3 Strategies That’ll Make Renting Your Michigan Vacation Home Easier
Owning a vacation home can be a lovely getaway for you and your family. Recently however, vacation homes owner have resorted to renting their properties in order to make some extra money from their investment. Especially in a place like Michigan, you can start your own little business and give tourists a great, cozy, place to stay. There are several steps you should take before you start renting your vacation home. If you want your rental property to sell successfully, you’ll have to set it up like a business. Advertisements and a strong online presence will be essential. And with a number of strangers coming in and out of your vacation home, you’ll want to be sure your tenant are good candidates who will take care of your property just like you would.
Run Your Rentals Like a Business
Renting out your vacation home can mean letting your friends stay at your property for a weekend or hosting different families from around the world every day. The key is to run your rental as a legitimate business. This includes figuring out how to account for taxes and deductions on your rental. For example, renting your home out less than 15 days a year doesn’t count as income, so you don’t have to claim that as income on your taxes. However, anything over that does require income tax to be taken into account. As with any matters involving the IRS, be sure you are keeping tidy and up to date records. The legal requirements for renting a house can also be tricky. Some areas won’t allow long term rentals or will require an occupancy tax. Make sure you are up to code with all the areas in Michigan and what each cities limitations are.
You’ll also want to have good homeowners insurance for your property and a good maintenance team. Having a reliable staff to help you look after the place and advertise your home will set you apart. Anything you can do to provide an easy and carefree experience for guests will increase the value of your rental.
Most vacationers explore their choice destinations online. While researching things to do on Mackinac Island and famous sights of Michigan, they will also be looking for lodging on their travels. Therefore, in order to rent your property, you must have a unique and exciting way of marketing it. What packages can you offer that others can’t? If you include something like a wi-fi package or tempurpedic beds, you will automatically make your home more desirable. The key is to find a target audience and market directly to them, whether it be college spring breakers or families from the Midwest. Word of mouth can go a long way in marketing. If you provide a good experience for one customer who gives you a good review, that will draw in more. Find a way to connect your property to the community. By selling an experience, people see the purchase as more of a getaway and a new memory to be created rather than simply a place to sleep on vacation.
Solid Renter Agreement
When it comes down to it, you know you are ultimately responsible for your property, but tenants can be unpredictable. You want to come to the relationship with set expectations of how your property will be managed when it is occupied by tenant. Screening tenants through a free rental application will be easy for prospects to fill out and give you peace of mind that your property will be secure. Set limits on how many people can stay or if pets are allowed. Think of things that could go awry with your property and protect against them early. Most tenants will understand why these rules are in place, and they will be the best way to keep yourself and your real estate protected.