I used to own a small vacation rental on the N. California coast (not a cabin). The rental management company made money, the renters enjoyed themselves and we ended up losing money every month. Add in the way that renters messed the place up (one group dumped lit charcoals on the deck before they left, another left a door open all night and had a skunk visit, etc.) and it was something I'll never do again and wouldn't recommend anyone else do.
This ☝🏽
Renters use a place like it’s a motel. Everything in the home has a utility use to a renter. ‘We want a more comfortable chair on the deck-let’s move the couch outside and leave it’….Then it rains. Oopsie, no biggie, it’s just a rental.
Carpets get wrecked. Plan on redoing and replacing certain things every 4-5 years. Your management company will let you know when your house has been trashed enough that you’ll need to replace things.
You buy everything upfront to make the house ready to rent. Most management companies want 40% to handle the bookings and cleanings/maintenance. You pay for everything, including maintenance to repair things damaged.
Ask any ‘Management Company’ about how you financially recover egregious damages incurred by the renters. They’ll tell you, you’re gonna need an attorney to sue renters for holes punched in walls, pet damage, etc. The Management Co, isn’t responsible for bad renters.
What’s the maximum occupancy your house can hold? Renters love to stack people in a rental. It drops their price by dividing the rental cost amongst those staying there ~ Your house may only sleep 8. Management company says 8 people only. Doesn’t matter, unless you have a management company that checks how many people are in the house. Your house at some point will become a frat house party. Guaranteed!
Your neighbors who own their house and don’t rent them out, will probably hate your ass because of the partying and loud noise coming from your rental, especially during the summer.
Oh, and when you and your wife come to stay at your house. You will have to pay the Management Co. cleaning fee. Only their house cleanings are acceptable, especially with the Covid BS.
Obviously, I have some knowledge of this endeavor. We own several properties on the coast, including an ocean front home. I looked at doing what you are considering and after interviewing the top management companies in our area, I said Fûck That!
Our homes are surrounded by vacation rentals, people doing what you are considering. I see damage and repairs having to be made by contractors because of renters. I just SMH.
I will apologize for this remark upfront, but if you can’t afford to buy a vacation house only for yourself, and use it often enough to feel it was worth your investment. Don’t do it. Buy a trailer, or stay in a hotel near the place you want to be.
🦫
