Create an Enticing Vacation Rental and Create a Rewarding Income Stream

If you’ve had even a passing thought of using your home as a vacation rental, it’s time to give it more serious consideration. It does require some effort, so it’s more of a semi-passive income stream versus just passive, but it’s putting an asset to work for you. In turn, it offers some great tax benefits as a landlord that you won’t get as a homeowner. 

Washington is an attractive and popular vacation destination. Not everyone can afford to buy a second home here to use as a vacation space, but renting a home (versus a hotel) appeals to many. That’s the audience you want to tap into, and by putting some effort into your home, you can attract those vacationers and their vacation budgets.

Business details

Once you’re convinced of the many advantages of running a vacation rental business, you need to consider the drawbacks. Renting assumes some risks: Some are to be expected, like wear and tear on your home. But there is also the possibility of injuries, accidents, or other situations that could potentially result in increased expenses for you — or worse, lawsuits. This could leave you burdened with excessive debt and liabilities — the exact opposite of your vacation rental business goals!

One way to protect you and your personal assets is to form a limited liability company or LLC. It’s easy to learn how to start an LLC in Washington state through a site like ZenBusiness. While a lawyer can quickly and easily set up an LLC for you, the thousands that you could save on an attorney can instead go toward making upgrades to your rental.  

Assess and amend the necessary amenities

Vacationers tend to look for specific amenities that, while straightforward, might be overlooked: from a full kitchen to wine glasses, for instance. Many also want a pet-friendly environment, so if that’s something you are willing to offer, consider fencing off your yard or a portion of it to more easily accommodate pets. You’ll want to also make sure you have easy-to-care-for flooring and durable yet attractive furniture. 

Access to laundry amenities is also appealing. If you don’t want vacationers using your full-sized washer and dryer, consider installing a smaller, apartment-sized washer and dryer that is not so expensive to replace when it wears down from frequent use. Other easy amenities to add include luxurious bedding, bath towels, bicycles, and blackout curtains for fatigue-free sleep. An extra thoughtful tip is to provide a luggage scale so your guests can make sure any souvenirs they pack won’t put them over allowable airline weight limits.

Your home’s outdoor living space

Assess your current outdoor living situation and what you can add or change. If you have a patio, make sure you include some durable yet comfortable patio furniture — and don’t forget the easy-to-use barbecue grill and tools. If you don’t have a hot tub, installing one can attract the higher-paying holiday clientele and pay off in the long-term. Consider, however, that it could also increase the value of your home, which is advantageous if you decide to sell it later. 

A good life with smart investing

Making use of an existing asset to generate income can be a wise and lucrative investment strategy. Once you have estimates on the costs necessary to upgrade and prepare your home as a vacation rental, talk with an expert property manager to get advice on how much rental income you can expect so that you get a full picture of your return on investment.

Are you on the hunt for a second home in Washington state, turn to the experts at The Seiler Home Group to find the perfect vacation property. Reach out today! (907) 342-7456