For the last couple of days, we have been talking about how to buy a successful vacation home rental income property in Estes Park that will generate the most amount of income possible.
Here are 4 common mistakes buyers make in the process of buying a vacation home rental property:
- They Forget the Cost of furniture. – The cost to furnish the property after you buy it can be expensive. Be careful you don’t buy a lot of furniture on credit while you are trying to qualify for a mortgage. An easy way around this is to look for properties that include furniture in the sale.
- They underestimate the work necessary to operate a successful rental property. – There is a lot of work involved in managing a property including cleaning, marketing, answering rental inquiries, and more.
- They don’t check the Covenants, Rules and Regulations. – Double check the association documentation and meeting minutes for restrictions on rentals. Some single family neighborhoods and condominium developments do not allow short term rentals.
- They don’t know about the Municipal Code Restrictions regarding vacation homes. – Any vacation home rental property within the Estes Valley Zoning district is subject to the municipal code restrictions. Highlights of the code include needing to buy a business license and restrictions on the total number of people that can rent out a property at one time. For more information, here is the municipal code specifying the rules and regulations regarding vacation rental properties (downloaded November 2010).
Are there any experienced vacation home buyer’s out there who would like to share a mistake they made that I might have missed?