vacation Rentals are booked in advance, and paid on a credit card. There are no rental collection issues! The reservations contract operates under hospitality law.
