Issue link: https://hub.associaonline.com/i/1355341
SHORT-TERM VACATION RENTAL INVESTMENTS While there are many personal and financial advantages to owning a short-term vacation rental in an HOA, keep in mind that some association's governing documents prohibit short-term rentals. When you're looking to buy a short-term vacation rental property, know your rights as a buyer, get to know the area, budget properly, and, most importantly, review all the governing documents ahead of agreeing to purchase. THE BENEFITS: • Quick turnaround for rentals. These short-term rentals are in high demand because they offer all the conveniences of home within a popular tourist destination. During the high season, these properties are usually booked. • Ownership benefits. Owners can occupy their rental anytime, but it makes more financial sense to take advantage of everything the property offers during the off-season when rental potential is lower. • Location and amenities. Short-term rentals are often located in a desirable community near a city's attractions and feature other offerings like pools, restaurants, and playgrounds. • Rental income sustains investment. The income a landlord receives from renting out their property is usually enough to sustain the investment, if not profit from it. • Rules and regulations. With set association rules in place, communicating these regulations with guests can help keep disruptions to a minimum. THE CHALLENGES: • Constant maintenance. Frequent guest turnover means that you must visit the property often to prepare it for your next set of renters. • Maintaining healthy relationships with the board. Residents that come and go typically aren't interested in helping the HOA thrive, and that can mean a disregard for noise complaints, security restrictions, and more that can cause conflict with the board. • Accessibility. Short-term rentals are often in different cities, states, or even countries from the original owner, making it difficult to get to in an emergency. • Finding qualified contractors. Buying a rental in an area you're not familiar with can pose a problem when looking for skilled labor. • Renter verification. Short-term renters don't typically take care of your home the same way you do, and you don't want to lose value when you're trying to turn a property around.