Vacation rentals now come in all shapes and sizes thanks to sites like VRBO and HomeAway. People are getting smart and renting out all sorts of different spaces such as a loft, guest house, tree house, bedroom, garage apartment, completed basement and many other accommodation spaces.
However, if you enjoy your privacy and want the highest safety for your family and primary residence then renting out a space in your home is not an option. Finding just the right vacation rental property can be a challenge, especially if you have never invested in one before. It takes a trained eye to identify a property that will produce a healthy vacation rental income.
Vacation rentals should have the following characteristics;
- Location with Leisure Activities Near
- Vacation Amenities
- Secure Guest Entry & Exit
- Clean & Functioning Appliances
- Clean & Comfortable Bedding
- Functioning Utilities
- Clean & Safe Grounds
The biggest factor to consider when looking to buy a vacation rental is location, location, location, location. Buying property is always hinged on location, but with a vacation rental even more so. The only reason people will choose your vacation rental is for it’s proximity to something they are interested in. Whether that is a quiet, peaceful location that brings them rest and relaxation on the grounds or close proximity to an entertainment hub like downtown Nashville, location is the number one most important attribute to your next vacation rental purchase.
Many times a property that is not outfitted to be a vacation rental has potential, especially if the location is ideal. A good strategy is to determine what location type your interested in and start your search with those attributes in mind. For example if your interested in recreation then Mount Juliet may be a good place to start because of it’s close proximity to a multitude of aquatic docks and parks. Another example would be Franklin, Tennessee because of it’s quaint and fun historic district that is loaded with delicious eateries, live entertainment, shopping and events.
Typically you will want to look for smaller properties that can be optimized for a hotel style accommodation. The property may be distressed but in an excellent location. In this case, if your up for a renovation project, the property is ideal to turn into a vacation rental.
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Small apartments or condos located in downtown Nashville make excellent vacation rentals. Many need serious renovation but will make a healthy vacation rental income for many years to come. Because those types of properties have a lower square foot the cost to renovate is also smaller but often yield a high vacation rental rate. In addition, those types of properties could be used as a regular rental as well.
