Investing In A Luxury Home To Rent Out? Look For These Features
Luxury homes can make good short-term rental properties, and they can return a significant positive cash flow when managed properly. Properly managing properties like these begins with selecting the right ones. If you're investing in luxury homes to serve as investment properties that you rent on a short-term basis, make sure you find ones that have these features.
Prime Location to Major Attractions
Location is always the primary factor in determining a property's value, and this is especially true for short-term rentals of luxury homes. People who can afford to rent a luxury home have the money needed to pay for conveniences, and a major convenience they expect is a short commute to wherever they're going. They'll pay for a place in a prime location.
In some situations, the location of a luxury home will significantly affect how much you can rent the home for. A house that's outside of a city's official boundaries, for example, might rent for a portion of what a comparable house that's directly downtown goes for. Similarly, a house that's directly on the beach will likely get a much higher rent than something that requires driving to the shore.
The major attractions in your area might be downtown shops, sandy beaches, historic landmarks, or a ski slope. Whatever they are, look for properties that are as close to these as possible. The best properties will be within walking distance of attractions or along a public transit system.
Many Bedrooms for Multiple Families
If you can rent to both wealthy travelers and everyday travelers, you'll significantly expand your customer base and be able to rent out the luxury home more often. One way to expand your customer base is to look for luxury homes that have lots of bedrooms.
Wealthy travelers will appreciate the added space that multiple bedrooms provide, and they might even expect to have a few extra rooms where they can spread out items. Other travelers who don't have as much money can go in on a luxury home rental together by getting a rental that has enough bedrooms to house multiple families.
Space to Publically Entertain
At least some people who rent a luxury home might want to entertain others. For example, they might want to host nighttime parties at the rental. Alternatively, they may want the rental for a bridal shower or similar event. Whatever the occasion, people will want a public place in the home to hold their gatherings.
Make sure any luxury home that you purchase as an investment has a space where guests can entertain. This should be a space that's large, equipped with a kitchen, and has doors to block off the more private areas like bedrooms.
For help looking at luxury residential home listings, talk to a real estate agent.
