Buyers Tips

Pros & Cons of Vacation Rentals vs Long Term Rentals – Coeur d’Alene Real Estate Investors

Pros & Cons of Vacation Rentals vs Long Term Rentals – Coeur d’Alene Real Estate Investors

Michelle Garcia, Realtor with Windermere Coeur d’Alene Realty interviews Cheryl Lantz, owner, Vacation Rental Authority.

We discuss local Coeur d’Alene Real Estate and the ups and downs of vacation rentals, long-term rentals and what investors need to be aware of before buying the next investment property.

 


ShowNotes

Vacation Rentals vs. Long Term Rentals for Investors

 

Long Term Rental Pros

Consistent monthly income

Fairly predictable income & expense

Right purchase cash flows

No furnishing cost

Right management team increases rents & minimizes turnover expense

Lower percentage management fee

Possibility to self-manage

Tenant has upkeep responsibility

Easier to find long term rental properties, not limited to only VR friendly cities, neighborhoods

Very high demand in current market conditions

Less turnover = less attention req’d, set it and forget it

Quick start up, VRs take time to reach potential

 

Long Term Rental Cons

Competitive market to purchase best deals (Seller’s market)

Risk of significant damage between tenants

Increased propensity for wear and tear

Potential of lease violations

Reduced inventory, only certain neighborhoods would work for VR

More weather dependent than LT

Plan on Vacancies

City restrictions, subject to strict code enforcement

Hoa restrictions on VRs

Out of area VR shut down in the off season.

Generally less overall annual income potential

 

Vacation Rental Pros

Right property has significantly higher annual income than long term

Increase in lifestyle with vacation home your family can enjoy

Powerful local management team available

  • Pay for themselves with increased nightly and occupancy (compared to self-managed or competition)
  • Care for guests and property for ease of ownership
  • Low damage risk (Guest damage is paid for by local management company)

Ability to gift a stay at your VR to friends or colleagues

Could include as an auction item for your favorite charity.

 

Vacation Rental Cons

Higher start-up costs in terms of furnishing and stocking

Higher annual upkeep and maintenance costs to hold to hospitality standards

Costs include utilities, wifi & cable

Very time consuming for self-management

Inconsistent monthly income

Unpredictable income & expense the first year

2 years to reach income potential


 

Cheryl Lantz – Vacation Rental Authority

Cheryl Lantz Vacation Rental Authority
Vacation Rental AuthorityLiving my dream as an entrepreneur, business owner and investor in the beautiful northwest, I lead the professional caring team at Vacation Rental Authority. Our mission is to create growth opportunities through professionally managed properties. To this end, we offer residential and vacation rental management services in Coeur d’Alene and the surrounding areas.

Since our founding in 2012, we’ve continually grown and improved services in an effort to best serve our clients.

As a result, VRA developed top notch vacation reservation services, housekeeping, leasing, real estate sales (Professional Realty Services Idaho) and boat rental division each lead by professionals on top of their game. Together, we work passionately and effectively to provide excellent results, continually improve ourselves, contribute to our community and grow the local economy.

Proud recipient of Idaho’s Best Places to Work 2016 & 2017.

Cheryl can be reached at vacationrentalauthority.com

Michelle Garcia REALTOR

Michelle Garcia Realtor Coeur d'Alene Idaho lakecdarealestate Coeur d'Alene Real EstateAs a local REALTOR, Michelle Garcia specializes in Coeur d’Alene real estate and the surrounding areas including Post Falls, Hayden, Hayden Lake, Dalton Gardens, Rathdrum, Harrison, Spirit Lake, Athol and most areas within Kootenai County and northern Idaho.
Michelle helps her clients buy or sell single family homes, luxury real estate, waterfront real estate, multi-family homes and investment properties.
Michelle’s community involvement includes: Board member Habitat for Humanity North Idaho, Vice President Professional Women in Building (PWB), North Idaho Building Contractors Association (NIBCA), Parade of Homes, Women’s Impact Network (WIN), Coeur d’Alene Visitor’s Bureau, and Coeur d’Alene Chamber of Commerce.
Michelle can be reached at 208-699-5350 or lakecdarealestate.com