In this article, devoted to advice for those intent on buying a vacation home, you can find some basic rules to consider before embarking on an endeavor full of both opportunities and pitfalls: asset management of apartments intended for short-term rentals. Let's see what this is all about.
In recent years, the short-term rental market has boomed; in fact, tourist rentals have proven to be an excellent form of investment for those who have decided to put second homes to income.
If, therefore, you, too, are thinking of throwing yourself headlong into buying a vacation home because you've heard that it's the trend of the moment or, better yet, you want to start down the path of real estate investment, here are some useful tips.
- One place is not worth the other
The first thing to evaluate is the rental potential offered by the area in which you intend to buy.
Whether sea, mountains, hills, or historic centers, all coveted vacation destinations have excellent potential for future earnings. Evaluate the areas most in demand by both Italian and foreign tourists.
Always try to "fall in love" with the deal more than the property itself, weighing its strategic location and convenience.
- Evaluate all costs
Both the purchase price and operating expenses must be considered for a good vacation home purchase.
Usually only the purchase price is considered, those who are approaching the purchase of a second home or a property to put into income set a spending budget. But what are the other costs that need to be considered and that greatly affect the price?
First, there are the condominium expenses if the apartment house is located in a condominium. Then the costs of routine and extraordinary maintenance. To this you also add a number of repair costs, which tend to be higher than those of a long-term rental house, precisely because of the constant change of tenants.
- Management
The time and distance factor are also two essential aspects that should not be underestimated, lest you find yourself reselling the property you purchased after only a few months.
In fact, to run a vacation rental truly profitably, you need to invest not only money but also time: to sponsor and promote it to the best of your ability; to handle check-ins and check-outs; to meet the needs of your guests.
This means that either you have a way to turn real estate investment into your main business or you have already thought about who to delegate the asset management of your vacation home to. In the latter case, rely on a qualified professional who has all the necessary skills in leasing, tenant management, and property maintenance. We therefore advise you to locate your agent of choice before finalizing your purchase, so that you have as real a forecast as possible of the overall management costs and do not make a risky investment.
In other words, those who want to invest in bricks and mortar must be prepared to constantly come to terms with the constantly changing math and rules.
You can turn to our agents for assistance in choosing and purchasing the property to put into income and for subsequent management.
