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Pros and Cons of Renting Your Vacation Home

Jul 25, 2013

Pros and Cons of Renting Your Vacation Home

Buying a home in a foreign country is an exciting moment in anyone’s life, no matter whether it’s to retire in now or to enjoy until you’re readyto retire.

Last week we talked about making your vacation home earn it’s keep… a great idea, especially if your plan is to only use it a few weeks of the year (go HERE to read the full article).
It’s also a great idea if you’re feeling the economic pinch that many folks are dealing with right now. After going through the excitement of establishing a vacation home for yourself, it would be a shame to have to sell it! This is where renting can save the day… Instead of leaving your home empty, collect rental income from some happy vacationers!

Aside from leaving your home empty, rental income can come in handy to cover expenses. An added bonus? Most developers will do all the work for you if you choose to be a part of their property management program. 

All this being said, its not all peaches and cream… there are certainly downsides to renting your vacation home. Today, we look at the pros and cons of making the decision to let a renter into your little piece of paradise… 

Pros of Renting Your Vacation Home

Renting out your international investment can be a very rewarding experience, for everyone involved! Of course, having the additional income is a given ‘pro’ when renting your vacation home, but what are some other perks?

You can choose when, and for how long the rental period will be…
If you don’t yet live in your foreign residence full-time, your options are pretty wide open. Rent for short term? Or long term? These have their own pluses and minuses… you’ll definitely yield a higher rental income with short-term rentals, but there’s more turnover to deal with. Renting long term won’t bring in as much income, but you’ll have the comfort of knowing who is in your home and that you don’t need to be on a constant search for new renters.

You still get to enjoy your piece of paradise, without the guilt of it sitting empty the rest of the year…
It’s tough to commit to purchasing a property abroad, especially when you know you’ll only be able to enjoy it a few weeks a year. By renting it out, even just for part of the time, you’re still able to enjoy it during your own holidays, and know that it’s earning its keep when you’re not there. This incentive certainly helps justify such an exciting purchase! 

Getting those ‘extra’s’ just became easier to validate…
If you know that you and your family will be the only ones enjoying your tropical home, you may not go that ‘extra step’. But when you purchase as an investor, knowing folks will pay top dollar for your foresight, it’s easier to rationalize the ocean view, extra bedroom or bathroom and granite countertops. Instead of indulgences, consider these upgrades as business investments!

Cons of Renting Your Vacation Home

Not everyone is keen on having renters in their vacation home between their own visits. Aside from protecting your personal space, why else would people be on the ‘con’ side of this fence? 

Your tropical get-away isn’t available whenever you feel like getting away…
If you’re lucky enough to be able to have ‘unplanned’ holidays, where you can simply jet away to your home abroad, then understandably, renting your home out may be an inconvenience. Similarly, if you just can’t say ‘no’ to people asking to rent… only to find that when you do have scheduled time off, your place isn’t even available! Having to book your own block of time in your own home can be a turn-off for some folks… especially during peak holiday times.

It’s time-consuming to be a landlord…
Finding renters, replying to requests, coordinating check-ins and check-outs… phew! It’s a lot of work! Although most developers will assist you with all of this – including cleaning, maintenance, etc – through a property manager, there will be a fee associated. It can definitely make the entire process easier, but if you’re hands on kind of person, even just dealing with a property manager, and not being onsite, may be too much for you.

You can’t get past the fact that essential ‘strangers’ will be in your special piece of paradise…
You’ve worked (maybe still are), saved, discussed and finally made the decision to buy your own tropical getaway, and now there are other people enjoying it?! Even when it seemed like a good way to have your vacation home make some income while you can’t be there, reality may set in when it actually happens. Depersonalizing/decluttering is part of preparing your home for renters, and this can make some people second guess their decision. It’s your personal space and it certainly doesn’t make you a bad person for wanting to keep it all to yourself!

Choosing whether or not to rent out your vacation/retirement home is just one of many decisions to make when going through the motions of purchasing international real estate.
Speaking with your developer about rental options may ease your hesitation, plus, in most cases they will already have a list of people looking to rent within your community. This usually means they are at least somewhat – if not very – familiar with them.

Visiting a country of your choice on a Discovery Weekend will give you an opportunity to speak directly to the developer about your rental options. Heck, you may want to be the renter while your dream home is being built! Not a bad idea if you’re ready to go now…

Explore our Discovery Weekend options HERE!

Current Topics

We’re taught from an early age to accept that we can’t have everything we want… that we have to share or compromise. Thankfully, now that you’re an adult, and you’re considering a property purchase abroad, these ‘rules’ don’t apply.
All your ducks are in a row… you bought a corner lot, with spectacular ocean views in a private community.
We frequently refer to Costa Rica’s southern Nicoya Peninsula as a ‘hidden gem’. Naturally, those already owning and/or living in this tropical oasis would prefer it stays that way…

Where International exists to recommend a variety of International real estate options. Where International requires developers to meet stringent criteria before offering them to you. Conversely, any inspections we conduct on projects or individuals should not be misinterpreted as a guarantee by Where International. International real estate is not immune to the ups and downs that occur in North American real estate; property values are never guaranteed to increase.

Where International is not accountable for the orchestration or deliverance of Discovery Weekends. We provide them to you on behalf of our developer partners. We recommend that you purchase travel insurance, as you would with any trip out of your home country. In addition, we advise you complete your own due diligence, purchase title insurance and always use a local attorney to assist with all transactions. In the event that a reader purchases a property from a recommended developer, Where International receives a sum from the developer.