Thinking about turning your second home into a vacation rental? At Cascadia Getaways, we often get this question—and the answer really depends on your goals, time, and comfort with managing a rental property. This article breaks down the pros, cons, and key things to consider, so you can make an informed decision.
The Pros of Turning Your Home into a Vacation Rental
Extra Income
One of the biggest perks is the potential to earn extra income, especially if your home is in a popular destination. Renting it out during peak seasons can bring in a nice profit which can help to maintain your home or upgrade over time. If your family uses the home, this is a great way for someone else to pay for improving your home. Learn how Cascadia Getaways maximizes your revenue!
Personal Use Flexibility
You still get to enjoy your vacation rental. That means you can use it for family vacations, holidays, or weekend getaways when it’s not booked. Just make sure to block your dates in advance!
Tax Benefits
In many cases, you can deduct certain expenses such as utilities, cleaning, repairs, and even property management fees. Talk to your accountant about what applies to you.
The Cons of Turning Your Home into a Vacation Rental
It Takes Work
Managing guest bookings, cleaning between stays, restocking supplies, and responding to guest inquiries can be time-consuming. Even more so if you don’t live nearby. Cascadia Getaways can save you hours per week while avoiding late night emergencies!
Upfront Costs
You may need to invest in furniture, decor, and amenities. Don’t forget professional photography and a well-written listing to attract guests. Cascadia Getaways can help you make economic decisions with setting your home up and covers the cost of locks and photography!
Wear and Tear
More guests mean more usage, which leads to faster wear and tear on your property. Regular maintenance is a must. Cascadia Getaways has a damage protection program to cover damage and a maintenance program to help keep your home in tip top shape!
Financial Considerations for Vacation Rentals
Before listing your home, estimate your potential income and compare it to your expenses. Include costs like mortgage, insurance, utilities, cleaning, supplies, and platform fees (Airbnb, Vrbo, etc.). We cover utilities, supplies and platform fees!
Time and Effort Required
Vacation rentals aren’t passive income. They need regular attention, especially if you want good reviews and high occupancy. If you have a full-time job or other responsibilities, be sure you have the capacity to handle it or consider hiring a manager like Cascadia Getaways.
Pros and Cons of Using a Property Management Service
Hiring a property manager can be a game-changer. They handle bookings, guest communication, cleaning, and maintenance. The trade-off? They usually charge 20-40% of your rental income. Make sure to ask questions to understand what you get for the management fee and what you still have to cover.
At Cascadia Getaways we cover many expenses that would otherwise land on a self manager’s plate. We also earn most homeowners 30% or more than self managing or another manager. If you want to learn more, schedule a no pressure conversation. We love to educate people on the industry we love.
Legal and Regulatory Considerations
Before getting started, check your city’s short-term rental rules. Some places require special permits, licenses, or even limit the number of days you can rent. We can help you through the permit process. Also, look into HOA rules and your insurance coverage. You likely need to upgrade to a policy that covers vacation rentals or use a provider like Proper.
Preparing Your Home for Renters
- Remove personal items
- Add guest-friendly features like reliable Wi-Fi, smart locks, and a well-stocked kitchen
- Invest in safety: smoke detectors, fire extinguishers, carbon monoxide alarms, and clear emergency instructions
The Bottom Line: Should You Turn Your Home into a Vacation Rental?
If you’re looking to generate extra income and your home is in a desirable location, a vacation rental can be a great opportunity. But it’s not for everyone. It takes effort, planning, and ongoing involvement. If you’re unsure, start with a trial period or consult with a vacation rental expert like Cascadia Getaways.
FAQ: Is It Worth Turning My Second Home into a Vacation Rental?
How much money can I make from my vacation rental?
It depends on your location, home size, amenities, and how often it’s rented. Research similar listings in your area to get a rough estimate. Cascadia Getaways can assist with a rental projection!
Do I need a special license to rent my home?
In many places, yes. Always check with your local city or county for regulations. Some areas also have HOA restrictions. Cascadia Getaways can assist with permitting and files your transient occupancy taxes for you.
What should I furnish my rental with?
Think like a guest: clean linens, basic cookware, fast Wi-Fi, smart TV, and comfortable furniture. Add local touches for extra charm. Make sure every guest has something to enjoy at your home from a hot tub for the adults to games for the children. Don’t forget safety! A fire extinguisher for every area there are open flames, interconnected smoke detectors and areas free of trip hazards.
Is it better to manage it myself or hire someone?
If you have the time and live nearby, managing it yourself can save money. But hiring a property manager can save stress and improve guest experience. You likely didnt buy your vacation rental so you could have a second job and a professional can put more attention on your home.
What platforms should I list my property on?
Airbnb and Vrbo are the most popular. You can also consider Booking.com or niche travel sites for more exposure. Cascadia Getaways has a list of the most common rental sites broken out here!
Need help turning your second home into a vacation rental? Cascadia Getaways offers expert guidance, management services, and a local touch that guests love. Contact us today to learn more!