Good afternoon my fellow Millionaire Buddies. How is your day going I hope it going as good as Alex and my day has before I start the blog for today yesterday I blog about depression because that what my family has been dealing with a lot but every day is a new day. Treat every day as a new opportunity to learn and grow. And I would like to also thank you for the support that you have been with my blog and I am working on my newest Ebook called ” Homeowners” And if you are a homeowner and looking for way save money then this is the book for you. Available at WWW.payhip.com/treasuredinkblots.
So let talk about a different way of making a little extra money using your home. Among the joys and perk of owning a property in the state called Vacationland which is the state, I live in MAINE. Which mean during the summer month we see a lot of people traveling in the which is an amazing opportunity for a homeowner because these visitors are willing to shell out for a stay in your home.
Let me help you capitalize on your asset.
So how do you rent your Maine Home if you ever been to Maine then you know how hard it is to resist the call of the Maine Getaway: the busyness of the coastal village in summer of the peacefulness of a cabin on a western lake, the quietness it broken by the call of the loon.
Maine Vacationland is the most enjoyable due to the hotter-than-ever short- term rental market right now, due to a large number of peer-to-peer rental companies.
So Airbnb released its report that their company brought more than 450,000 guests to Maine in 2018- result in a total of $66 million in supplemental income for the Maine homeowners.
At the same time, there are other local rental agencies are also raking in good money.
According to the group called Vacation Rental Professional of Maine, there are 93 such agencies which are raking in a rough $420 million per year in tourism dollars for the state.
So now your thinking that you may want to be able to tap into this world whether it to help them cover the cost of a dream summer cottage, or bankroll your future retirement home, or to help build your year-round nest egg opportunity awaits.
I CAN NOT STRESS THIS ENOUGH MAKE SURE YOU DO YOUR HOMEWORK FIRST.
So keep reading to get the information on how to start.
Decide what kind of listing you want
So unless you have a crap ton of time, and large network or a lot potential renter, you’ll need help managing and marketing your Home.
You can go local – So if you like the perks of renting your place without a lot of work every day. So what if you live away for your rental property or are you just simply too busy. So this option allows you to be able to work with a local agency will be very ideal. So get some information on the agency because their service will vary. But you can expect that agency will be able to advise you pricing and preparing your home for the listing from taking the photos and do the market the house online; screen and help book potential renters; manage maintenance and cleaning duties, and helping to handle the financial , including filing state taxes and help preparing accounting paperwork.
Most local agent also may have the option of add personal touches to make the guest feel right at home from doing a thing like leaving a bottle of wine or fresh cut flowers in the house to answering calls about the best place to rent the kayak or the yummy tasting lobster.
The local is the selling point that can’t be overstated, and it not just for the charm factor. ” They are there to check and keep eye on the thing,” They are also there to cover the emergencies, which can be a lot reassuring if your thousands of miles away and the water heater is not working or the light are not working.
There are a few agencies that due keep full maintenance stuff during the season, others rely on a few local pros that they can trust to pick up the phone even on the busy holiday and weekend.
There is nothing worst then someone calling and calling and no one answer the call. But getting a good service does come at a price. You expect a commission on the rental income ranging from 15 to 35 percent or higher.
There is the option that you go online if you are able to be more involved in the process of renting out your home if you are living close by your rental.
A peer-to-peer rental marketplace might the right place for you. Some of the bigger names, in addition to Airbnb, include HomeAway and VRBO that is own by Expedia and Flip key, a TripAdvisor company. I mean if you think about it a little hard to beat the exposure these platforms provide.
Ask said by the manager of public relations Alison Kwong who manage HomeAway, stated that listing thought local agencies are often viewed better because the travel is already familiar with the local area surrounding the area, but when listing on HomeAway is view by millions of travelers from around the world.
So if you are going with the online route, it very important to find the right match. Airbnb provides them self on community building, and guest host interaction and offering a wide range of stay option that may include short two-and three day rentals and shared living space.
HomeAway and VRBO know to deal with unhosted which means the homeowners are not on the premises whole-home rentals which provide a two for one deal benefit which automatically separates listing from other sites to the other.
FlipKey offers private rooms and whole properties that are view by a broader range of travelers since TripAdvisor also allow restaurant and many more.
Stop worrying about the pricing because the most company have the resource to assist with pricing your property and are trained to make a successful listing; One like Airbnb and HomeAway will collect Maine state taxes and collect other free.
Commission range from about 3 to8 percent of booking fees (HomeAway and VRBO offer a $499 annual price subscription option starting at $499 in lieu of booking profit so, in the theory, you keep more of your profits, but just because you are making profit you need to keep in mind there are going to be .
You can do both with so much online competition from online home-sharing companies, the local agencies are scrambling to keep up with the times.
Make sure you do your homework like knowing what the policy is for cancellation policies that allow for a full or partial refund within a certain time frame of the rental agreement. There are times when it doesn’t sit too well with the Maine market place.
Think about it this way if you have a house for rent in the summer and it be has been booked for about 8 weeks the chance for recovery are slim to none.
Also, keep in mind that are a lot of national rental agencies like Turnkey and Vacasa they have platforms that function just like the rested of the site providing access to cleaning and maintenance, but advertise via a partnership with all the high booking sites, that way your listing is seen by millions of people what a dream come true for author and blogger right .
I got a little off track now getting back to the blog these sites offer a little lower commission about 18 percent lower than the local agencies usually can.
There are a lot of reviews that are mixed feeling because this could be the fact the company is from away lack the base knowledge and because they are working their tail off to standardize the industry that in Maine.
Should you allow pets – So in order to protect your self from unexpected damage from the animal just make sure that the rental agreement spells out the rules: like no smoking in the house, limiting amount guest, the number parking spot for quest parking, limited pets or no pets.
There is the time when allowing animal is a good idea like if the location is less them an ideal spot because Maine is an ideal spot for vacation spot because of it a dog-friendly so if you banning could cost you a lot of potential customers. The best part is allowing the pooches to stay at the rental area you will be able to charge a little extra fee typically between $100 to $300 per week for the more in-depth cleaning between renters. and always remember it the law you must allow service animal.
Do your research knowing the law – Like it or not the surge in short- term vacation rentals has led to a very bad backlash across the country in an area that is transient populations in the residential communities is having some trouble because of there competition with the local hotels, inns.
So consider the others cost Well for starters, lodging sales taxes in Maine it is a 9 percent and you or your agent can pass the expense off to the renter but you need to remember it for your balance sheet. Also, check with your town or city to see if there is a registration fee this typically $100 to a few hundred dollars annually for your property.
A standard home owner’s policy isn’t going to cover damage and liability that come along with renting. There is some company that does offer a short -term rental riders on the existing plan or you might need commercial coverage.
A website like Airbnb offers free damage protection and liability insurance your insurance carrier will help be able to help you decide what coverage is adequate for your needs.
Make sure you fact in the cost of keeping the house up to code and keeping up with a housekeeping and maintenance staff if you are not going to the hiring agency.
You might need to pay a flat rate to keep the local vendors on retainer or pay by the task basis and never forget the trash pick up.
Then there’s the cost of reinvesting in your property just like any business would need. I recommend that all homeowners take at least 10 percent of the money they bring in and place it back into the rental property each year