However, it also comes with upkeep, bills, and periods when it sits there empty. Many second homeowners are opting to rent out their properties for additional income, but there are pros and cons to both sides. Before you make a decision, here are five important questions to ask yourself. 

1. Do You Want Passive Income or a Personal Retreat?

Renting out your second home means planning around guests, not your own getaways. If you only visit once or twice a year, that might make sense. However, if you’re there every bank holiday or school break, you may not want strangers in your bed. 

Location is also a significant factor. Is your second home somewhere with a seasonal swing, like Park City, Utah? In winter, when skiers and Sundance Festival attendees pour in, a Park City vacation rental management company could easily rent the property short-term for premium rates. Afterwards, it’s yours for the rest of the year.

2. What Are the Local Rules and Regulations?

Before you decide what you want to do with your property, you need to figure out what you can. Some cities require a license, while others limit the days you can rent annually. If your second home is governed by an HOA or part of a resort, you may face even more restrictions. Make sure you understand the rules before listing, otherwise, you could be in for some hefty fines.

3. Who Will Handle Guests, Maintenance, and Marketing?

You’ll need someone to turn the place over between guests, manage key handovers, respond to guest questions, deal with any issues, and generally keep the property in good repair. If you don’t live nearby, managing this from afar can be a huge headache. You may prefer to use a full-service vacation rental manager; just remember to factor in their fees when calculating income.

4. Have You Run the Numbers?

The idea of passive income sounds like a dream, but don’t forget there are expenses involved, too. Maintenance, cleaning, insurance, platform and listing fees, and taxes all add up. This is especially something to be aware of during off-season months, when bookings may not be consistent. 

5. Are You Ready to Be a Landlord?

Taking on the responsibility of being a landlord is a big deal. Things will inevitably go wrong. Guests will leave a mess, appliances will get broken, and you’ll need to be ready when they do. If you’re not organized, a rental property can quickly become a source of stress, but if you’re organized and have solid processes in place, it shouldn’t be too much to handle. 

Endnote

If you’re thinking of renting out your second home, a lot of it hinges on several factors. How you currently use the property, the regional rental market, profit potential, and how much extra energy you’re willing to direct to it all come into play. Before jumping all in, do your due diligence, be realistic, and seek advice from a local expert to see if the rental life is right for you.