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How to Make Money Off Your Vacation Home

Home, home on the beach...

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Owning a vacation home once considered a luxury, is now becoming a burden in today’s challenging economic times. Instead of having your vacation home just sit there collecting dust, you can make money of your property and offset your expenses. Here are some ways you can make money off your vacation home.

  • Use for Renting

The options available for using your vacation home as a rental include renting it for less than or for more than 14 days a year. You can deduct mortgage interest and property tax when you rent for less than 14 days. Also, rental income is tax-free and doesn’t have to be reported on your tax return. However, when you rent for more than 14 days, all of your rental income is taxed. An advantage to this rental option is being able to write-off rental-related expenses including utility and maintenance.

  • Use as a Family Investment

As noted in an article from the Wall Street Journal, you can distribute the cost of your vacation home by allowing family members to purchase interest. This can be done by forming a limited partnership or limited liability company with your family members. Doing this can allow shareholders to have use of the property and pay their portion of expenses.

  • Auction Use of Your Home for Charity

Charities looking for homes to host events will generally have people bid on the time they will use the home and donate the money to the charity. The benefit is you can deduct the fair market rental value on your income taxes. Organizations such as VacationHomesForCharity.org brings homeowners and charities to together.

 

 

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What Everyone Learns When They Pass the “Tourist” Travel Phase

If you’ve ever traveled, you know what it’s like to be a tourist. You book a hotel, buy theme park tickets, use traveler’s checks, and check out the local sights, shops, and restaurants during your visit. Everywhere you go, you carry your camera, sunglasses, sunscreen, maps, and daily itinerary in a small bag. Locals can take one look at you and know that you’re a tourist. If you’ve been visiting a particular location on a regular basis, and you’re tired of being considered a “tourist,” try renting a vacation property during your stay. By staying in a vacation home, you will feel more like a resident and less like a tourist.

Once you’ve made the decision to rent a vacation home, the first thing you’ll want to do is locate one that suits you and your travel party. You can utilize a vacation rental website, like HomeAway, to help you locate the perfect vacation home for your next trip. HomeAway can find rental properties anywhere in the United States. You can search for different rentals on the website and find contact information for the owners.

●      On the website, put in the location you want to visit, your expected arrival date, your expected departure date, and hit “search.” You can add other information by choosing to do an “advanced search.”

●      Once a list of available rentals comes up, read through them to find the ones you like the best.

●      Make a list of those rentals you’d like to hear more information about, along with the contact name and number.

●      Put together a list of questions about the rental for the owner.

●      Contact the owner at a reasonable hour. Calculate any time differences there may be, and call during the contact hours provided with the listing.

●      Once you have spoken with the owners of all the rentals you’re interested in, decide which one you’d like to rent and book it.

●      Before making your final decision, check with the Better Business Bureau, community message boards, and the locals to see if a previous guest had a problem with the unit.

●      Pay the deposit to secure your reservation.

●      Register for any Vacation Rental Protection services offered to insure yourself against anything that may occur while you’re staying at the rental.

●      Send your final payment to the owner before the deadline.

●      When you receive the pre-arrival information from the owner, examine it carefully. It may include requests he has for you while staying in the rental, any problems the rental may be experiencing, and tips on places to visit during your stay.

●      Check into your vacation rental during the allotted check-in time.

●      After your stay, contact the owner for any deposits or refunds that are due to you, and add a thank you letter or card (and if you’re renting out your home, make sure you provide them information on what you’ll need).

●      Write a review for your rental on the website where you booked your stay.

By following these tips, you’ll get the most out of your rental. If you really enjoy your rental home, request another stay when you contact the owner. Are there any other ways you can think of to thank the owners for the use of their rental?

Filed Under: Traveling Tagged With: , ,