As February comes to a close and we head into spring break season, many vacationers are left thinking about how amazing it would be to own a turnkey vacation rental – perhaps even one that offered guaranteed rental income – in one of the world’s top vacation destinations. With ongoing increases in the economy and in the global housing market, the idea of buying real estate where you can also enjoy the best winter vacations no longer seems so far out of reach.
According to U.S. News & World Report, recent years have brought about the biggest uptick in the number of people who are buying real estate to use as a second home since 2006.
“Rising home prices and stock market gains stoked a market flooded with baby boomers nearing retirement.”
Pros of Vacation Home Rentals
Although any investment contains some uncertainty, since a vacation home is not a necessity it can always be sold. Also, vacation homes can provide a solid return on investment (ROI) immediately after purchase. Some even offer guaranteed rental income and others pride themselves in being turnkey vacation rentals, with signature no worries, no hassles ownership programs.
“The upside is clear: Decorate as you like, leave your clothes and toys, and use the property whenever you want – maybe even retire there someday,” wrote U.S. News & World Report. “And if you have unlimited use, you needn’t gnash your teeth over every rainy day.”
Of course, it’s also wonderful when your friends and family always have somewhere to stay, building lasting memories of the best winter vacations and most amazing summertime getaways. In addition, successfully managing vacation homes rentals can provide ongoing rental income while building equity, and as an investment it can also qualify as tax-deductible.
Cons of Vacation Home Rentals
Most of the cons that buyers associate with vacation home rentals involve unforeseen expenses, but buying real estate in a popular tourist destination will help ensure that you enjoy a strong, ROI through consistent rental income. Depending on the type of property you decide to buy, it can be overwhelming when faces with problems that have to be fixed, as well as the task of marketing the home and the time involved in successfully managing vacation home rentals.
“Maintenance costs can he high if you must hire a pro for every little job you’d do yourself at home," wrote U.S. News & World Report. “You should talk with real estate agents and definitely speak with other property owners in the area.”
Of course, there are plenty of property management companies out there who will be more than happy to help you manage a vacation home rental, but many of them charge high fees that will quickly eat up any profit you would have made. Also, no matter how much experience a property management team might have, if they are responsible for a variety of properties all over town it will be hard to focus the necessary attention it requires to keep satisfied travelers coming back time and time again.
No Worries No Hassles Ownership
If you’ve always dreamed of buying real estate in a popular vacation destination and owning a second home that can double as a rental property, but have held back because the potential expense seems overwhelming, while the returns feel unknown, consider buying a turnkey vacation rental property that offers a signature “No Worries, No Hassle Ownership" program designed to take care of all the details that make successfully managing vacation home rentals challenging.
Properties like the luxurious Villas Aqua Boutique Hotel & Residences in Puerto Aventuras, as well as the innovative Villas Las Palmas Boutique Hotel & Residences in Tulum are designed to be vacation rentals and luxury residences. And since only one company manages all of the units, the expenses are lower and the attention to detail that all guests receive is second to none. But best of all, there is virtually no work for the owner and all earnings are direct deposited into your account anywhere in the world. Doesn’t get much better than that, now does it?