Why You Should Rent Out Your Vacation Home

Posted by Leland On May - 12 - 2017 0 Comment

Owning a vacation property is a dream for many people. While having a vacation property is great while it’s in use, most people are only able to use their property a few weeks out of the year. If you are not able to use your property regularly, a great option would be to rent it out when it is not in use. Going through a property management company is an easy way to do this. Palmetto Sands Vacation Rentals is a great property management company if you have a vacation rental on Hilton Head Island. There are several reasons why you should consider renting out your vacation property.

Additional Income
The main advantage of renting out your vacation property is that you will receive additional income. Owning a vacation property comes with a mortgage, taxes, maintenance, insurance, and HOA dues. To offset these costs, you could rent out your vacation property. During peak vacation time, many vacation property owners end up earning enough money to completely offset their costs of ownership.

Tax Benefits

Depending on how much you plan on using your vacation property, and how much you plan on renting it out, there could be a lot of tax benefits. The federal tax law provides a number of tax advantages, including depreciation and allowing you to write-off operating costs, if you treat the second home as a rental property. This could also have an impact on your tax liability when the property is ultimately sold.

Keeps Your Home Active
Another advantage of renting out your vacation property is that it helps to keep your property active. One issue that property owners with vacation homes have is that their homes do not run as efficiently when they are not used regularly. Going through long periods of no use, followed by a short period of use, put a lot of strain on home appliances and HVAC systems. By having renters use the property, it will get a consistent level of use, which will extend the lifespan of major mechanicals in your home.

People who choose to rent their properties out while not in use will also receive additional security. Thieves and vandals target properties that are clearly never in use. If your home is constantly dark and vacant, it is far more likely to be broken into. When you have tenants that use the property regularly, and housekeeping staff that comes in after a stay, your home will appear far more occupied and will help to keep thieves away.

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