The notion of Vacation Rental Investments has attained substantial momentum in recent years. Investing in a vacation rental can be a lucrative source of income.
The average single-family rental home gross rental yields (gross rents/sales price) returns around 9% GROSS. You can expect a secured investment in a vacation rental to return 7-14%, NET. In addition, the following reasons are why vacation rental investments are trending in the real estate investment market;
- Appreciation-Many vacation rentals are located in attractive areas and markets. New Braunfels is a top vacation destination for not only Texas Families, but for families all over the country. Vacation rentals in the area have appreciated dramatically over the recent years and will continue to do so based on the location and the demand!
- Dual Purpose- As a vacation rental owner, you can enjoy the perks of owning a vacation rental while generating income and building equity!
- Tax Benefits-A vacation rental investment is considered a second home. Taxes may be tax deductible including mortgage interest, utilities, management fees, etc. Similar to any other income properties, you can claim tax deductions on the costs of running a rental business related to vacation rental homes.
- Less Risk- Every real estate investment assumes a certain degree of risk. In comparison to other real estate investments, when you purchase a vacation rental in an attractive area, the guest traffic and rental income is going to be consistent. During “Peak” season months you can expect 85%+ occupancy rates. During “Off” season months, you can expect steady reservations with Winter Texans, Event and Festival participants, etc.
- Passive Investment- A number of investors pass on the opportunity to invest in a vacation rental because of the beliefs that in doing so, they are taking on a lot of extra work and stress. However, hiring a professional vacation property management company can and will make owning a vacation rental a breeze! A property manager will take care of all the aspects of owning, managing, maintaining, and renting out your vacation rental all the while increasing the return on your investment!
Kara Helta, owner of My New Braunfels Vacation, has been a real estate broker for over 12 years and specializes in the New Braunfels vacation rental investment market. We consider our company to be a one stop shop for purchasing or selling a vacation rental and/or owning a vacation rental. We are here to answer any questions you may have and we look forward to talking to you soon!