4 Reasons Why Vacation Property Owners Should Put Their Rental Fears to Rest

Many vacation property owners would like to rent their home out when they’re not using it themselves. Problem is, they let their worry about the “what-ifs” override the benefits of collecting all that glorious rental income. Let’s take a look at some of the most common objections as to why vacation property owners don’t rent out their homes.

Objection #1: I am uncomfortable with strangers staying at my house.

Perhaps you’re worried about renters trashing your property or stealing from you. This almost never happens.  Even in the unlikely event that it did happen, that’s why you have insurance and ask for a security deposit upfront. And if you rent by owner, you really decrease the likelihood that something bad will happen.

Objection #2: I want flexibility for personal use.

You have complete control over when you rent your home out and when you don’t. You can rent it out during peak season and enjoy it yourself in the off-season. You can live in it during the winter and rent it out in the summer. You can reserve a few weeks out of the year for your own use and rent it out the rest of the time. You can even rent it out for two weeks without having to claim that income on your taxes (IRS Publication 527).  Except in Carmel of course where we have a 30 day minimum.

Objection #3: Financially, I don’t need to rent.
Think about it this way, if you have stocks and they are paying dividends, do you say no thanks to Microsoft? Of course not. So why would you leave real estate investment dividends on the table?

Objection #4: No one would want to rent my vacation home, anyway. 
If you just bought a far-from-luxurious suburban house for $150,000, you might assume that few people would want to rent it. Think again. Look on HomeAway.com and you’ll see listings for homes that range from rustic cabins to majestic castles.


Here are my latest picks for great buys:
3538 GREENFIELD PLACE, Carmel 93923 High Meadows $1,750,000 Beds: 4 Baths: 4 (3/1) 
Dramatic Ocean/white water views, Point Lobos, Monastery Bay, Santa Lucia Mountains, to Carmel Valley!! Surrounded by windows, the living/dining room and the master bedroom have "knockout" white water views(on a sunny day)!  Beautifully updated with superior materials. Wood floors throughout, skylights, loads of windows, guest quarters or 4th bedroom and bath, meandering paths, front patio.  SqFt: 2,700 Lot Size: 9,583 Sqft

19652 WOODCREST DRIVE, Salinas Monterey Highway MLS#81048705 $1,075,000 Beds: 5 Baths: 4 
Gorgeous, spacious home behind the gates of Prominence in Las Palmas II. 2 story & upgraded thru out. Gourmet chef's kitchen w/SS appliances, granite, breakfast bar & large pantry.  Lovely master suite w/balcony, fireplace, huge walk in closet & spa-like bath plus 4 large bedrooms. Downstairs bedroom & bathroom for guests.  Backyard has sprawling lawn & fireplace perfect for entertaining or staying in!  SqFt: 4,307 Lot Size: 49,222 Sqft

4970 PENINSULA POINT DRIVE, Seaside MLS #: 81048624: $550,000 Beds: 3 Baths: 2 (2/0) 
A beautifully upgraded & desirable Avocet Model with custom Travertine stone floors, tray ceiling in main bedroom with French doors to lovely paver-patio garden. Don't miss the gigantic walk-in closet in main bedroom. Spacious kitchen with Corian counter tops & molded sink. Stainless steel appliances too. Huge corner lot with "no-work" front & side yards maintained by HOA.  Across from greenbelt.  SqFt: 2,115 Lot Size: 6,037 Sqft

208 CARMEL AVENUE, South Salinas 93901 Maple Park MLS #: 81049400 $399,000 Beds: 3 Baths: 2 
Charming remodeled, spacious home in desirable Maple Park neighborhood. This beauty offers refinished hardwood floors, a quaint dining room with built-in china cabinets, sunny kitchen offering new appliances & granite counter tops, new bathrooms, 2 attics for storage and a well maintained yard with fruit trees. This home won't last long--it's a regular sale.  SqFt: 1,729 Lot Size: 5,500 Sqft

© Patty Ross, KRXA Radio Show #178  October 15, 2010