How to Buy an Oceanfront Rental Property
Do you want to buy an oceanfront rental property? There are specific considerations for vacation rentals, such as weekly turnover, frequent marketing and restrictions from municipalities. Additional factors include the wear and tear caused by being so close to the water and the zoning regulations.
Understanding the intricacies of property management and making smart purchases is key to getting the best out of your ownership. Learn the details of this sub-market before you make your purchase. This is what you need to know when looking to buy an oceanfront rental property.
Target market
Be aware of who you intend to rent to. A vacation rental is geared towards a particular market. There are many options: luxury, budget, couples, business travelers or large families who travel together on vacation. To help you understand your ideal renter, it may be helpful to create a "renter personality" or "avatar".
A specific market will help you decide what kind of property to purchase. This will help you decide what amenities and decor you want to add.
Matching the property with the audience
Once you have identified your target market, you can begin to match properties to them. There are several factors you should consider. The first is what type of property are you targeting? A typical condo won't accommodate large families, but a house with multiple bedrooms is sufficient for couples. An oceanfront condo may be more appealing to budget renters.
After you have purchased the property, you will need to make it look good for the intended audience. Luxury guests, for example, expect the best furniture and amenities. You might have to redesign or install new furniture in order to meet your expectations.
Limits on occupancy
The occupancy limit refers to the maximum number of persons allowed to reside in the rental property at any one time. Local ordinances and regulations must be adhered to when setting the occupancy limit.
You need to cater to large families and large groups if you are looking to cater to them. To rule out properties that aren't suitable for your market, you can use the number of bedrooms or bathrooms. Two people should be per full-size bed, with five per bathroom.
Amenities on-property
Consider the amenities available on your property to better match properties with potential tenants. How will guests experience your oceanfront rental property? This may be due to the proximity of some amenities. Many visitors to the Grand Strand might be interested in an oceanfront vacation and a nearby golf course. A patio, beach chairs umbrellas and kayaks are some other amenities that could be included in an oceanfront rental.
Although pools can increase your revenue, they can also be time-consuming to maintain. To determine if the rental income is worth the extra expense, compare the rates at similar locations without and with a pool.
Ask local rental agencies what amenities renters want and what they are most interested in. These answers can often be found by looking at the properties currently available for rent and determining their gross annual income.
You can determine which properties you should include in your search by knowing the amenities that are desired.
Find the best locations to rent a vacation rental on the oceanfront
When deciding where to buy an oceanfront rental, there are several things you should consider. To determine the area's visitor traffic and specific data, you will need to do some research.
Consider how many people visit your beach each year, and how they get there. Tourists who fly might want to have their vacation home just a short taxi ride or Uber ride from the beach. Your marketing efforts will be easier if you know where your visitors are coming from.
There are many rental areas. Some beachfront areas rent better than others in the Carolinas market. Take a look at the occupancy rates. This will give an indication of the popularity of the area with renters. The area will be more popular if it has a higher occupancy rate.
Find out the average length of stay within the region. This will provide you with an indication of how long renters stay in the area. The more appealing the area, the longer it is.
Different renter types will be available in different areas. What is the typical vacation crowd like? Ask rental management companies how they feel about the houses and what the rent prices are.
Nearby amenities
Even if your property is oceanfront, guests still want easy access to food and shopping. A great vacation experience is dependent on being close to the action.
Take a look at the activities available in the area. Is your oceanfront rental near attractions, golf courses and restaurants? Potential renters will find your rental property more attractive if it is closer to these amenities. It is attractive to be able to walk to the places you need.
Gross rental income estimated
You should not only plan to appeal to a particular rental audience but also consider your rental income. Start to estimate gross rental income before you purchase the property. This is the income you expect to earn from renting your property, before expenses. This can be done by researching the average rental rate in your area for similar properties.
The owner of the property you are interested in should have information about the rental history. To better predict future income, a vacation rental that is already booked for the next season should be available.
You can get a good idea of your income by looking at the gross rental income. To budget for expenses, you will need to be aware of the potential income from the property.
Analyzing metrics in relation to your goals
Compare the metrics of your property to your ownership goals. This includes looking at occupancy rates, lengths of stay, and projected revenue. This will allow you to set goals and track your progress over time.
It is also important to evaluate your metrics against other properties in your area. This will help you get a better idea of the performance of your property compared to other properties in the area.
Do you need to build?
You may be wondering whether to build or buy an existing property if you are thinking of buying an oceanfront vacation rental.
There are many benefits to building a new property. It will be possible to create it in the way you like and to include all amenities and features that you feel renters would appreciate. You will have full control of the construction and can make sure that it meets your expectations.
This route requires you to understand the requirements for design, the elevation and size of the property, as well as the restrictions regarding building a pool. Make sure the builders you interview have built homes on the oceanfront. This is a different kind of construction. Subcontractors are needed to assist the builders in completing the necessary work. Ask about the flood zone and elevation of lots when you are looking at them. This can affect the amount of building space you have, as well as height restrictions.
There are also disadvantages to building a new property. Building a new property can be riskier than buying an existing one. It is not guaranteed that it will be available for rent as often as you would like.
Plan for long-term maintenance
Between tenant turnovers, cleaning up toiletries and sheets, and maintaining a landscape, vacation rental owners plan to invest in property maintenance. A vacation rental requires regular maintenance, such as painting, repairs and replacement of appliances.
Because of the salt water and sand, oceanfront property requires special considerations. The weather can be harsh on any outside of the home. It's a good idea for your home to be maintained on a yearly basis. The off-season is a great time to take care of cosmetic and miscellaneous issues. You should have a budget for long-term maintenance to cover any unexpected maintenance issues.
Rental management companies
A rental management company may be a good option if you are looking to rent an oceanfront property. These companies can manage all aspects of renting your property from marketing to cleaning to maintenance. Home Search Simply has positive relationships with several management companies in the area, contact us if you need help finding the right fit!
A rental management company will take a lot off your plate in return for a portion of rental profits. The property fee must be included in your budget.
Research is key when selecting a rental management firm. It is important to understand the fees they charge and what their services include. Ask other owners to give you an insight into the experience of working with them.
You must also remember that your vacation rental will still need to be paid for taxes and mortgages.
Owning an oceanfront property as a vacation rental
There are many factors to consider when purchasing an oceanfront vacation rental. It's crucial to research everything, from occupancy rates to target markets to ensure that you make the right decision. An oceanfront vacation rental is a great option if you are looking for a property you can rent to vacationers.
We are happy to answer any questions you may have or provide more information. We are happy to assist you in any way that we can.
