Buying an investment property is an attractive option for those looking to get an extra income, and services like Airbnb make renting your property easier than ever, making it a real competitor to big hotel chains.
Travelers are increasingly choosing rental properties instead of hotels, as it allows them to find a more personalized place to stay. There are several advantages including lower costs, flexibility, and meeting amazing people.
Some of our clients come to us with this kind of property in mind, and ask for our advice. It is hard to define one kind of ideal property to own, but here are some tips that can make it easier to find the right property for a vacation rental.
First of all: think about your ideal guest
Before jumping into buying your ideal investment home, you need to ask yourself: who would be my ideal guest? Thinking of this person will allow you to focus your search on the right kind of properties, instead of wasting time and money with a place that is not attractive for your ideal market. In order to get the attention of your prospective customers, you need to find what is attractive to them.
Here are some of the characteristics, services and amenities different guests are looking for, so take note!
Most young people are looking for a place with a great price and location, steps away from the attractions, the best clubs or shopping malls. The ideal property must have access to internet, a pool and commercial areas nearby.
Young people are also more forgiving with furniture and/or equipment of the property, a nice but basic place to sleep is more than enough. This means you can put your money into buying the best property available and skimping a little on other areas: washer/dryer? Chef kitchen? Top of the range appliances? They can be put at the end of your list!
Couples are looking for romance: a comfortable bed, a jacuzzi, or even a small table in the garden to enjoy a romantic meal together. Accommodations in an adults-only building can also be a plus, as couples look for tranquility and privacy to enjoy their vacation.
It is important to invest money in creating an inviting environment, nice decor and cozy areas. Services like: a wine chiller with some courtesy wine, a basket of fresh fruit or even flower bouquets might enhance the popularity of your property.
Families will be looking for safe spaces that provide enough room for everyone, and with as many kid-friendly amenities as possible: play areas and a pool are a must. If your vacation rental has internet, a Smart TV, and maybe even some video games… it will be a complete hit!
Think of a place with a fully equipped kitchen, a dishwasher and even a washer-dryer, as well as access to services like supermarkets, doctors and shopping malls. Offering specific services such as daily cleaning, a welcome grocery pack, and optional nanny services will make your property completely irresistible.
These guests are great as they are willing to stay in a place not so close to the main attractions, in order to avoid noise and crowds. This means you can purchase a bigger property in a subdivision, for a fraction of the cost.
Retirees are looking for places to spend long periods of time, either to escape cold winters, to save money or just to enjoy an adventure. Most retirees look for properties in a quiet area, preferably within walking distance to services and amenities.
If retirees are your ideal guests, purchasing a one-story property or one located on the ground floor is the best bet. There are some developments geared towards adults only, with a quiet and relaxing environment.
Business travelers are looking for a comfortable place close to convention centers, big corporations or businesses. Other amenities to consider are a quiet environment, access to internet and a space to work.
A small kitchenette to prepare coffee or warm some food might be also a good touch, but it can be something pretty basic. Keep in mind that you might need to provide a place to hang clothes, an ironing board and iron, as some professionals need to keep their clothes in perfect condition.
Of course, there are pros and cons to be considered for each type of guest, but in general these considerations can help you narrow down your search and increase your chances in finding a great property and attracting more of the clients you are looking for.
Remember to have a look at each rental company’s policies, get the right team in charge of keeping your vacation rental in excellent condition, and above all the right real estate company to help you find your dream investment property!
Also, if you want to learn more about generating income with a rental property, sign up for our latest webinar to get some tips from the experts.
By Thomas Lloyd for TYT
Thomas, from Indiana, is a graduate from the prestigious Krannert School of Management at Purdue University, where he obtained a degree in Administration with the Financial Management option. He has been working professionally in Mexico since 1995, and in 2011 he was the first person to ever attain a new nationally regulated Real Estate degree and professional identification number for the Country of Mexico. In 2009 he was voted Realtor of the year, because of his professionalism, attention to customers and knowledge of procedures and the market. Also, he has been active in the real estate community serving on the real estate association’s Honor and Justice Committee. Thomas founded TOP Mexico Real Estate to help non-Mexicans have an enjoyable and safe experience as they purchase and invest in real estate in Mexico.