| Thanks to the Internet, offering your second home | | | | considerations 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 had | | | | damage deposits simplifies things enormously. You |
| only two choices. You could either list your second | | | | don't have to worry about checks clearing (or |
| home with a property management company and | | | | bouncing). Or being delayed in the mail. You don't |
| trust it to get you bookings for the season, or you | | | | have 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 other | | | | associated 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 disadvantages | | | | maintenance and service people. When you have a |
| to listing with a property manager. First, a property | | | | plumbing or electrical problem in your main home, you |
| manager's goal is to rent as much if his or her | | | | know who to call. Your second home/vacation rental |
| inventory as possible. None of them has any interest | | | | may be located a thousand miles away, but the |
| in renting your particular property. Second, while | | | | process is the same. Your guest phones you with a |
| property managers can free you from all booking and | | | | problem. 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 on | | | | with good people. Alternatively, as you're setting |
| free services like Craigslist requires constant reposting | | | | things 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. Since | | | | cleaning and repair services a la carte. |
| it isn't your main nest, you aren't reluctant to offer it | | | | Actually, this brings up an interesting point. The savvy |
| as a vacation rental. How can you maximize the | | | | property management companies realize that the |
| income it throws off while minimizing management | | | | Internet 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 with | | | | choice. So a growing number are willing to negotiate. |
| HomeAway.com, owner of the four leading vacation | | | | For example, you might list with a property manager |
| home rental sites. The cost is $300 a year, and it | | | | but 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 an | | | | commission on bookings your own marketing efforts |
| additional $180, you can also list on HomeAway's | | | | generate. |
| VRBO.com, the biggest such site on the Internet. We | | | | Here's the bottom line: If you're not renting out your |
| also recommend ($150), for a total annual cost of | | | | second 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 with | | | | year 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 credit | | | | longer have to pay ruinous commissions to property |
| cards. Costco, Sam's Club, and trade associations and | | | | management companies. You can do it all yourself |
| business groups offer credit card "merchant | | | | and keep all the money. (This is a lot easier than you |
| accounts" as membership benefits. But we | | | | might think.) Or you can do some things yourself and |
| recommend going to and clicking on "Vacation Rental | | | | pay for other services. There is definitely a |
| Credit Card Merchant Account." Like Rentors.org | | | | continuum of possibilities when it comes to making |
| itself, this program was created by the leading | | | | your second home or vacation property work for |
| vacation rental listing sites now owned by The | | | | you! |
| financial institutions involved are aware of the unique | | | | |