Create short-term rental income for your investment
Updated: Feb 13, 2020
Owning a second home in the Carolina mountains can be sound investment--if you know how to find the right property management company.
One of the great benefits when deciding if you should invest in a 2nd home in the mountains of the Carolinas is to gain a better understanding of what rental income would look like and how much you should expect as a return on your investment.
If you do decide you want to generate income, you will want to first decide if you want to hire a property management company (PM) to manage the process or take it on yourself. There are many websites that make the later a less daunting undertaking. For example, many individuals are using Airbnb and VRBO to market their homes for rental purposes. These sites allow you to broadcast your home to a big market and you can pay page positioning for where your property would land (the more you pay the more eyes you are in front of). These sites also help manage availability calendars and have software to execute the transaction. While the fee is less than a traditional PM would charge there are still plenty of research to best compare fees and to gain an understanding what it can and not do.
Please note there will still be several things that would need to be considered in the process if using one of these sites. For example, who cleans the homes, how to manage repairs and communication with the guests including directions and property details that will fall on you as the homeowner to manage. A full-service PM would take most of these responsibilities on to allow the homeowner to have minimal time requirements in the rental process.
The market where PM's operate can vary from national scale to just one of the niche small towns in the area. You will find the national providers are lower cost (10%-15% on average) but may be limited concerning area expertise and niche services they provide, whereas smaller PM's can really make sure the experience meets the exact needs of the guests. The smaller PM's generally charge between 15%-25% of income generated.
Mountain Properties of the Carolinas has researched most of the property managers in the areas we sell and developed an understanding of their costs, occupancy rates, customer reviews, general core competencies and service areas. This allows us to make recommendations to our buyers of which companies might work best for the homes they are considering and what those returns generally look like.
Please let us help you with this process and to help you select the right company for your home if you decide to use your home as a short-term rental option!!