Are you someone who finds themselves always traveling during the holiday season? Whether that season means Christmas, Thanksgiving or any other time of year, you may be missing out on a major financial opportunity if you are not renting out your home while you are away.
Before you hold up a hand and say, “no way” at the thought of vacating your home during an extended holiday visit elsewhere, think about what it might mean. There are, quite accurately, millions of people traveling, booking hotels and staying in somewhat unwelcoming settings during their holidays. The option for booking a private home is a wildly popular concept that is supported by dedicated websites. You can use what you know about real estate in your area to get a great rate for renting your home, and this can underwrite your travels or even your future investment plans.
A Single Example
If your home is in one of the major metropolitan areas, such as North Dallas or Plano, TX, you have thousands of potential customers eager to rent a cozy and private home for their holiday getaway. You can take a bit of time to calculate the best rate for the market, and for your expenses, and enjoy a nice profit.
Keep in mind that this is unlike a dedicated, furnished rental. This is your home, and as such, you’ll want to have a few contingency plans for such issues as family heirlooms or costly valuables that might be lost or damaged when renting to strangers. You are not actually a certain victim to any such catastrophes, but when you gauge the different issues that will help you choose the right pricing, it is something to consider.
For example, installing a secure and dead-bolt locked room for your special belongings, or paying rental on a storage facility is a cost to add to the mix. Also keep in mind that most travelers are not conscientious about energy consumption and may dial up the heating or air conditioning, use multiple devices and gadgets, leave lights on at all times and not feel worried about the expense. Calculate for the worst case scenario.
If you, yourself, are not traveling but simply monetizing your property’s rental value, you have to pay for an alternative accommodation for yourself and/or family and pets. Here too, you have to calculate costs for pet accommodations if you are traveling but not bringing them with you. A kennel or a pet sitter is also an expense you must calculate, and seek to pass on to the renters if possible.
Also, keep in mind that someone renting your home is going to be doing so as a “turnkey” property. They won’t bring linens or kitchen gear. This can be a costly venture if you don’t also calculate the costs of the added wear and tear on your household items or the costs for purchasing replacements to be used whenever renting.
Once you have looked online at the other homes available for rental in your area, the prices charged and the amenities included, you can then add in the extras and figure out if it is a viable choice for you. For most homeowners, it is a great concept if they intend to implement it on a regular basis.
Points to Consider
Do keep in mind that there is some disruption to your lifestyle if you are going to make this decision. You’ll want to consider your valuables and pets, you also have to consider items that cannot be removed but which may be liabilities. High priced entertainment systems, large antiques, and even wall art are costly things, consider them as you prepare your home for renters.
More significantly, be sure your insurance allows for a rental situation and replacement for any damages. If you are in a housing authority or cooperative, be sure your neighborhood allows these arrangements and what sort of laws apply.
You can make a fantastic profit by renting out a home during any holiday season. If your town does an amazing Fourth of July celebration a winter wonderland event or any sort of seasonal activity that draws lots of travelers, why not take in some profits?