Buying vacation properties to rent out as income-producing investments is nothing new, but today’s innovative new turnkey vacation rentals are taking the concept to another level by offering unbeatable return on investment and stress-free ownership in some of the world’s best destinations. Here are our top four real estate investing tips for buying turnkey vacation rentals that will deliver ongoing investment income, as well as provide a backdrop for the best winter vacations and summer getaways your friends and family can imagine!
1. Define What “Turnkey” Really Means
Make sure that you have a crystal-clear definition of exactly what “turnkey” means for any real estate investment you are considering, including exactly what the property manager’s fees and responsibilities are. Generally, turnkey vacation home rentals are investment properties that require no day-to-day involvement from the owner, but are instead managed by a professional company that handles all scheduling and maintenance requests. This is especially important if you are investing money in a rental property that is located far from your main residence. Any truly turnkey rental property – such as Villas Las Palmas Boutique Hotel & Residences in Tulum, which offers “No Worries No Hassles Ownership” – lets buyers enjoy everything great that comes with the ultra-chic modern Tulum lifestyle, with none of the headaches. Regardless of where you buy, the same should hold true unless you want successfully managing vacation home rentals to become a full-time job.
2. Avoid Cheap Properties Like the Plague
Some real estate investing companies may try to convince you that the best way to make big money is to buy super cheap investment properties, but in reality, the opposite is often true. Low-priced real estate actually makes the worst turnkey investment – especially when you’re looking to maximize vacation rental returns. Of course, you also don’t have to go to the other extreme and buy a property that exceeds your budget. Instead, weigh all the options in your areas of choice and look for turnkey real estate investment companies that have a good reputation and truly understand the local vacation rental market. Then, find a turnkey property within your budget that offers ongoing return on investment and a property management company that knows how to handle the ever-changing online rental market and will immediately take care of all repairs and maintenance requirements.
3. Find Steady Yields & Passive Investments
Searching for great turnkey rental properties for sale can feel a bit like searching for a unicorn… Until you find a vacation rental property for sale that provides ongoing return on investment (ROI) in one of the world’s top vacation destinations, that is! The point is that investing in real estate requires patience and a clear definition of what you are looking for, combined with the ability to act quickly when you find a great property. What makes a great vacation rental property? It’s really quite simple, when you break it down, but it’s also essential to realize how important each part is. Start by looking for turnkey vacation rentals that provide consistent ROI, in an area known for excellent appreciation. The property or development should be built using modern, low-maintenance, sustainable materials, by a reputable company and managed by a reputable turnkey vacation rental provider that knows the area inside and out.
4. Ensure Excellent Customer Service
Over the last ten years or so, the evolution of the Internet has really changed the vacation rental market, making it more important than ever before to provide the very best customer service and to go above and beyond in terms of amenities, finishes, location, price and attention to every detail. As a result, it’s virtually impossible for most busy working adults to learn the keys to successfully managing vacation home rentals without making it a full-time job, which is rarely an option – especially in the beginning of the journey into alternative investments. This is where experienced property management companies come in, playing a crucial role in today’s turnkey vacation rentals and understanding how to navigate the vacation rental market to ensure high occupancy rates all year round. Of course, maintenance is also a key component of getting repeat business, rave reviews and creating a word-of-mouth buzz around your vacation home rental, so it’s essential that your turnkey provider is a real rock star on all of these fronts.
Are you considering investing in real estate that includes turnkey vacation rentals? Share your top questions and concerns in the comments below!
Would you like to know more about turnkey vacation rental real estate investing? Click the following link to see how Vacation Homes Can Be Income-Producing Rental Properties and begin your journey to owning a piece of paradise today!