Anyone own a vacation rental property? TME

I've realized that I think I can afford a vacation rental. I live in Denver and am looking at getting into a place near one of the resorts, I'm pretty familiar with a couple of areas. I want to be a full owner (no time share/ partial ownership BS) and rent it out during the summer and winter and use it for myself whenever it's convenient.  I think renting it out shouldn't be a problem, gotta do some more research ... Just now scratching the surface so there's still lots of details to flush out...

 

Anyway ... Just looking for experience you all may have, pro's and con's etc ...  use a management company? Air bnb it?  Any cost pitfalls? Tax implications? Give me the good the bad and the ugly. 

Use a management company.  See how much the place made the previous years.

I'm thinking about doing the same thing at the beach but there's too much flooding and storms for my taste.  I would use a management company because there'd be no way I could take care of the turnover.

How far away from your residence? If within a few hours make sure you're comfortable driving that distance because you'll be doing it often. It's going to take up a lot of you're time until it's off the ground but once you get someone to look after it for you it should go relatively well provided the management company are worth their salt. 

I own rentals but they're long term leases, haven't done short term yet although I'm thinking about it as well. It can be an amazing investment if it's in a good area but it won't be roses all the time, it'll need a lot of money and upkeep but if you think you can handle it jump in. 

Palmala Handerson -

How far away from your residence? If within a few hours make sure you're comfortable driving that distance because you'll be doing it often. It's going to take up a lot of you're time until it's off the ground but once you get someone to look after it for you it should go relatively well provided the management company are worth their salt. 

I own rentals but they're long term leases, haven't done short term yet although I'm thinking about it as well. It can be an amazing investment if it's in a good area but it won't be roses all the time, it'll need a lot of money and upkeep but if you think you can handle it jump in. 

I'm looking within 2 hours. Probably just do a condo instead of a house. That's pretty common out here. 

I assume it'll be terrifying for about six months until things get settled. 

My friend owns some cabins, I'll tell you what he does....Nowadays the cleaning fee is between 100-200 dollars. He found some cleaning people that work on other units under the flag of whatever company. He asked them what they make for cleaning each cabin , and their answer was $50. He offered them a side job of cleaning his rental units and he would pay them $100 for each unit, they were happy to do it. He rents his units by owner and saves the huge management fees also.

In 

An old g/f of mine's parents had a place in Hot Springs, Arkansas they used to rent out.

They said one of the big issues is that every year or so, they'd have to replace the silverware, cups, plates, etc. because renters would either break something or take it, and eventually it would add up to where shit needed to be replaced.

They also said people would take the TP and paper towels, so they'd build that into the rental cost.

I have 2 condos on golf course near a beach in SC.  I used vrbo to rent them and it's killing it.  Depending on how far away you are a good property management company can be helpful.  I used one for years,  but after getting a good list of plumbers repair guys ect we started doing it ourselves.

we're about 4 hours away and use each place a couple times as year.  

 

Document when you are there on vacation vs work.  Always fix something every trip because legally you're only allowed to use for a certain number number days a year.

 

 

In!!

cruedi -

I have 2 condos on golf course near a beach in SC.  I used vrbo to rent them and it's killing it.  Depending on how far away you are a good property management company can be helpful.  I used one for years,  but after getting a good list of plumbers repair guys ect we started doing it ourselves.

we're about 4 hours away and use each place a couple times as year.  

 

Document when you are there on vacation vs work.  Always fix something every trip because legally you're only allowed to use for a certain number number days a year.

 

 

What is vrbo? 

What % do they take?

How many weeks do you have it rented& what is the amount of weeks you need to rent it to make a profit?

do you keep the mortgages high to write off the interest at tax time