Multiple streams of income are essential, and renting out real estate properties is a classic investment venture. Lake Homes Realty’s CEO, Glenn Phillips, shares 4 risks to consider before buying a lake home to rent.
1. HOA Rules: Relying on the homeowner or real estate agent to communicate the HOA rule can lead to a misunderstanding. To ensure you have the most up-to-date information, contact the HOA directly.
2. City and County Laws: Similar to HOA rules, the city/county themselves may have restrictions you need to be privy to before you invest in a lake home. There may be laws against renting properties that will affect your plans.
3. Zoning Regulations: These potential restrictions can vary depending on which zone of the lake you are in. Again, it’s important that you conduct thorough research on what is allowed regarding short-term rentals.
4. Housekeeping: Reliable housekeeping is very important when conducting short-term rentals. You must take into account the time, money, and consistency necessary to keeping up your property.
Making a profit on short-term rentals is definitely possible, but you have to educate yourself on the risk factors before you invest. Once you are knowledgeable about the pros and cons of renting out lake properties, you’ll secure yourself another stream of income in no time!