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