Ocean Front Vacation Rentals

[Mike O'Connor]

Hi all - My extended family and I are currently on a week long vacation in Garden City, SC (south Myrtle) and are all staying in an ocean front beach house (extended family is here, so we all pitch in to make it feasible). As we were looking for the house we wanted to rent, I was reviewing the weekly rental costs and, to put it simply, it isn't cheap.

So, my question is... does anybody focus on vacation rentals, specifically beach front rentals? Do the numbers make sense? While the weekly rental rate is high (even in off season months), I would imagine that the costs associated are also extremely high... insurance, property management, maintenance, repairs, etc. I know, from our personal experience, that vacation renters are also very needy and expect everything to be perfect. Also, I know that they are fully booked in the summer months, but what does vacancy look like in the winter?

If anyone has perspective on if the benefits outweigh the costs, I would love to hear it!

Mike

[Micki M.]

@Mike O'Connor

to answer your question, yes there are people who focus on vacation rentals and it's just like any other kind of REI, you run your numbers and make your money when you buy. There are also a lot of people who want to own and use a VR and rent it out to offset the cost so they can afford it. If you're just looking for cash flow, VRs have higher income potential but are also high maintenance and have pricier management so may not be the top choice.