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Pros and Cons of Vacation Rentals

Woman Enjoying Her Stay at a Searcy Vacation RentalGetting a Searcy vacation home can be a pleasant option. You can have a place of your own to go on vacation and rent it out to others the rest of the year to help with expenses. But really, anyone who has owned and rented out a vacation home can confidently tell you that it doesn’t typically work out that way. There are lots of pros and cons to owning one or more vacation rentals that you should realize and know. Before ever jumping into vacation rental ownership, it’s crucial to take into account all the advantages and downsides.

Pro: Extra Income & Tax Breaks

In all likelihood, one of the biggest advantages of owning a vacation rental is the extra income you can acquire from renting it out. Subject to whether you opt to rent it out short-term (days or weeks at a time) or long-term (several months at a time), you could most likely earn enough that the property more or less pays for itself.

Con: Another Mortgage Payment & Expenses

Purchasing a vacation rental comes along with a mortgage payment, insurance, property taxes, utilities, and other expenses. All of these would be taken into account just in case you are contemplating acquiring a vacation rental. Additionally, financing for an investment property can cost more since lenders often require a larger down payment and charge higher interest rates on second homes.

Pro: It’s Yours to Use

Acquiring a vacation home clearly means that it’s yours to take advantage of whenever you feel like it. This can be useful if you habitually visit the same location and don’t actually like to stay in hotels. You can furthermore use the property for business or personal events, meaning you won’t have to pay to rent event space.

Con: Marketing and Screening Tenants

When you are not using your vacation home, you’ll have to market it to find tenants for the rest of the time you aren’t there. Marketing can be a time-consuming task, as is screening potential tenants. This is true if you opt to rent your vacation home out for days or weeks at a time. With so much turnover, seeking enough tenants to rent the home year-round can be annoying.

Pro: Building Your Retirement Fund

Investing in rental real estate is one of the best solutions to really grow a healthy retirement fund safely. Rental property owners frequently incorporate their rental income or property sale into their retirement plans. Unlike the volatile stock market or savings accounts with little interest, rental real estate offers a combination of safety and growth that likely no other investments can ever equal to.

Con: Property Management Takes Time

The big advantage of owning a vacation rental will simply arise after years of property management, which would be a lot of work. This is particularly true if you are trying to keep your property clean and maintained yourself or your vacation rental is not at a convenient distance from your primary residence. Numerous vacation rental owners are caught surprised at just how much time and effort it takes to prepare for each new tenant, a process that ensues far more frequently than with long-term residential rentals.


There are numerous favorable reasons to get a vacation home and rent it out. And, despite the fact there are particular downsides, appointing the right property management company can help you avoid most of them. Would you like to learn more about smart approaches to managing vacation rental properties? Real Property Management Delta has a top-notch team of Searcy property managers to help you navigate the market as well as keep your vacation rental profitable. Contact us online or call at 501-404-0674 today!

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