Tips for Investing in a Vacation Rental in California
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Many Americans would love to purchase a vacation rental, but feel that it’s just not in reach with their budget. It can be costly to invest in a vacation property, but if you know how to research and prepare, you can find the right vacation home rental for your needs without laying out a ton of money. Learning all you can about the area will help; in California, certain neighborhoods are ideal for a vacation home but are much more pricey than in other towns. You’ll want to do some homework to figure out what your vacancy rate will be.
Of course, as with any property, it’s crucial to make sure you understand the total cost and all the things you’ll be responsible for in the course of a year. If the home is more than a few years old, you might have to consider unforeseen issues, such as roof repairs or replacing the hot water heater, and these updates can be expensive if you’re not prepared. Creating a home repair fund will help you stay on top of these issues without stress.
Here are some things to consider when making such an investment:
Research price
California is an ideal state for a vacation home; with lovely weather, breathtaking views and tons of activities for every age, it’s a great place to relax and enjoy a vacation. However, Cali also tends to be one of the most expensive spots for property, and you want to make sure you’ll be able to recoup your investment. It’s imperative to research the cost of homes in the area you’re interested in. In Beverly Hills, for example, the average home sale price has been $10.821M over the past month.
Location is everything
Figuring out where you want to purchase a California vacation rental home ican be tricky. You want to be able to attract renters by offering a spot that’s close to events, shopping, restaurants, and beaches, but you also want to ensure you won’t have a ton of competition. This will require some reading on your part; look online to get an idea of what different cities have to offer and figure out how best to use those attractions to your advantage. If you're looking in Los Angeles, for example, anywhere near a beach can be a major plus, and Turnkey notes a rental in areas like family-friendly Santa Monica are less cost-prohibitive. You also can't go wrong beach-wise if you keep going south from Playa Del Ray down to Redondo Beach. Of course, the Beverly Hills and Hollywood Hills areas can be prime locations if you want to play up the movie star factor. With so many unique neighborhoods and attractions, Los Angeles has plenty to offer.
Keep safety in mind
Owning a home in California can be a joy, but it can also be a challenge. Property owners in the state have earthquakes, landslides, and wildfires to worry about on top of security, so it’s crucial to make sure you understand the risks in the area and prepare for them. Of course, you’ll need to insure the home, but you can also take steps to keep it safe in the event of a natural disaster. Learn how to protect your property and how to ensure your guests will be safe during their stay.
Decide how often you want to rent
Some rental property owners only rent out to guests for part of the year, as in some cases the owners can use the home themselves for up to two weeks and still enjoy the tax benefits. However, you’ll need to decide how often you want to rent your vacation home based on the availability of surrounding attractions and events. Since many cities in California have the benefit of similar temperatures and sunshine for much of the year, owning in these areas will give you an advantage if you want to book the house year-round.
Owning a vacation rental in California may sound out of reach, but with some careful planning, it’s actually very attainable. One of the keys to making it a success is being prepared, but you should also make research a priority so that you can make informed decisions.
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