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