Per a recent post on CNN Money, Vacation Home Ownership is on the rise.  Per Liz Westman, “Don’t listen to the naysayers. Rentals can cover your second-home costs if you’re careful when you buy and you follow these 3 simple rules.”

In Palm Springs, many people rent out their homes as vacation rentals.  The Palm Springs market is a popular destination for many travelers looking to escape, and wanting the comforts of a private home, as opposed to a hotel room.  Palm Springs draws from a number of states all over the country, in addition to being only two hours from Orange County, San Diego and Los Angeles.  Buying a second home in Palm Springs and renting it out, is a viable option for many.

Per the article, for a successful vacation home rental, here are the three basic tenents:

• Vacation homes need to be rented 15 to 17 weeks a year in many areas to break even. This estimate is based  on the assumption that one month’s mortgage payment would equal one week’s rental income in the peak season. More expensive homes would need to be rented longer. 
• Internet advertising is essential. You need to reach the widest possible audience of potential occupants to keep your place solidly rented.  The more sites you can post on, the better. 
• Owners need to cut out the middlemen. Management companies take anywhere from 10% to 60% of rental income, making positive cash flow impossible. Handling rentals and maintenance isn’t that tough, even long distance.

Many of my clients rent out their 2nd homes here in Palm Springs on a part time basis.   Let me help you find the perfect 2nd home, and I’ll be happy to share with you my knowledge of what is involved with making it a successful vacation rental. 

To read the full article, click here.