Investing in a lake home as a vacation property rental can definitely be something that will pay off. Vacationing by the lake is something many tourists consider to enjoy a relaxing stay away from home. However, before you invest in a lake home, you should consider these four things:
- Access to Amenities: Renting out a lake home can be more challenging when it is not located near to any amenities, such as a gas station, food store, and more. On top of this, it can be even more challenging if your lake home is so far from the town center that it doesn't receive cell reception, cable, or other amenities such as these. It's important to keep this in mind since you won't be able to rent out your lake home for as much money as you would a lake home with all of these amenities.
- The Lake Amenities: Families flock to lake homes that have access to a lake that provides many amenities, such as boat rentals, restaurants on the water, and more. Lakes that do not have these types of amenities typically aren't the ideal location for a family or large group of people. However, you can still rent out to those who want to enjoy the lake with their own lake toys, such as jet skis and boats. Just keep in mind that you probably won't be renting to as many people during the peak vacation season since many people don't have their own lake toys to bring along with them.
- Be Mindful of Insurance: A lake home may not be worth investing in if you have to pay a ton of money on homeowners insurance. Lake homes generally require more insurance because of the fact that they are more vulnerable to floods and other elements of nature. It's important to check the home's history and ask around for insurance rates to determine whether or not the homeowners insurance payments will make your investment difficult to pay itself off.
- Know if You are Able to Make Renovations: Some lake homes, according to the state or city law are not able to be changed. This may not be ideal if the lake home does not currently have features that you believe will make it more appealing for renters. For example, if the home does not have a dock for renters to park their boats, you may want to invest in building one. However, this may not be possible due to state or city law.
When you know these four things to consider when investing in a lake home, you can make sure that you make the best investment decision possible. Don't forget to hire a real estate agent who can help you determine which lake home is best for you to invest in as a vacation property. They will ensure that lake homes that do not meet your requirements are taken off the list.Share