There is nothing quite like spending time with friends and family at a vacation rental property. In fact, there is a chance that some of you are reading this right now sipping coffee overlooking your favorite morning spot. As much as you may relish your time spent there it doesn’t necessarily mean you should make it part of your portfolio.
There is a big difference between a vacation rental and one in your local market. A vacation rental can have tremendous upside, but it can also be a financial burden in the wrong area and with poor management. Spending a few days, a couple weeks a year is much different than being a landlord hundreds of miles from home. Like everything else in real estate, you should evaluate the situation
prior to diving head first into it. Here are a few pros and cons with a vacation rental property.
Like any other property you should always let the numbers be your guide. It is important to always consider the low demand months with the property before making a decision. A popular summer destination may be a ghost town during the winter leaving your property vacant. Whatever you do never let the intoxication of a beautiful vacation prompt you to act irrationally.