What should you consider when investing in a short-term vacation property?



CITY & COUNTY ORDINANCES: Investors need to make sure that short term rentals are legal in the city they choose. Some cities require permits, other cities restrict rentals to 30 days plus. Do your research and make sure you understand all restrictions.


LOCATION: Desirable locations are huge. Walk to town, close to beach, close to local attractions bring the highest return. In the listing service, homes are noted with a "Walk Score". The higher the rating, the closer to town.


BEDROOM COUNT: The bedroom count and bed count are big when considering your vacation rental. Bathrooms are also a big factor especially for a family booking.


FURNISHINGS: Part of the expense in preparing a short-term rental for the market is furnishing it comfortably and adding dishes, linens, and other accessories. Upgraded fixtures and finishes are often included in order to make the property show better on reservation portals and to ensure more favorable guest reviews. If you are in a coastal town like Pacific Grove, creating a coastal vibe is always a good idea. Many rentals often include bikes, beach accessories and games and locally, most owners offer tickets to the Monterey Bay Aquarium. Sometimes sellers agree to sell their homes fully furnished. It saves them money on the movers and they don't have to store their belongings. On the flip side, the buyers don't have to spend time and money re-furnishing the home. It's often a win/win!