When it comes to investing in a rental property, you might be faced with the choice of choosing between a vacation house or a cabin. There are numerous considerations for both. In this article, we’ll take you step-by-step through the intricacies of renting your vacation house and a cabin property so that you can make the best decision possible for your investment.
VACATION HOUSE RENTALS: A CLOSER LOOK
In Minnesota, there’s a distinct market for vacation houses and cabins. Here, we want to take a closer look at the purchase of a vacation house rental.
When shopping for a vacation home, it’s important to keep location in mind. While you might get a better deal in one area, you might get a better location somewhere else. Consider what your potential renters want. Do they want to be close to shopping and nightlife? Close to a remote body of water? The extra cost of the property is likely to pay off if you’re in a desirable area.
At the same time, you want to make sure that you stay within your budget. Vacation rental homes are typically affected by peak times. Seasonal rates will vary, and you’ll need to consider how fast you’ll actually be paying down your loan. Peak times for vacation house rentals might be holidays and the summer season, so if you buy in the winter, it might be a few months before you begin to generate return on your investment.
VACATION HOME AMENITIES
Another consideration that is specific to vacation home rentals are the amenities. When it comes to a vacation house, renters are usually looking for a more urban experience. As we mentioned, that includes the location, but it also means special features such as a swimming pool, wi-fi, proximity to delivery restaurants, and ease of transportation and parking. It can also mean a contemporary interior. Vacation house renters typically want a more upscale look and feel, complete with plush furniture, decor, high-end appliances, and other impressive features.
A vacation house rental can cost more than a cabin, but you could potentially find a foreclosure in a great area. Of course, you’ll have to weigh the options of buying as-is property that might need some remodeling. For some people, this is a great strategy, but it depends on the situation.
Also, a vacation house rental can be managed by rental management company to ensure that you’re bringing in the most renters on your schedule as possible.
Bottom line: make sure you’re getting a great deal in an area that’s close to shopping, restaurants, and nightlife. Make sure your renters have nice amenities, and they’ll be happy!
AN INSIDE PERSPECTIVE ON CABIN RENTALS
If you’re looking into investment property, you’re essentially creating a business. As with any business, it’s important to consider what the customer wants. In the case of a cabin rental, it’s especially important to think about what a renter wants. They aren’t coming to the city – they’ve chosen to stay in a rural and secluded area for a reason.
For that reason, when choosing a cabin rental as an investment property, it’s important to choose the right location. As opposed to a vacation house, a cabin should be in a quiet area. Don’t purchase a cabin rental near a construction zone! Your renters want an isolated look and feel, and you want to make sure that you can deliver.
Whereas peak times for a vacation house might be summer or holidays, cabin rentals can include those peak times and more. For instance, cabin rentals are especially popular during the winter months. This means that if you want to spend winter in a cabin, you can – it just might not be your rental property. This also means that you’ll definitely want to utilize property management, as your property will be in-demand during more times of the year. Rental management can provide plenty of help with scheduling booking, which saves you time and stress.
When it comes to amenities, cabin renters aren’t usually looking for the most contemporary look and feel. Instead, they’re interested in a quiet, rustic place to call home. Amenities can include a television and perhaps wi-fi, but you shouldn’t worry too terribly about purchasing a cabin rental near restaurants and nightlife. Your renters are going to expect to be a little further outside of town when staying in a cabin.
Instead, focus on creating an atmosphere. Cabin renters love plush blankets, rustic decor, and outdoors themes. Bird Feeders, barbecue pits, and fireplaces attract cabin visitors.
Another consideration for a cabin rental is insurance. Depending on your location and surroundings, your insurance could be different, but you’ll need to talk to your insurance company to find out what pertains to you.
The bottom line on purchasing a cabin rental is this: go for the outdoors look and feel, and don’t worry about offering upscale amenities.
RENT YOUR PROPERTY WITH MINNESTAY
Perhaps the best way to decide whether to invest in a vacation rental home or a cabin rental is to consider your preferences and pair them with the type of renter you want to attract. If you identify with the outdoors enthusiast, then you’ll be able to provide a better cabin rental experience for them. If you are more interested in a vacation entailing city escapes, then you’ll be able to offer an atmosphere most preferred by those who enjoy the same.
Learn more about how Minnestay can help you rent your vacation home or cabin.
In either case, you’ll want to deliver the experience of your audience, and rental management can help you do just that. Contact our team today for details on how we can help!