Have you ever spent your vacations in Ellicott City, Maryland? It's an exciting city full of museums, nightlife, and dining options. No doubt it's going to continue to be a popular city for tourists.
If you've thought about real estate investing in the city, you might just want to bite the bullet now. If you've been hesitant, it's probably because you're unsure if one can profit from vacation homes.
So the question remains: Do vacation properties make money? The short answer is yes.
Here's how you can earn vacation rental income:
Make a Holiday Home
Holiday home earnings can't come unless your investment property feels like a vacation home. The first step to earning money from your investment property is to design it for tourists.
For example, let's suppose you want to target the digital nomad crowd. You'll want to offer high-speed internet in your home. Make sure you do your research on what this demographic wants if you wish to target them.
What if you want to attract families? They'll want a lot more comfortable amenities in the home. They'll want a fully-stocked kitchen, a surplus of bed items, a home entertainment system, etc.
Vacation hosts who know how to accommodate their guests will maximize their profit in the long run.
Vacation Rental Platforms
While they aren't mandatory, vacation rental platforms are often the best way to build a sustainable income from your property. With these platforms, you can often charge higher prices.
Many vacation guests are willing to pay more for a property they find on Airbnb or VRBO. These platforms vet different properties and hosts. They'll make sure to only share the best options with guests. This alone is what leads vacation homeowners to be able to charge more.
As you develop a reputation as a great host, you can raise your prices on these platforms.
Offering Incentives and Extra Services
The final method for making money is by offering incentives and extra services to guests. For example, you can offer to pick up your guests and drive them to your property.
Another option is to offer a service such as homemade breakfast during their stay. Many guests will gladly pay extra if they don't have to stress about cooking.
You can give them a lower nightly rate if they stay for a longer time. If you build a relationship with your guests, you can offer them discounts in the future if they stay at your place again.
Whatever you decide, you should consider using a property management service to help you get started.
Do Vacation Properties Make Money?
Now you know the definitive answer to "Do vacation properties make money?" You can absolutely make a decent profit from vacation homes if you follow the steps laid out in this guide.
You can hire a property manager such as us, PMI Old Line, to help you. We've been in the real estate industry for over 20 years and have helped countless vacation hosts build their businesses!
Contact us to learn more.
