Owning a vacation home is a luxury that can also be a lucrative investment. Many people who own vacation homes let the property pay for itself by renting it out. It’s a great way to earn money, but it can also be slightly tricky, considering one will be letting strangers live in their home. To get the best out of the investment, here are some common mistakes to avoid when renting out a vacation home.

Taking on too much responsibility
Putting a vacation home up for rent is a lot of work, especially for one person. Outsource the work instead; make use of apps for accounting and apps to fill vacancies to simplify the process. Hire a maintenance crew to clean up after each renter leaves or a property manager to check up on things while the house lies vacant and prepare it for the next renter.

Wrong and inflexible pricing
Pricing is everything. In a high tourist-traffic area, keeping the prices too high could deter potential renters, while low pricing could send a barrage of queries, which will take ages to sort through. Consider the location, the scope of the property, and, of course, the demand. Events near the home, proximity to seasonal holiday spots and famous landmarks all determine the cost of rent. Keeping an open mind regarding flexible pricing will go a long way in determining a constant flow of interested renters.

Not having vacation rental insurance
Short-term rental insurance is great for homeowners looking to rent out their vacation homes. It covers potential liabilities that could occur while the home is being rented out. Standard short-term rental insurance covers theft and liability, guest liability, and property insurance. What short-term insurance does not cover is intentional damage, damage to the guest’s property, and wear and tear. Not having this insurance leaves one open to a lot of liability that could result in hefty payments.

Not considering laws
Laws and by-laws differ from state to state, and these need to be studied well to rent out a vacation home legally. Consult a real estate lawyer to understand the legalities of owning a vacation rental home and the rules, regulations, and laws that could apply when it comes to noise offenses, illegal parking, and garbage disposal. Also, look into the area’s occupancy limitations, procedures, and regulations for registration and tax collection.

Not having a rental agreement
Renting out a home may be a lucrative venture, but it could turn into an expensive one if the rental agreement is not clear and precise. A real estate lawyer can help draw up the agreement in accordance with the area’s codes and regulations to protect one from any kind of liability, unforeseen expenses, or even difficult, unruly renters.

Skimping on maintenance
Maintaining the home and the attached property, if any, will allow for a great first impression. Simply expecting the renters to leave a clean home is not an option, and one must always have a backup plan, like a professional cleaning service, to spruce up the place before the next set of renters arrives. Alternatively, consider hiring a professional property manager to handle bookings, maintenance, and guest communications.

Not focusing on marketing and advertising
The most luxurious homes won’t have any takers if no one knows about them! Get the word out there through listings on booking websites and social media. Create a great-looking profile with vivid, high-quality, attractive photographs of the property accompanied by tastefully written copy to ensure the listing gets the right kind of attention.