North Georgia, Blue Ridge Mountains, VacationProperties, Investors, Property Management
As a Realtor®, I'm asked quite often by potential investors about buying a cabin and using it as a vacation rental property. Although, I am not in the business of rentals, I am in the business of selling cabins that have potential for vacation rental and can speak in broad terms as to what an investor should think about before making their purchase.
My best advice is for an investor to consult with several local property management companies for indepth information regarding rates, policies, liability and input on what visitors are looking for.
Keep in mind, the local market determines the rates, just like the market determines selling prices. Nice vacation cabins in an area of high desireability, obviously will get premium rates. A cabin needs to be well maintained and have features and amenities that renters desire.
My somewhat short answer for my investor clients is this:
Create a rental property that appeals to a large group of people. Many vacationers who come to Blue Ridge are typically looking for something close to town but still have a feeling of seclusion without having to negotiate a really steep road.
They want amenities like: hot tub, pool table and without a doubt, breathtaking views. Other features such as internet and cellular service are important.
The idea of vacationing in a quiet locale, surrounded by beautiful nature and interesting wildlife appeals to most people
If you, the owner, is not up to the task of managing rentals or you live too far away, you should consider using a management rental company. Managing renters to marketing your property, greeting visitors and cleaning up after they leave are major tasks that might be better left to a property manager. Management fees can range from 20% to 50% of the income the cabin generates. Also, an investor should factor insurance and taxes and what is often overlooked is remittance of sales tax. You may qualify for tax deductions on rental income if you limit your personal use of the home, but you should consult with a tax advisor (not a tax preparer).