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Pros and Cons of Vacation Rentals

Woman Enjoying Her Stay at a Sudden Valley Vacation RentalAcquiring a Sudden Valley vacation home can be an attractive idea. It could be your go-to vacation space, but at the same time be a house for rent to cover expenses for most of the year. In reality, anyone who has ever owned and rented out a vacation home will give you details about the nitty-gritty of it all. Owning vacation rentals has its pros and cons. So, before you dive into vacation rental ownership, you need to think about all that comes with it.

Pro: Extra Income & Tax Breaks

A big benefit of owning a vacation rental is the extra income you can earn from renting it out. Depending on whether you choose to rent it out short-term (days or weeks at a time) or long-term (several months at a time), you can arrange it in such a way that the property pays for itself.

Con: Another Mortgage Payment & Expenses

Of course, buying a vacation rental comes with a mortgage payment, insurance, property taxes, utilities, and other expenses. These details have to be taken into account when deciding on a vacation rental. Additionally, financing for an investment property can cost more since lenders often require a larger down payment and charge higher interest rates on second homes.

Pro: It’s Yours to Use

A vacation home is at your disposal — since you own it, you can do whatever you want with it. This is a good idea if you frequently visit the same location without wanting to stay at a hotel. You can also use the property for business or personal events, meaning you also won’t have to pay to rent event space.

Con: Marketing and Screening Tenants

If your vacation home is not being used, you’ll need to market it to potential tenants. Marketing can be a time-consuming task, as is screening potential tenants. This becomes more difficult when you rent the home out for days or weeks at a time. Due to the high turnover, it will be hard to find tenants to rent the home year-round.

Pro: Building Your Retirement Fund

One great way to contribute growth to your retirement fund is to invest in rental real estate. Rental property owners often include their rental income or property sale into their retirement plans. Real estate isn’t like the volatile stock market or savings account that offers little interest — it gives you safety and growth, unlike other investment modes.

Con: Property Management Takes Time

If you want to taste the reward of owning a vacation rental, you will have to plow through years of property management. It’s more of a challenge when you have to keep your property clean and maintained by yourself, or if your vacation rental is not close to your primary residence. A lot of vacation rental owners are taken aback by the time required to prepare for each new tenant, something that rarely happens with long-term residential rentals.


Owning a vacation home and renting it out can be a great investment. Getting a good property management company will save you from the most common of mistakes, though. Would you like to learn more about smart approaches to managing vacation rental properties? Real Property Management Teyata has a top-notch team of Sudden Valley property managers to help you navigate the market as well as keep your vacation rental profitable. Contact us online or call at 206-861-5525 today!

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