The world seems to stop spinning for a moment in times of crisis. Entire countries enter a state of lockdown and everyone’s plans are on hold.
But don’t let uncertainty stop you from looking towards and planning for the future. As the age-old saying goes, “this too shall pass” and right now these words wrap around citizens of the world like a comfort-inducing embrace.
When this too passes, our collective aim should be to emerge unscathed and be as prepared to carry on with life & business as possible. With that, here are vacation rental investment tips that you can look forward to implementing when the time comes.
Make Data-Driven Decisions and Not Panic-Driven Decisions
In times of crisis, people panic. A lot of the time, decisions made in panic mode are anything but wise. That’s why it’s important to let data guide your decision-making during such times.
Before rushing into a vacation rental investment, it’s a good idea to do the following:
- Review your finances: Make sure that this investment in vacation rentals is indeed something you can afford. It’s important that your rental property investment strategy aligns with your budgetary limitations.
- Calculate the cost of worst-case scenario situations: If you’ve spent some time wondering “should I buy a vacation home?” then you should already know that the worst-case scenario here is that nobody will want to rent your property. But no matter what, a vacation rental investment will always be exactly that: an investment. Whether it’s an investment into the memories you make with your friends and family or an investment that will get passed down to your children, you’ll win in the end.
- Make data-driven decisions: Use the important data that is readily available to help inform your decision.
- Follow experts’ opinions for predictions for the end of the crisis: The world will surely look different post-crisis. Will it look different in a good or bad way? Only the experts can shed light on such questions.
Look to History to See the Future
In today’s day and age, looking to the past to inform the future is easier than ever. We have information at the click of a button! Find comfort and hope in predictive analytics. Review data relating to previous periods of economic downturn and recessions. Use the rental income expenses and occupancy rate projection tools that are at your disposal.
Technology has been specifically created to make your life easier so make the most of it even during difficult times.
Location, Location, Location
Location is always the most important factor when it comes to a vacation rental property. Start your research now to find the perfect location for your new property. Here are a few things to keep in mind on your quest for the optimal location:
- Search for the best places to invest
- Analyze existing data that speaks to the best areas for Airbnbs
- Try to opt for a property that poses less risk during crises such as leisure destinations, properties in remote areas or those in the countryside
Find the Right Rental
Start looking now for the right rental for your needs. Turn to vacation rental tips for owners to help you identify the rental that will tick all of your boxes. Always keep a solid Airbnb rental property investment strategy or two at the front of mind and ask yourself the following questions:
- What is the current condition of the property?
- How much time and budget will it take to fix the property up & get it rental-ready?
- Why is the current owner selling the property?
- Who will match the profile of the ideal renter, post-crisis, and how can I make this property appeal to them even more?
Use Crisis to Your Advantage
While nobody should ever manipulate a crisis for personal gain, there is absolutely nothing wrong with taking advantage of some of the things that go hand in hand with crises.
What we mean by this is simple: take advantage of the state of the market. With market disruptions such as the coronavirus, pandemic comes a handful of factors that make investing in vacation rentals easier such as lower interest rates and even the possibility of better pricing.
So, if you’ve been “oohing” and “aahing” about buying a vacation home, will you wait until the crisis has died down or let the state of the market make this decision for you?
Final Thoughts on Vacation Rental Investment
Crisis or not, a vacation rental investment is always a wise one. Make use of the rental property investment tips we’ve outlined for you today and enjoy the benefits of being a vacation rental property owner.
Who knows, the next time a crisis strikes, your property may be exactly the spot where people choose to spend their self-isolating days.