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What are the Four Top Reasons Why Vacation Rentals Are a Good Investment?

Added: Sep 23, 2021
Category: Property Owner Tips

Vacation rental properties are a part of the real estate investment industry that continues to grow, even with the pandemic changing everyone’s travel plans. 

You may have experience renting a vacation house, but owning the property yourself can turn out to be a quality investment with all sorts of different opportunities. 

Purchasing and renting out a vacation property will provide you with the opportunity of making a whole new stream of disposable income. Vacationers looking to get away will seek your property out, assuming you have the right location, appealing space, and luxury amenity upgrades.

Income Opportunities

Where your rental is located is highly crucial to your investment. When deciding where to purchase your rental vacation home, make sure to pay attention to the area's "high season" months. Doing so will help you prepare for the high demands and lulls throughout the year. For example, on Captiva and Sanibel Islands in Florida, the high season generally covers the first half of the year but also includes Thanksgiving and Christmas weeks. Captiva is considered by some to be the best place in the country during the winter months and is beautiful throughout the spring months. These months yield the highest demands of the year which mean great rental opportunity for property owners. Some years ago, summertime was off-season but now, Captiva is quite popular as a vacation destination from June through August as well. Fall is the lowest season in terms of visitors.

Also, it is important to remember that vacation property ownership is an investment. So the more money you put into the property to make it more attractive to renters, the more money you will get out of it. In addition, the money coming in from rental fees will help cover any additional improvements and maintenance needed to be done to your rental property yearly. Many prospective renters will ask property managers for a rental pro forma to help get an advanced sense of a property's earning potential. This will help you make an informed decision.

Tax Benefits

Many people thinking about investing in a vacation rental property are unaware of all the annual deductible expenses. Buying a rental vacation property functions the same as buying a house — both require mortgage payments, property taxes, and insurance payments that come with ownership. The difference with investment properties is that it qualifies as a business if you plan to rent your property for more than 14 days out of the year. The benefit is that you can write off some or all of your rental expenses, depending on state law. In addition, all the necessary payments for the property itself and business-related expenses can be used for tax purposes. These include cleaning costs, repair fees, accounting fees, marketing fees, and much more. The tax benefits are a great way to offset the investments needed to keep the property up and running.

Reliable Real Estate Investment

Whether for residential or vacation purposes, real estate is generally a safe investment. If held long term, you could see significant increases in property values. Vacation rental properties can even increase in value quicker than residential ones, especially if you purchase your rental vacation property in a high-demand area. Before making your final decision, be sure to research the current and past market trends for the location you are looking to purchase. Any upgrades you make to your rental property that will give your guests a better experience can increase the property's value.

Personal Use

Owning a vacation rental property means you can use it for yourself or your family as well! You won't have to go through the lengthy process of booking a costly hotel when you already have a place to stay. Instead, choose a profitable location like Captiva or Sanibel Island and a place that you could see yourself relaxing in.

While having your getaway, you can take note of what aspects make your property stand out. Combined with any reviews you may receive, these observations will help you understand what to emphasize when advertising to potential guests.

If you are thinking about investing in a Captiva or Sanibel vacation rental property but are unsure where to begin, Kingfisher Vacation Rentals can help. We are dedicated to providing exceptional service to guests and homeowners that goes far beyond the reservation process.

Kingfisher Vacation Rental Management Services will make sure your rental home checks all the boxes before each guest arrives. We clean, inspect, and maintain your property with our in-house housekeeping run by a dedicated manager. We provide 24/7 maintenance services to guests during their stays, ensuring timely resolution of issues and positive reviews. Our team 360º view of your property and guests enables us to manage your property’s reputation, get 4-5 star reviews, and get you more rental revenue. To learn more visit our website or contact us: info@gokingfisher.com or 239-472-2100.

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About Kingfisher Vacations

At Kingfisher Vacations, we are dedicated to providing exceptional service to both guests and homeowners that goes far beyond the reservation process. So go ahead, give us a call. We are waiting to make your next vacation extraordinary!

Contact Us

11528 Andy Rosse Lane, Captiva, Florida 33924

2402 Palm Ridge Rd Sanibel, Fl 33957

+ 239 472 2100


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