Before you get started with finding the ideal vacation rental for you and your family to visit to make extra passive income, there are a few things to keep in mind. First, you need to select a location that you believe can also be a good spot for your house as a vacation home or second property later down the line. Arizona is a beautiful state that offers outdoor activities, pristine shopping, mouthwatering restaurants, cool coffee shops, and beautiful vacation rentals. There is nowhere better! Sedona, AZ is the ideal spot for travelers to head to enjoy outdoor activities, avoid crowds, become one with nature, shop to their heart’s content, and eat local food. Sounds lovely, doesn’t it? We think so, too! But before you decide on the best Sedona rental properties for you and your price range, consider the following five dos and don’ts of owning a vacation home in Sedona so you can get the best deal, turn a profit, and avoid any stresses that are part with the course of owning an extra property.
Do: Come Up with a Financial Plan
The first thing you must do before you choose a vacation home to purchase as a rental property is to come up with a financial plan that details your current finances, how much you are willing to spend, monthly rent, upgrades required, the cost of any repairs, and potential revenue. Understanding how much you can potentially make on your home can give you a good idea of your budget, the monthly payment for the property, and how much you may need to set aside if the rental property goes unused. Finding out about local vacation rental companies’ prices can give you a good idea of how much you can earn. Our agents at Porter can help you understand potential earnings based on the location, size, amenities, and more. Our reputable agents are well-versed in the local real estate industry and can help give homeowners and future property owners a good idea of how much their typical expenses will be and how to make the most of their new home.
Don’t: Forget to Upgrade the Property
One of the biggest mistakes homeowners make when it comes to purchasing a new Sedona investment property is forgetting to reinvest in the property and make necessary upgrades. Rental homes require routine fixes, maintenance, and upgrades so they can stay at the top of the pack when it comes to tourists looking for pristine rentals for themselves and their travel partners.
Do: Work with a Property Manager
We mentioned the helpfulness of working with Porter to help come up with a financial plan to see which properties you can and cannot afford when it comes to selecting your rental home for passive income, but we cannot underestimate the importance of hiring a property manager to keep your home up to date and running smoothly. Luckily for you, Porter will never leave you high and dry when it comes to necessary repairs, renovations, fixes, and upgrades in the rental home to help you get more money and appeal to a broader customer market. Your real estate agent and property manager can help give you suggestions on what to fix and how much you may need to spend.
Don’t: Ignore Maintenance Requests
Even though spending your hard-earned money on upfront maintenance can seem like it is not your job, making sure you do preventative maintenance is key to keeping your house at the top of the list for years to come. Porter can help you identify weak points and pinpoint necessary fixes to save money and make your house look more desirable than others in the area.
Do: Use the Property Too!
We know that you want a second home so you can make passive income and rent your house to other guests visiting Sedona, but you also want to make sure that you can use the property yourself! If you bought the home, chances are you may want to spend time in Sedona, AZ to go hiking, skiing, or shopping. So, make sure you fit the home so that you can use your Sedona rental properties to fulfill your needs, make use of extra storage, and strategize how to include your own personal touches in the home.
Do: See the Competition
Just like with anything else in business, you want to check out the competition to see what they are doing to their properties, how much they are listing their home, and the types of customers they are getting. The best thing about scoping out the competition is that you don’t have to do this on your own; Porter can do this for you with our local agents who are knowledgeable about the surrounding prices, property availability, competition’s prices, and much more. Porter can give you an idea of how your property stacks up against the other homes in the area, how you can improve your home to stand out among the rest, and certain fixes, amenities, or upgrades to consider to get even more money for your property.
Do: Set a Realistic Price
The last thing you want to keep in mind when it comes to renting your property in Sedona is to set a realistic price. You never want to set the rental price too high, as this can drive off customers and narrow the target market significantly. You want to make sure that if you are trying to generate income, you keep your house always filled.
Don’t: Go at It Alone
We already said that working with a property manager is key to being able to list your property and fix it after the fact. Porter is a reputable company that can take care of all of the hard work for you, so all you have to do is sit back, relax, and enjoy the passive income! We can help make your vacation and rental process as easy as possible. Our agents are top of the line and pride themselves on making you happy. Get started by looking at our website, and contacting us, and we can do the rest of the hard work. Talk about easy!
