Ready for rentals?
Key questions to answer when deciding whether to rent out your vacation home
To rent or not to rent, that is the question - and there’s several factors that go into making that decision. Here are some key considerations:
Does it make financial sense?
The primary motivation for renting out a vacation home is often financial. Assess financial goals and determine if rental income would help offset the costs associated with owning the property, such as mortgage payments, property taxes, insurance, maintenance, and utilities. Consider the potential rental income based on the rental time period and calculate the return on investment. For LBI, peak rental season is 8-10 weeks.
Am I going to regret not being able to use the house whenever I want?
Evaluate how often you plan to use the property yourself. If you like the flexibility of running down on weekends or throughout the week whenever possible, then renting it out might seem restrictive. If you prefer to plan for two prime-time August weeks, then renting may be an option for the rest of the time you’re not down on LBI.
Can I legally rent out my house?
Make sure you’re up to speed on any local regulations, homeowner association rules, or rental restrictions that govern short-term rentals in the township where your home is located (it may vary). Some areas have specific requirements or limitations on rental durations or occupancy, which can impact the feasibility of renting out the property.
Will my house rent?
Analyzing the competition is a good way to evaluate if your property is well-suited for rental purposes. Factors such as the property's size, location, amenities, and overall appeal to potential renters are taken into account. A property with desirable features, such as proximity to attractions, beach access, or unique amenities may have higher rental potential.
Who will take on renting it out?
From booking procedures and rotational cleaning to marketing and maintenance during their stay, a lot goes into a rental income strategy. You’ll need to decide if you are willing to handle all that yourself or if you prefer to hire a property management company to handle these tasks. If you’re going to outsource, make sure to include that in your expense calculation.
Do I feel comfortable sharing my home?
Some homeowners may have concerns about sharing their personal space and belongings with strangers. Take stock of your comfort level with having guests on your property and decide if you can maintain the privacy and security of personal belongings during rental periods - plenty of homes have accommodations for this like one or two closets being saved as “owners closets” and locked during rental periods.
By carefully considering these factors, as a vacation homeowner you can weigh the financial benefits, personal preferences, market conditions, and logistical aspects to determine whether renting out your property aligns with your goals and circumstances. And of course, reach out to a local LBI realtor to help you answer these questions and determine whether or not renting is right for you.