If you’re always on vacation, you may have dreamt of owning your own holiday home instead of renting out other people’s homestays.
Many may consider this for quite some time but hold back due to building and maintenance expenses.
But with proper research and planning, your rental property can be your perfect rest house and your passive income source at the same time.
Here, we’ll show you tips to cut down on costs and turn your dream into a reality!
Do Your Research
Everything starts with some research work. For rental homes, it will require you to do just as much as when you’re planning to build a regular home.
Although for property investments, you must focus more on the business-related side of things.
Doing a hefty amount of research, in the beginning, will help you have a successful plan in the future.
With that, here are the essential factors you should look into before building your own rental home:
1. Study the Location
Whether you’re using your own empty piece of land or planning to buy a new lot, you should thoroughly check if a place is rent-worthy before investing in it.
Are there nearby tourist spots? Is it located in a well-developed place or a business area? You can’t just jump on the cheapest area you’ll find.
It’s important to consider these things to ensure the success of your investment.
You can conduct an initial scan of the rental homes in your area. Are they jam-packed with bookings?
Are rental homeowners successful with their business? Is there too much competition in the area?
Comparing your home with the rest of the neighboring rentals can help you identify the proper rates to rent out your house.
You can also have a competitive edge by offering lower prices, only if the return on an investment will still be great.
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3. Learn the Trends
You don’t have to follow each trend every time, but it’s good to keep an eye out for what’s buzzing in the world of homestays.
Find a property that you can easily design and layout according to what’s popular, so you won’t have to incur additional expenses.
May it be having a neon-themed bedroom, multi-functional furniture, a simplistic layout, or a luxury infinity pool, you just have to choose trends that work best for you, and of course, suit your budget!
4. Follow Rules and Regulations
Anywhere you go, there will always be a set of laws you should follow when building or renting out a vacation house.
Be sure to learn and follow them before you start renting out your house to avoid penalties, lawsuits, and violations.
Check Out the People and the Neighborhood
You should definitely look into the people who reside in the area because they are your potential tenants.
Study the demographics of the people and the economy of the place. Are there many individuals who opt for rentals? Is the place worth investing in? Will your rental home be successful in the long run?
Choose Cost-Efficient but Quality Options
How do you save up while adding value and maintaining the quality of your home? Easy!
1. Save Up on Energy
Details like big wide windows help decrease the energy use for lighting and spruce up your space at the same time.
Another energy-efficient tip is to opt for LED lighting and other LED gadgets. They not only save on utility bills but they are also known to last longer than regular ones.
Now that helps you avoid buying replacements, too!
2. Go for Modular Construction
It’s affordable and sustainable, but most of all, quick to build! No wonder there’s a lot of buzz going on with prefabricated structures.
There are many types of modular homes and one of these is transportable homes. These can either be mounted permanently or transferred from one location to another.
Imagine the endless possibilities they could offer. They’ll surely satisfy the wanderlust of tourists! Consider all these advantages and more.
There are actually a lot of affordable transportable homes in Victoria you can choose from.
3. Make Your House Attractive Without Breaking the Bank
Sure you’d want your rental home to wow all your potential tenants at first glance. But putting in luxury items wouldn’t exactly mean you can demand for a higher rental rate.
Focus on buying practical furniture that complements the overall look of your space.
Having a unique home design can also attract more people, so be exceptionally keen when planning the layout of your interior.
4. Reuse Old but Functional Furniture
Do you have any extra furniture lying around? Or do you have paintings or decorations you no longer need? Put them to use by adding them to your rental home’s interior.
This way, you won’t have to purchase new ones and you can save up on expenses.
Renting out a home can be a difficult thing to do especially when you’re still a beginner and you don’t know where to start.
However, you can make things easier in the long run when you start learning the whole process step by step.