With the spring real estate selling season quickly approaching, and summer following right on its heels, many real estate investors start thinking about the prospect of owning vacation rental properties. While these investments can be a way to add income and offer a fun vacation option for your own family, there are a few things that you should consider before you take the leap.

1. In most cases, an income-producing property is an investment in the future. You may want to kiss the summer season goodbye. In our area, we see an influx of visitors in the late spring until the early fall months. Southeastern North Carolina offers up warm summer months and milder temperatures the rest of the year making it a popular vacation destination. One way to ensure that your vacation property succeeds in making money is to give up the summer months to renters. Summer is by far the most lucrative time in terms of rental income. If you had the idea that you and your family would relax seaside in June, watch the fireworks over the waterway in July, and spend August afternoons licking ice-cream cones on the boardwalk, you may want to re-evaluate. It is likely that in the future, after your rental home has paid for itself you will do these things. But keep in mind that a vacation rental investment is just that: an investment for the future. You will most likely spend the first years of ownership giving up summer vacations for those in the less busy months of fall and winter. Don’t worry though, the beach can be fun year-round!

2. You have a few things to line up! When renters have saved their money and booked your property they expect that the house will be clean, in working order, and have most of the comforts of home. You will most certainly need to create a network of people from property managers to cleaning crews and maintenance workers to ensure that your renters have a fantastic time in a fantastic house. By doing so, you are helping your rental property succeed and securing return renters. Most property management companies will guide you in the right direction (for a fee), allowing you to enjoy your own summer vacations without constantly dealing with rental issues. If you live out of state or more than an hour drive, a property management company is a must! At Coldwell Banker Seacoast Advantage we can help you manage your rental property through Sea Coast Rentals. You can find more about our property management here http://www.seacoastrentals.com/

3. One of the most important steps in finding the right rental property, and the one that a qualified real estate professional can help you the most with, is to research the area! What kind of renters can you expect? How many weeks of the year is the property vacant? Your real estate broker should be able to fill you in on the area’s popularity with vacationers. They will also be able to find out the previous rental history of a home. You will want to know if there are rental dates already scheduled for the coming year. Ask your questions! The last thing that you want to do is to buy a home with the hopes of it making money for you and finding out that it is in an undesirable rental area. Location, location, location has never been more relevant than with a vacation rental property. Find the right property by using our property search tools here http://www.seacoastrealty.com/listings

4. Taxes and insurance are very different, and you will need to do your homework before you buy! Many buyers try to jump right into the market. They visit homes, fall in love with a particular place, and immediately begin envisioning all of the family cook-outs and shell-finding expeditions that a particular house will host. This is great, but before you get your hopes too high, you will need to be informed of the tax, mortgage, and insurance situations that arise when purchasing an investment property. Oftentimes, loans are harder to secure and tax and insurance rates are higher. A real estate professional can recommend to you the people that you can talk to make sure that financially you are prepared to enter the exciting world of investment properties!

5. The time to buy is now! Enjoy this first year, and make your mark on the house. Do all of the things that you feel need done before renting (unless you are buying turn-key with an established rental calendar), and get ready to earn a little extra income next summer!

If you are ready to explore the idea of purchasing an income producing property, please visit us. Due to our unique location, we have inventory in every price range and on all of North Carolina’s amazing coastline. http://www.seacoastrealty.com/