Summer rental properties haven’t always been the first type of investment property that financial advisers have recommended, but we likely will start to see a change in that. The simple fact of the matter is that the downsides to summer rental property have effectively been erased by technology. In short, the age of the internet, mobile apps, remote home systems and startup companies specializing in bookings have made summer rental properties a sound investment choice for the first time in ages.
This is the Age of Ease for Summer Rental Property
The major problem with summer rental properties has always been the distance between the owner and the property. In the past, you had two main choices: either you handled the rental property yourself or paid a property manager to do it. Of course, the first isn’t really an investment then, but more of a business you are running (akin to a resort manager). The second choice isn’t that much better, leaving your investment in the hands of someone else, halfway around the globe — who you have to put on the payroll, nonetheless!
But now, the emergence of the super property manager — that is, the capability to control your investment property from anywhere on the globe — gives you the peace of mind you need to sleep at night wherever you are, knowing your investment is being properly handled. For example, you can remotely open doors and windows while shutting electricity on and off. You can control the air conditioning in Venice Beach from Moscow, Russia if you’d like — and all from your smart phone.
Entrance to Rental Cabin Property by Larry Lamsa, on Flickr. This work is licensed under a Creative Commons Attribution 4.0 International License.
Automated Technology and Summer Rental Property
Apps have completely changed the way that property management is approached. You can keep a virtual eye on your investment with streaming cameras that show you exactly what is going on in real time. You can be the virtual property manager from the comfort of your own home without having to keep anyone on the payroll.
Additionally, the problem of taking reservations and payments has all been automated through apps and programs available for your PC or smart phone. And as for marketing, you don’t even have to get word out there so much anymore — there are startups that specialize in finding vacation spots for people and for a fee (to the vacationers, not the owners), they will book the trips, handle all the reservations and so on and so forth. These are “directory sites” and they are run by big names such as TripAdvisor (FlipKey).
These companies generate unlimited leads and inquiries on their own, or you can pay them an annual fee to get more of the targeted traffic and marketing that you need to keep summer rental properties fully booked and highly profitable.
But Why are Summer Rentals Always Going to Generate ROI?
With all of the reasons that you have for investing in summer rental property, let’s take a step back for a second and see what reasons are driving the customers to these rental properties. After all, there are always two sides to the business — yours and the customers. So, what is making them come to you (thus making it more sound to invest in summer rental properties)?
• People like to be “in the know.” Rental properties let them do this as in, “I found this great little cottage on the beach in Sarasota that no one knows about – I’ll get you their number!” In short, it’s cool — a lot cooler than staying at the Holiday Inn by the airport!
• Summer rental properties are homier and more cost-effective. Instead of booking the whole upper balcony at the Red Roof Inn, your next family reunion gets to be on lake cottages with no one else around.
• Summer rental properties give you more of the local experience, taking some of the kitchy touristy feeling out of family vacations. They let people get into the vibe of the locale, cooking with local foods from the local market and living right alongside the locals.
The point is that overall, rental properties make for a better customer experience, providing unique memories that nobody can deny. This is what rentals have over hotels — always have, always will. It’s like camping out, but in someone else’s home.
The Tax Benefits of Owning Summer Rental Property
Of course, one of the biggest benefits of all when it comes to owning a summer rental property is the fact that you get to deduct the expenses from owning the rental property. This can provide huge writeoffs for your federal income taxes, including the real estate taxes, the expenses of owning the property, homeowner dues, management fees, etc.
The bottom line is that there has never been a better time to invest in a summer rental property than right now.
This article is courtesy of James Andrews from http://www.lbirealty.com/
