How to Rent Your Second Home

Thanks to the Internet, offering your second homeconsiderations involved with vacation rentals.
as a vacation rental has never been easier or,Being able to accept credit cards for booking and
potentially, more profitable. In the past, you really haddamage deposits simplifies things enormously. You
only two choices. You could either list your seconddon't have to worry about checks clearing (or
home with a property management company andbouncing). Or being delayed in the mail. You don't
trust it to get you bookings for the season, or youhave to write out and mail refund checks for damage
could place ads in newspapers and handle bookings,deposits. You can handle all financial transactions
security deposits, rental checks, and all the otherassociated with your rental online or over the phone.
details yourself.Step Three is to build an on-site team of
Unfortunately, there are at least two disadvantagesmaintenance and service people. When you have a
to listing with a property manager. First, a propertyplumbing or electrical problem in your main home, you
manager's goal is to rent as much if his or herknow who to call. Your second home/vacation rental
inventory as possible. None of them has any interestmay be located a thousand miles away, but the
in renting your particular property. Second, whileprocess is the same. Your guest phones you with a
property managers can free you from all booking andproblem. So you call the appropriate local service
maintenance chores, their fees can range from 15%person to take care of it. The same with cleaning
to a whopping 50% of your rental income.and other services. You do not have to be on-site.
As for the traditional do-it-yourself approach,You just have to previously established relationships
newspaper ads are expensive, and placing ads onwith good people. Alternatively, as you're setting
free services like Craigslist requires constant repostingthings up, you may find that a property management
since they disappear after a week or so.company or rental agency will agree to sell you
So what do you do? You own a second home. Sincecleaning and repair services a la carte.
it isn't your main nest, you aren't reluctant to offer itActually, this brings up an interesting point. The savvy
as a vacation rental. How can you maximize theproperty management companies realize that the
income it throws off while minimizing managementInternet has altered the balance of power. Rental
and maintenance hassles?agencies are no longer a property owner's only
Step One is to list your property withchoice. So a growing number are willing to negotiate.
HomeAway.com, owner of the four leading vacationFor example, you might list with a property manager
home rental sites. The cost is $300 a year, and itbut arrange a deal under which you pay full
gets you on CyberRentals, GreatRentals,commission on bookings they bring in but pay no
A1Vacations, and HomeAway's own site. For ancommission on bookings your own marketing efforts
additional $180, you can also list on HomeAway'sgenerate.
VRBO.com, the biggest such site on the Internet. WeHere's the bottom line: If you're not renting out your
also recommend ($150), for a total annual cost ofsecond home when you and your family are not
$630. Think of these systems as your starter set.using it, you are passing up thousands of dollars a
And avoid the temptation to waste time listing withyear in extra income, not to mention applicable tax
the free sites that are sure to solicit you.deductions. And, thanks to the Internet, you no
Step Two is to get set up to accept major creditlonger have to pay ruinous commissions to property
cards. Costco, Sam's Club, and trade associations andmanagement companies. You can do it all yourself
business groups offer credit card "merchantand keep all the money. (This is a lot easier than you
accounts" as membership benefits. But wemight think.) Or you can do some things yourself and
recommend going to and clicking on "Vacation Rentalpay for other services. There is definitely a
Credit Card Merchant Account." Like Rentors.orgcontinuum of possibilities when it comes to making
itself, this program was created by the leadingyour second home or vacation property work for
vacation rental listing sites now owned by Theyou!
financial institutions involved are aware of the unique