Step 1: The Right Investment Home
What is the right investment home for you?
There are 2 parts to this answer:
1) Your investment home must have the CORE ELEMENTS needed to maximize your investment (i.e.- good location, adequate number of bedrooms and bathrooms, pool, etc.).
2) The price of your investment home must be low enough to allow for you to renovate the home, which it probably will need (See Step 2), and generate a profit. At a minimum, you will need cash for the deposit on your loan, closing costs and any renovations/upgrades needed.
The best tools to use to determine which vacation home will be the best investment home for you are pro forma statements. Pro forma statements include your total investment costs, all rental income and expenses including mortgage payments, and a forecast of profit.
Need help with creating pro forma statements? Contact The Pro Agent Group – They can create the pro forma statements for you.
Step 2: The Right Furnishings And Amenities
TO MAXIMIZE THE RENTAL INCOME from your investment home, your investment home must look new and modern with furnishings and amenities that attract a broad base of renters – furnishings and amenities like movie theaters, game rooms, themed kids bedrooms, etc. like these . . .
Modern Dining/Living Room
Full Modern Kitchen
Themed Kids Bedrooms
Need help with renovating your investment home? Contact The Pro Agent Group.
Note: The above photos are of a vacation home that is not for sale. It is available for rent –
Step 3: The Right Property Manager
GREAT REVIEWS by your guests are so critical toward the success of your investment home. Bad reviews hurt rentals. Good reviews boost rentals. The two main contributing factors to a review of your investment home are the upkeep of it (including preventive maintenance and cleanliness) and customer service, and they are the responsibility of your property manager. When your property manager is doing a good job in these two areas, good reviews will result. When done poorly, bad reviews will result.
Need help with choosing the best property manager for you? Contact The Pro Agent Group.
Step 4: The Right Marketing
MAXIMIZING SHORT TERM RENTALS requires maximum exposure on all of the major vacation rental websites like HomeAway/VRBO, Airbnb and FlipKey/TripAdvisor. To achieve this investors have 3 options to choose from to implement the short term rental marketing of their investment home –
1) Property Manager
2) 3rd Party Marketing Firm
Property managers normally charge 15-25% of each rental ($6000+/year). 3rd party marketing firms normally charge 10-20% of each rental ($4000+/year). Self-marketing will cost $500-$1000/year.
If you have the time and can quickly respond to inquiries, you should handle your own rental marketing and save on your marketing costs.
If you are not able to handle your own rental marketing . . .
Contact The Pro Agent Group – They will be your best option because their short term rental marketing is very effective and their smaller commission allows a good profit to be made. Your investment home’s marketing cost will be ~11%, which includes all listings’ costs plus your investment home’s own website. The marketing also includes a profit goal each year based on a pro forma. You will be updated regularly regarding the progress toward the goal.