Owning a vacation home is great for so many reasons. Not only does it give you a home away from home in a dream destination, it also has the potential to earn you money if you rent it out when it’s vacant. Given that there are a lot of perks, it might seem like an easy investment. However, there are a lot of things to consider when buying a vacation rental home in California. Below, learn what steps you’ll need to take to get the most out of your investment. 

Research Popular Destinations 

It might seem obvious, but the property you choose should be in an area that appeals to tourists or other short-term renters. Many popular California attractions are currently closed due to COVID-19, but in more “normal” circumstances, people tend to gravitate toward vacation rentals that are situated close to downtown areas and other hotspots. When choosing a vacation rental, keep in mind that popular attractions will open back up again when it’s safe. Therefore, choosing a popular California destination can earn you more income from your rental, even now that dine-in restaurants, stores, and other places are reopening. 

Scope Out the Local Market

Doing a comparative analysis of the local real estate market is the first thing you should do after picking a destination. You need to know typical home prices, as well as the average number of days homes spend on the market. 

In San Diego, for example, the average sale price was $1.03 million over the last month, and homes only spent an average of 15 days on the market. Not only that, most homes got multiple offers. In competitive markets like this, you’ll want to come prepared. You’ll also need to figure out your budget to determine whether an area like San Ramon is out of your price range. A real estate agent like Lenora Lostaunau can help you make these decisions as well as help you look for the perfect home and location.

Check Local Regulations 

According to Host Compliance, short-term rentals are a controversial issue for several reasons. While they may boost the economy by bringing more customers to local establishments, they can impact residential neighborhoods and create tax issues for cities. 

Before getting ahead of yourself and falling in love with a vacation home, you have to check the local laws. Because they’re controversial, many towns and homeowners associations (HOAs) are beginning to crack down on vacation rentals, including long-term and short-term rentals. If you plan on using the property for rental purposes, make sure the law allows it and that you follow any rules for taxes and licenses. 

Know the Features Renters Want 

Even if you pick a home in a great destination, it doesn’t mean that it’ll instantly draw renters. It’s important that you know what renters are looking for in a property. You can make your rental stand out from the rest by having things like Wi-Fi, a home security system, and other perks.  

Stocking the home with kitchen, bedroom, and bathroom essentials will make it more appealing to renters as well. 

Make a Plan for Management 

One challenge for vacation property owners is staying on top of cleaning and maintenance. With a high turnover of renters, there will be a lot of traffic in and out of your property. It can be a lot of work to keep the place clean between guests, while also handling normal wear and tear. 

If you live close to your property, you may be able to manage the property yourself. However, it’s often necessary to hire a rental property manager to handle this side of the business for you. Keep in mind that property managers will take a cut of your profit in return for their services, so it’s something you’ll have to account for when calculating how much you’ll truly earn from your investment. 

Owning a vacation rental in California comes with many benefits, but only if you do your research to find the perfect home. As the owner of a rental property, it’s also important to stock the home with things that draw in renters, and to have a plan for keeping the property in the best shape possible at all times.

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Article Provided by: Henry Moore henry@fitwelltraveler.com