Vacation & Other Short-Term RentalsThis Is A Summary Page Landlords in seasonal vacation markets often find that they can get the same amount of rent for a three-month winter or summer season as they can get if they rent the same property year round at market rents . Or, they may have a personal vacation property from which they wish to generate some extra revenue. Special ConsiderationsVacation and other short-term rental properties have unique potential problems because: 1. Rental periods are short 2. A new tenant may be scheduled to come in immediately after the scheduled departure of another tenant 3. It is almost always necessary that a short term rental be completely furnished 4. The landlord must usually keep most, if not all, utilities on in his own name. 5. The property is usually located at some distance from the owner's permanent residence.
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These unique characteristics create concerns for the owner and/or property manager in addition to all those that apply to longer-term unfurnished properties.
Managing your vacation home as a rental is much easier and less time-consuming than many might think.
Buying a Vacation Home
Finding Tenants
Selecting Tenants
Property Inventory Lists
Tenant Screening & Deposits
Utilities
Insurance
Maintenance & Repairs
Cleaning
Keys, etc.
If you're buying a vacation home research your destination town thoroughly for details such as average household income, crime rates and more. If your purchase is depending on how often and for how much you can rent the property, be sure to research the market.
There are numerous ways to find tenants. Included are listing your property using one of the many online services, various types of print media, newspaper ads.
A significant advantage of online listings is that you can maintain better control of who stays in you home compared to leaving it up to a management company.
Short-Term rentals almost always include furniture, appliances, towels, linens, kitchen utensils, cleaning supplies, TV(s)/radio/VCR/DVD/CD-players, washer/dryer/vacuum cleaner, patio furniture (perhaps including a gas BBQ), and all the numerous other items that one would normally expect to find in and about the average home of occupants having the tenants' standard of living. In other words, the tenant brings his clothes, toys, toothbrush and buys his food. Even certain staple food items (e.g., salt & pepper, sugar, catsup) and certain sundries (e.g., paper towels, toilet paper, detergents) may be provided by the landlord.
In addition to the fact that a lot of personal property items, many fairly valuable, are usually provided with a short-term rental, there are other issues that are important, issues that are not factors with a longer-term unfurnished unit.
Utilities
In view of the short rental terms and the expense and hassle of repeatedly turning all the utility services on and off, the owner must usually provide telephone, CATV, electricity/gas, water, trash removal, and any other necessary utility service in his own name. The normal costs of these services, which may vary by the season, must be included in the basic rental rates. However, the property owner should also try to avoid unexpected expenses for any service that could vary significantly depending upon usage. This is particularly important with long-distance telephone service where the potential expense is almost unlimited. Your tenants may have friends in Iran, Russia, or Japan or may like to call 900 numbers for psychic readings, phone sex , participate in TV polls, or charge telegrams and other items to your phone account.
Insurance
Although most insurance companies insure rental property, you must be sure that your policy does not have any exceptions in the event your seasonal property is sometimes vacant for long periods. You must be sure that your insurance covers your property in view of the way it is used including vacancy issues and the percentage of time the property is rented.
Maintenance & Repairs
Be sure to provide a list of maintenance vendors that the tenant can call in the case of emergency if he cannot immediately reach you or your agent. You should at least provide vendors for the plumbing and heating/cooling trades. It is also useful to provide tenants with the name and phone number of a local agent that can be contacted prior to calling vendors in such emergency and in non-emergency situations when you cannot be reached.
Cleaning
Even though you may cover the issue in a rental agreement, it is difficult to ensure that the departing tenant leaves the property in the condition that you want and need for the next tenant. Of course, you must, as with any vacant rental, insure that showers, tubs and toilets; kitchen sink, stove/oven, refrigerator, microwave, and dishwasher; tile/vinyl flooring and carpets; and numerous other things are clean. But, with a furnished short-term rental you must also insure that bedding and towels have been washed; that beds have been made; that dishes have been adequately washed and put away; and that there is an adequate supply of toilet paper, laundry & dishwashing detergent, and other cleaning supplies.
RHOL provides a tremendous amount of information about dealing with various cleaning problems .
Keys, etc.
The owner or manager must also take steps to avoid the loss of keys and garage door or gate remote controls. You should make it clear where the tenant is to obtain or find these items upon arrival and what to do with them when departing.
The above topics are discussed in much more depth
on our members' Vacation & Other Short-Term Rentals page.