Vacation rental homes are a great investment. A regular home to visit during vacations, without using someone else’s bed sheets, and have other people pay for it? What’s not to like? The benefits can be numerous, but you want to make sure you know what you’re getting into before taking the plunge into purchasing an Outer Banks vacation rental home.
Bank on two mortgage payments
The allure is there: buy the house, hire an affordable mover, furnish it, rent it out when you aren’t there, make your mortgage payments on someone else’s dime! But what about the dead seasons in OBX? What about fluctuating renters markets? Be sure you can afford the extra mortgage payment during those stretches where the house may sit empty. Also, get pre-approved for a mortgage before you engage with an Outer Banks Realtor. Many real estate agents will tell you to do this even before you start looking at properties. This lets you know exactly how much you can afford.
Know all the costs involved
Owning a vacation rental home is more than just the mortgage. Like a traditional home, you’ll need to pay for utilities, property taxes, HOA or condo fees, homeowners insurance, and any other fees from the city. There is also the cost of furnishing the home and upkeep, which is why you need a reputable company like Air Handlers working on your home. Running a rental property comes with its own costs, including any listing fees, a cleaning service to clean between tenants, pest control, and a property manager, if you choose to use one. Create a budget before you start your Outer Banks home search so you don’t get in over your head.
It’s also important to know that rental income is taxable and applicable to any state and federal tax laws.
Check the Condo & HOA rules
Some Outer Banks condo and homeowner associations may have stringent rules for rental properties, or disallow them entirely. OBX Resort properties may only allow access to those on the deed. Before committing, be sure to check all of the contracts and requirements, otherwise your rental income property will end up costing you more than it’s worth.
Plan for emergencies
If you won’t be able to visit the home often, have someone who can. Not only will this protect your home when it’s vacant and stave off thieves, but it will protect you from any household emergencies. Small water leaks or busted AC units can turn catastrophic if left unchecked. Any repairs need to be handled quickly so you can keep the property on the rental market.
Make a rental business plan
Advertising is everything in the rental market. You’ll need great photos of your property, a service to take payments, and a means to advertise your home. Websites like Airbnb and VRBO have made listing easy, but sometimes having a professional company can take the stress off and are worth the investment. Also, make sure you hire the right management company for your rental property. The property management of your home is about more than just revenue. Marketing, maintenance, and overall care for your property are crucial when you are an absentee owner. Enjoy the peace of mind knowing that there is someone making sure frozen pipes or a leaky roof are noticed and taken care of quickly.
Make sure OBX is the spot for you
It’s important to know you’ll want to visit enough to make the purchase worthwhile. The Outer Banks are a great area to vacation, with tons of things to do and great beaches! We love the Outer Banks in North Carolina, and before you settled down here, you should, too. Be sure this is definitely the area for you before making such a large financial commitment.
Once you decide to buy your rental home in the Outer Banks, give Air Handlers OBX a call for all of your OBX Heating and Cooling needs!
