Think outside the box when buying investment properties
As travelers ourselves, vacation rentals have become the more popular choice to stay in. They are more common among travelers, especially families. Instead of staying in multiple hotel rooms, families are looking for single family homes or condos to stay in when they travel. The real estate market is always shifting and our mindsets should as well when it comes to real estate investments. There is opportunity in every kind of real estate market. This article written by Henry Moore of Fit Well Traveler provides some insight on purchase vacation rental properties.
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4 Ways Investors Can Find an LA Vacation Rental That is Primed for Profits
Vacation home rentals are becoming increasingly popular with tourists. So, how can you profit from this trend and find the perfect short-term rental in Los Angeles? Use the following tips to help you choose the right neighborhood and streamline your search.
If You’re Thinking About L.A., You’re on The Right Track
You can certainly increase your cash flow and build your investment portfolio with a vacation rental home, but that home needs to be in the right location. So, if you are thinking of buying a vacation home and thinking of buying in Los Angeles, we’ve got some good news for you. As Turnkey reminds, Los Angeles is home to some truly iconic sights, including the Hollywood Sign and Venice Beach, but you may not be aware of just how popular certain neighborhoods, such as DTLA and the Hollywood Hills, can be with visitors. In fact, all of the local attractions and neighborhoods keep Los Angeles at the top of the list of most-visited American cities, which means vacation homes are always a hot commodity.
But You Should Be Aware of Recent Changes to Rental Rules
If you are planning on owning a vacation rental in Los Angeles, you’re likely to have no shortage of potential renters. This can mean a big boost for your rental home profits. If you have a constant flow of guests renting your home, you can also think about increasing your rental rates in the future, in order to maximize your property’s earning potential. To correctly calculate those profits, you will need to keep recent short-term regulations in mind. In the last year, Los Angeles has started to institute new policies that require vacation home owners to register their properties and pay related fees to legally rent those properties out to tourists. These fees tend to be nominal when compared to the potential for profits, but if you want to avoid them, you can also try looking for homes outside of the city.
Vacation Homes in Nearby Areas Can Be Profitable As Well
Buying a vacation rental in Los Angeles will always be a safe bet for investors. Still, you may prefer to purchase a property in a smaller area, or you may be looking to escape recent short-term rental regulations that could make managing your property harder. If this is the case, you should know that there are several locations that are very close to Los Angeles, but far enough away for those looking for a slightly slower pace. For example, you could buy a home in San Gabriel Valley, which is still a part of the metro-Los Angeles area but is not impacted by rules recently passed by the Los Angeles City Council. If you prefer to look in another Los Angeles-area location, you can also check out one of these popular nearby towns, such as Orange or Joshua Tree.
Wherever You Buy a Vacation Home, Management is Key
There are plenty of locations and homes to choose from in the Los Angeles area. To make your search easier, you should find a real estate professional who is familiar with the local market and who can help you find the vacation rental home of your dreams. Once you’ve completed your purchase, though, you may need to find additional pros to help you market and manage it. While it is true that you can self-manage a rental, doing so is likely to take up a lot of your time and resources. So, if you have another job or just don’t want to deal with any additional stress, you should connect with an experienced property manager from the start.
Owning a vacation home in Los Angeles can be a solid investment. Just look for a property and a property management company that offer more than just the basics. Doing so will help your Los Angeles-based vacation rental stand out to potential guests, even in a saturated market. Plus, the right vacation home and the right management can also maximize your potential for profits. "
Written by Henry Moore of Fit Well Traveler
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