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Old Yesterday, 01:51 PM
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jon4pres jon4pres is online now
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Lake rental house

There is a house at my local lake for sale that I am interested in as an investment. It seems to be priced right and needs some updates that I can do and add some sweat equity.

My concern is creating some income to help pay for the house. I could try to just rent it or try to do a vacation rental.

I have other rental houses so I know that business but am not very familiar with the vacation rental. Does anyone have any experience to share? Or other ideas?



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Old Yesterday, 02:01 PM
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CruisinGA CruisinGA is offline
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Good friend of mine just bought a 2nd home on a lake- here is what I know second hand- They bought to enjoy, but are renting it as much as possible until it is paid off. It has rented almost every day in June/July/August. Also has the benefit of being in a mountain area so it is not just a lake rental but can also be marketed as mountain rental which offers more off season rental opportunity.
He has had better luck with VRBO than Airbnb. Different clientele, VRBO is more family vacation, AirBNB is more millenial party crowd.
His house is 100 miles away so having reasonably priced responsible local service providers is a big key to reducing his headache factor. Still seems like he has to make emergency trips fairly often but all in all I think he'd say that it is worth it.
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Old Yesterday, 02:48 PM
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We're in the first summer of our VRBO. It has been a learning process and does take time. Rather than a management company, my wife has been handling. It's definitely getting rented out but it took a lot of cash and time to get there. Depending on the house and expected clientele, it costs a bit to get it up and running.

It has to have a whole second set of linens/towels. Need a good cleaning crew, not just for inside but also outside.

We live 1200 miles away so hard to do any troubleshooting on things. Have to hire it out and try to get people to fix it for you. I could have done a lot, but living so far away I had to pay people.

Management company wanted about 30%....which was a lot out of our bottom line.

We're just breaking even but we did buy a LOT of items to get it up and running! You can find ours in the Rental Home section here on TT.
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Old Yesterday, 03:31 PM
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We have a cabin that we rent on Big St. Germain Lake in Wisconsin. We use a local rental management company and pay 30%. The rental company folks are great people and really watch over the place about like their own. The 30% covers them handling the reservations, cleaning, check-in, check-out, questions, general help etc. We pay the laundry and since it's only the bedding it runs about $12 per change over. We live 18 hours from the cabin so having someone watch the place and then handle the other items is worth every bit of the 30%. I do maintain a website for our cabin to help add to the marketing the management company does. The cabin is part of an association that we pay dues twice a year covering lawn care, spring and fall ground clean up, beach cleaning, dock maintenance and snow removal. All in all, so far, it's been great as it gives us a place to go when we can, if I remember to block out the dates. We have a positive cash flow, mainly due to it being a very desirable location and it's a nice nostalgic northwoods cabin, which really helps with annual improvements and repairs. The bottom line is we rent it not to make a profit but to insure it is watched, used and kept functioning. The profit we do make we roll back into the cabin thus increasing the desirability and it's value.
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Old Yesterday, 05:42 PM
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The prospect property is 5 miles from my house so I should not need a maintenance company but our lake is not in a very desirable place. I can't really figure out why it is not a desirable place as it is a beautiful lake that is an hour from Kansas city, specifically Johnson County which is very affluent. We have seen in the past 5 years that property prices are on the rise and I hope that trend will continue. This is another reason for me to buy now as it may be much more difficult for me to do in the future.

My ultimate goal would be to move into the house but if I could rent it for a couple of years it would make it more affordable and also help me out with capital gains on the house that I currently live in.

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Old Yesterday, 07:16 PM
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Please dont do this to your neighbors. Renters on lake property are by far the rudest beings on earth (not all but most) Most renters have no vested interest in the lake they come out for a balls to the wall weekend and it is very annoying. Yes we have a rental close to us in our cove and a few other down the lake and those neighbors say the same thing about those renters. Usually tubeing from 8am to 9pm is how they roll and aren't very skilled with courtesy and boatsmanship.
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Old Yesterday, 09:13 PM
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My experience, as both a renter, and a neighbor, is... there are different types of renter!
Certainly if you get a bunch of partiers they can be disruptive and more importantly damage the house. There's a lake house two docks down from mine that has had this - rented out to a bunch of rowdies that party all night (not necessarily a bad thing) and trash the place (unacceptable!). I'm all for a good party but there's no reason to trash the property, but some don't see to know the difference.
On the flipside, my wife and I rented the same property on the same lake for two weeks every summer for at least 6 or 8 years. We took pride in the beautiful place and took care of it like our own. So you can get both.
I think the trick is not to do on-line renting but to find renters that want to be regulars. They tend to like the place and want to keep it nice. Also, renting for a minimum of two weeks changes your client base. You only get people who can afford it and therefore understand the value of things. If you rent for short periods (like weekends!) you get college kids. Watching the bikinis might be fun but the damage they do and the disrespect for the place isn't worth it.
My 2 cents.
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Old Yesterday, 10:39 PM
jgraham37128 jgraham37128 is offline
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Quote:
Originally Posted by davidstan View Post
Please dont do this to your neighbors. Renters on lake property are by far the rudest beings on earth (not all but most) Most renters have no vested interest in the lake they come out for a balls to the wall weekend and it is very annoying. Yes we have a rental close to us in our cove and a few other down the lake and those neighbors say the same thing about those renters. Usually tubeing from 8am to 9pm is how they roll and aren't very skilled with courtesy and boatsmanship.
No truer statement.... We went to look at a Lakehouse before we bought ours last year. The owner of this newly built home tells me he has bought the house right beside it (30 ft) and planned to fix it up and rent it out. I immediately at that exact point knew I wouldn't be buying this house. He was trying to tell me how every house he's bought is rented almost every weekend through the summer. I just let him talk.....thinking you're an idiot if you think I'm going to pay 220k for a house right beside a new group of renters every weekend. No thanks moving on..... I told him thanks for the info but I don't think we're interested.

Had he said I bought the house right beside it and planned to sell it also, but wouldn't be renting it out it was the top one we were interested at that time...
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