You can make a lot more money off a second home than the average owner of a second home does. The average owner of a second home rarely explores all the income generation opportunities available to them. They end up leaving a lot of money on the table in the process.
Here are some creative ways to squeeze more money off your second home:
First, Minimize Costs by Having High-Quality Fixtures
If you rent out your second home, you will quickly learn that vacation homes require a lot more frequent repairs than the average home does. The reason for this is two-fold. First, vacation homes tend to have a very high turnover of occupants and some occupants will not be careful not to cause any damages since they don’t have any sense of ownership of the property. Second, vacationers don’t tolerate low quality or damaged stuff in the homes they are renting. You will, therefore, be forced to repair any damages as soon as they arise.
The easiest way to fix this problem in the long run and reduce your repair costs is to have very high-quality fixtures that can stand frequent usage. You will be incurring a high one-time investment that will lead to much lower expenses in the long term.
Strategically Transition to Longer Term Renters
Primarily renting your vacation home to people staying for a day or two will lead to very high costs. You can reduce your overheads tremendously by targeting people who rent for a week or longer.
It may not be practical in the beginning to do this. Nonetheless, as your property becomes established in the market and as you begin to get a consistent stream of clients, you should gradually raise your minimum stay requirements.
Offer More than Accommodation
You don’t have to only offer accommodation services. There are several services that a typical traveler in your area needs that you can provide.
The services you choose to offer will depend on the needs of visitors who travel to your town. If your vacation home is located in a diving destination, for instance, you can lease diving and snorkeling equipment to your guests. They will definitely get them from somewhere – why not you?
Partner with Local Businesses
Your clients and the clients of local travel businesses overlap. You will be serving someone’s ideal customer. If you enter into a partnership and refer these clients to them, you can get a commission off each referral.
The people you can partner with are as many as there are service businesses targeting tourists in your area. Your guests will be in need of equipment to lease, tour guides, chefs, car hire services, limousine drivers, and various other service providers.
Enter Home Exchange Programs
Owning a second home gives you an opportunity to stay in other awesome vacation homes when you travel and do so for free. You can do this by entering into home exchange programs.
There are great reputable sites that will allow you to connect with other homeowners. To gain access, you will have to register as a member. Some may require a membership fee.
About Living Lake Tahoe
Living Lake Tahoe is a real estate agency based in Lake Tahoe, Nevada. They help people looking to buy, sell, or rent properties in Tahoe navigate the local real estate market and achieve their goals as painlessly as possible. The team is headed by Alvin Steinberg who has over four decades of experience as a real estate agent. Alvin carries a CRS (Certified Residential Specialist) in both California and Nevada.