Those who fall in love with travel homes often go to the trouble of buying one themselves. Taking out a second mortgage and facing a world more of home responsibilities away from their place of residence means paying for it with separate means.
Pittsfield, MA -- (SBWIRE) -- 04/12/2013 -- Some prefer to rent out their second homes to help them pay the costs. The option is lucrative, and can even boost income, but the prospect of sharing with strangers is understandably awkward. Real Estate Yogi would like to reassure those in doubt that it is easier than it sounds:
- Determining Marketing and the Market
- Property Management
- Payment and Contract
- Handing Over Control of the House
Determining Marketing and the Market
Considerations for renting a home include aspects of the local market. Is the home close to attractions? Schools? Ski resorts? What is the rental range of the market? What about the size of the home? A reliable, experienced local real estate agent who can help figure out the local market. In their own research, buyers can find general price ranges on rental websites. With mortgage, taxes, fees, utilities, insurance, maintenance and marketing fees, there is a lot to factor in to rental price.
Property management is another important consideration when buying a second home to rent out. Many hire realtors or management companies to attend properties. The service is worth 8-10% of the rental price, covering all aspects of the home; property, house and renting. Since home and homeowner are often far apart, it’s important to have others around for attention.
Payment and Contract
When buying a second home to rent, the house must be officially determined to be a second home. If the home is owner occupied less than two weeks or 10% of the time that it is rented, it is considered an investment property. This determines the manner expenses are deducted from payments.
To solidify renting terms parties must form a rental contract. The contract includes information on specifics of the home like fees, dates, and rules.
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Handing Over Control of the House
Homeowners must be comfortable sharing their space with strangers. Most would prefer their friends, but holding out for familiar renters is bad business. There are simple ways to proof ones house from contact with strangers. For those buying a second home and renting out the first, buying items solely for the tenant and locking away remaining possessions, especially valuables, establishes solid boundaries.
Real-Estate-Yogi.com is a web help resource for homeowners located in Pitts field Massachusetts. They have 260,000 professionals available to assist with mortgage and rental issues. Call 800-987-1397 for a free consultation.