Looking for a Vacation Home? Everything to Know About Renting Property
What are Vacation Rental Properties?
Vacation rental properties are probably the type of properties that come to most people’s minds when they think about investing in real estate. Unlike other residential properties, vacation rentals are considered short-term rentals, meaning that tenants can’t rent them for more than six months at one time. A good example of a vacation rental is a beach house, although vacation rentals don’t necessarily have to be on or near a beach.
Laws Regarding Vacation Rentals
Because vacation rentals are short-term rentals, not every place in the world allows them. This is because they’re not considered residential rentals because tenants renting traditional residential properties usually plan on living on that property for a significant amount of time.
In the United States, most states allow short-term rentals or vacation rentals, but there are certain cities that have restrictions when it comes to these types of rentals. Here are some examples of cities in the U.S. with strict short-term rental laws:
- Calabasas, California states that it’s prohibited to list a property for rent for less than 30 days.
- Honolulu, Hawaii states that it’s illegal for a property owner to list a property for rent for less than 30 days.
- Las Vegas requires its rental property owners to have a business license and properties can’t be rented for special events.
- New Orleans rental property owners are required to get a short-term rental permit before they’re able to rent out any type of property. Also, short-term rentals are banned in certain areas.
- New York City states that it’s illegal to list a property for rent for less than 30 days unless the property owner is on-site while the property is being rented.
- San Francisco, California states that property owners can’t rent out property more than 90 days out of the year at any time.
Before investing in a vacation rental, make sure that you understand what is and is not allowed to avoid any fines or other penalties.
Best Locations for Vacation Rentals
You’ve probably already guessed that the best location for a vacation rental property is a place that’s a popular travel destination. While this is true, many of the cities with restrictions listed above are some of the most visited places in the United States. This is why it’s important to not only research what would be a good location for your vacation rental but also if it’s allowed.
One of the most popular places where people purchase vacation rentals is the state of Florida, where there’s plenty of beaches and amusement parks that draw in people from all over the world. Though Florida’s short-term rental laws aren’t as strict as other places, there may still be some restrictions to be aware of.
Maintaining Vacation Rentals
When you purchase a vacation rental, you automatically become the landlord. This means that it’s your responsibility to ensure that the property is cleaned and well-maintained, which includes seeing that any broken appliances or amenities are repaired. It’s also important to thoroughly inspect and clean your property between tenants.
This can be a very difficult job, but it is possible to hire a property management company and/or cleaning company to help you with these tasks. Just make sure that you’ve chosen a reputable company to represent you.
Where to List/Look for Vacation Rentals
There are plenty of websites where you can list and/or find properties for rent. The two most popular sites are probably Vrbo and Airbnb, although there are other sites that give you more information about vacation rentals in general. While it’s okay to list your vacation rental across multiple platforms, be sure to use some type of channel manager that syncs all of the information from each of the sites. That way, your property won’t get booked by more than one guest at one time for a specific time.
If you’re interested in investing in a vacation rental, make sure that you do all of the research necessary. This will ensure that you’ll have the most success from your investment.
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