If you’re thinking about investing in a vacation rental, beware of these four cons.

Investing in real estate is a great idea, and one of the many ways that you can invest is by acquiring vacation rental properties, which can be high-paying, in-demand properties with great short-term tenants.

However, the picture is not all perfect, so you should make sure you do all of your due diligence before investing. Specifically, beware of these 4 vacation rental cons before investing. Of course, these might not be deal breakers for you but you should at least know about them.

Beware Of These 4 Vacation Rental Cons Before Investing

Con #1. Specific Location

Most tenants will want to be somewhat close to a specific vacation destination.

For example, if you own a vacation property in a large ocean-side city, your tenants will want to be closer to the ocean. Some may even prefer to be walking distance from whatever landmark or destination that attracted them to the city in the first place.

For that reason, when you invest in vacation rental property, make sure that you choose properties that are close to a tourist area.

Con #2. Higher Priced Houses

Location can determine demand, and a high-demand property can cost more money. So make sure you factor that into your budget before investing – do you risk buying a cheaper house further away from the tourist area and hope your vacation renters will pay to stay there and drive across town?

Or, will you pay more for vacation property close to the landmark because that’s where our renters will prefer to stay?

Con #3. Furnished

Unlike long-term residential renters who want to live in a property for years, vacation renters are coming for a short term with just their suitcases. They need a property that is fully furnished – with beds and couches, but also linens, towels, and cutlery. This can add an additional cost up-front but you can’t NOT have it with a vacation renter!

Con #4. Frequent Cleaning

Vacation renters pay more and stay shorter time than a residential renter. And that can be a good thing but it also comes with a downside: frequent cleaning. You’ll need to clean up the property in between renters and that can take time, especially if you’re cleaning the whole house every week.

Summary

Owning a vacation rental property in Wilmington NC can be an amazing and lucrative investment. However, make sure you beware of these four vacation rental cons before investing and plan for them so you aren’t taken by surprise.

If you want to learn more about the pros of having a vacation rental property we also have that our Wilmington blog page!

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Simply fill out the form below or give our office a call at (910) 538-7737 to connect with our team of real estate experts. We’re here to guide you every step of the way. Don’t wait—start your journey toward owning your dream vacation property today!