Beach House: 4 Things to Think About Before Purchasing For Use as a Rental
While beach house rentals are very popular, and Airbnb makes it seem easy, especially during the beach “season,” there are things you should know before shopping the area. Here are four of them:
1. Choose the Right Location: Is the beach house property in a place that tourists want to stay or where YOU want to stay. It should be somewhere people vacation year-round and the immediate area should offer more than just a beautiful beach. Are there other attractions in the area? Retail stores, restaurants and supplies? What is the rental income potential?
2. Know the Costs of Owning a Beach House: You’ll want to take everything in to consideration when calculating those costs of ownership. To start with, there’s the mortgage (if applicable) along with property taxes, insurance(s), utilities, internet and WiFi, maintenance and repairs, taxes, and landscaping maintenance. In addition you’ll likely need funds for marketing and property management and HOA fees or hospitality taxes as applicable. And don’t forget furnishings and cleaning.
3. Know the Local Laws and Regulations: Every city and state has laws and regulations that govern the vacation rental market. Don’t get caught off-guard by a law that puts a kink in your plans; for example, limits on how long guests can stay and if you need a business license to operate a beach house rental.
4. Have a Marketing Plan: to have a successful investment, potential renters need to know the property exists and is available. Consider hiring a management company or local real estate agent if you aren’t prepared and knowledgeable about these rules and procedures.
Buyer Insights by Brad Brown
TowneBank Mortgage – Your Hometown Mortgage Lender
NMLS ID 453391
Mortgage Loan Officer
1022 Ashes Drive
Wilmington, NC 28405
Cell: 910.231.1411
Email: Brad.Brown@townebankmortgage.com