6 Benefits of Investing in a Vacation Rental Property
If you are interested in real estate investments, a vacation rental property in Myrtle Beach could be just the right investment for you. It serves as your second home or vacation home when you want it and brings in extra income when you aren’t using it. Let’s take a look at some of the benefits of investing in a vacation rental property.
1. Rental Income – When you aren’t using the home, you can rent it out for vacation rental bookings. The bookings generate income to help pay for the mortgage, the insurance, the property taxes and property maintenance. Depending on how much you charge per night or week, it could also generate a nice stream of extra income for you as well.
2. One Property, Two Uses – You get two uses out of one property. First, it is your second home or vacation home when you are occupying it. Second, it is an income-earning vacation rental when you aren’t using it. You get a great vacation home to use for yourself and extra money when you aren’t there.
3. Tax Deductions – When it comes to tax deductions, always seek the advice and assistance of a qualified accountant. That being said, you could earn tax deductions for your mortgage payments, insurance premiums, property taxes, rental income, utilities and other expenses to maintain the rental property.
4. Low Risk – Of the various types of investments out there, a vacation rental property is a relatively low risk investment. Part of the reason for the low risk profile is that if you struggle to keep it booked as a vacation rental property, you can change strategy and instead shift the property to a long-term rental property instead. You have multiple ways you can leverage your property to keep it cash flow positive.
5. Minimal Hassle – If you sign up with any of the many excellent vacation rental management services in the area, you can have your property professionally maintained, cleaned between guests, restocked, fees collected, complaints handled and more with minimal hassle for you.
6. Appreciation Value – Depending on how long you own your vacation rental property, chances are that over time, the value of the home will appreciate or increase. This means if you do ever sell it, you’ll net a profit on the home due to the increase in home value over time.
If a vacation rental property is an investment opportunity you are interested in, give your Century 21 Broadhurst agent a call. We can share with you about all the ins and outs and what it takes to choose a successful vacation rental property in Myrtle Beach.