Homeownership and traveling are more closely related than one may think. By renting out a second home property as a vacation home, one can generate a lucrative form of profit, especially as people gear up for their summer adventures. Many valley residents choose to vacation in the summer months to cool down. A popular spot for locals and out-of-state vacationers to seek refuge from the summer heat is in Northern Arizona’s communities, like Flagstaff.
MORE NEWS: Phoenix ranks No. 3 for increase in number of newly listed homes
Flagstaff is an excellent destination to purchase a second home in to unwind, and an ideal location to capitalize on the city’s travelers through renting the home. Below are some helpful tips for guidance when purchasing a second home.
Allocate Funds for Upgrades and Features
If you are considering owning rental property, then allocating funds towards amenity and utility upgrades, as well as trendy entertainment features, may be beneficial for making your rental stand out amongst others in the area. Features like grills, pool lights, jacuzzies, or well-maintained landscaping can increase your likelihood of booking as travelers search for an aesthetically pleasing & affordable place to stay. Small but thoughtful details like these can appeal to vacationers and possibly entice them enough to return to your fashionable rental home for future vacations. In addition, setting aside a ‘rainy day’ fund for maintenance and repairs is another way to ensure a clean look and positive experience for renters.
Incorporate Property Managers
Owning and well-maintaining a second home can become time consuming and complicated, especially if your primary residence is far from the property. Hiring a property manager is a recommended solution for homeowners that allows for minimal schedule and lifestyle disruptions. Property managers can screen tenants, collect rent, help with maintenance and in the worst-case scenario, evict unruly guests. The possibility of guests hosting loud parties, damaging the property, or more serious issues like electricity or plumbing issues are all circumstances in which having a property manager nearby would be advantageous.
Budget and Keep Accurate Records
Budgeting requires strategic thinking and preparation to both effectively save money and maximize profits earned from the vacation property. Prior to owning another home, it is extremely helpful to have an organized system in place dedicated to money management. It may be worthwhile setting up a separate bank account to keep your rental finances separate from your personal finances. Deposits and withdrawals can be a hassle to review, especially if your bank statements share a singular account that is constantly fluctuating. Furthermore, property management software can be useful as well, saving the owner time and making it easy to review one’s budget and spending habits. Emergencies and last-minute situations are a part of life, but homeowners can stay proactive by having systems and tools in place prior to a situation arising.
Work With a Realtor Professional
It is highly recommended that homebuyers work with a realtor professional who possesses background knowledge in vacation properties. Most real estate professionals will offer objective information and opinions to help you navigate complex legal documents and stay within budget. The process of filing paperwork during the homebuying process can be confusing, and through delegating this task to a professional, there is reduced risk of making a mistake that might have negative financial impact. There are many long and complicated agreements and legal jargon involved in contracts and agreements, and realtors lighten this load while also serving as an advocate for the buyer.
Allocating funds for repairs and upgrades, working with realtors and property managers, adequately budgeting to maximize profit, will elevate your process when purchasing a second home. If you’re interested in working with a realtor while shopping for your second home, please visit fineprop.com.
Author: RE/MAX Fine Properties is a locally owned and operated full-service real estate brokerage with offices across Arizona. Founded in 2008, the brokerage has more than 300 REALTORS® and specializes in both residential and commercial real estate. RE/MAX Fine Properties is a proud supporter of Children’s Miracle Network Hospitals®, Susan G. Komen®, and other charities, and is headquartered at 21020 N. Pima Rd. in Scottsdale, Ariz. To learn more www.fineprop.com.
