If you're hoping to break into the real estate business by buying properties to rent, you might consider a vacation property at popular destinations in the United States. A condo in California, Florida, or Hawaii might be the perfect investment because you can find short-term renters year round who want to experience amusement parks, beaches, and excursions in the area.
Here are some tips that can help you find the right property.
1. Stick with low maintenance options.
As your first property, you don't want anything that is too challenging to take care of. You should look at places that are newer with low maintenance components. Vinyl or stucco exteriors, for example, require less maintenance than wooden ones. When viewing properties, looking for low maintenance features like:
- Grass-free landscaping. Rocks or mulch beds mean no mowing lawns. On a similar note, fewer trees and shrubs mean less raking or pruning.
- Homeowners Associations. Many people avoid HOAs, but they can great for a landlord because they deal with day to day exterior maintenance and provide some amenities that can attract tenants.
- Durable flooring. You don't want to worry about cleaning carpets all the time, so look for hardwoods, tile, or quality laminate or vinyl floors.
2. Choose a great location.
In tourist areas, a prime location will cost you, and if you're hoping for something quality, the price goes up even higher. So, you need to make some sacrifices, but with enough consolations that your place is still attractive for renters. You can try to find a place that:
- is connected to major transportation networks in the city.
- is close to the beach, even if it isn't close to other attractions.
- has one or two local attractions that aren't as popular but are "hidden gems" that bring steady business.
- offers close by amenities like groceries, walking trails, or shopping.
Don't be afraid to play up the good things about a location. For example, if your place ends up being more suburban and away from nightlife, highlight local parks that might make it a good rental for young families instead of city-hopping singles. You might note local experiences, such as dolphin swimming adventures, hikes to see city landmarks, or trips to smaller beach towns that have good pier attractions.
3. Contract with local businesses and transportation to make renting easier for vacationers.
Look for local cleaning businesses that can come and quickly spruce between stays. You can also offer discounted rates for tenants who use a local cab company or who choose certain attractions. Contact a company like Kona Ocean Adventures for more information and assistance.