You are leaning toward taking the leap and purchasing a vacation rental home. You’ve already envisioned how you want the interior to look, and you have done some rough math to estimate much income the property could pull .

Don’t get too far ahead of yourself, though. There’s much more you need to think about before putting down your hard-earned money toward the purchase of a vacation rental home.

Buying that home at the beach or the reclusive cabin in the mountains takes a bit more than just wanting it and leaping. Give thought to the following eight factors when you’re taking a look at purchasing a vacation rental home.

Location

Location is one of the cornerstones of buying and selling property, and that includes vacation rental homes.

Choosing where to purchase a vacation rental home isn’t just about you, although that is a consideration. More essential, it is about where potential renters want to spend time.

In other words, the vacation rental home should appeal to you, the owner — since you might be staying there, too — as well as the renter.

These places don’t always have to be usual vacation destinations, such as beach towns and ski resorts. Tourists will visit cities for conferences, business meetings, doctor’s appointments or even shopping. Some individuals might want to use a furnished place for weeks or months when they move to a new city before lining up more permanent housing.

If you are not too familiar with an area you’re mulling for a vacation rental home, how do you figure out whether renters would be drawn to it? Consider searching vacation rental listings on the internet, and talking with the local chamber of commerce and local real estate agents to get their thoughts.

Proximity to Your Home

Are you planning to take advantage of the vacation rental home if renters aren’t there? If so, you might want select an area that’s not too far from your permanent residence. Otherwise, it will be a struggle to get away to your getaway.

The distance of the vacation rental property from the primary residence is going to be a rigorous determinant on how many times a year it will be visited and used.

In addition, how much time are you thinking of placing into upkeep and maintenance of the property? If you are intent on going the DIY route, you’ll want to be within a reasonable driving distance to take care of things like an overgrown yard or a broken toilet.

In many cases, DIY upkeep and maintenance can gobble up much of the time you’ve carved out for relaxing at the vacation rental home, which is surely not what you expected when you dreamed of vacation home ownership.

When thinking about the upkeep and maintenance of a vacation rental home, bear in mind the size of the property, A bigger home will demand more TLC (and more visits).

What if you want to wash your hands of the upkeep and maintenance hassles? Then be sure to hire a trusted property manager to assume the burden.

Regulations

Investigating local laws to make sure vacation rentals are allowed in the area where you want to buy a vacation rental home. Some neighborhood ordinances restrict short-term vacation rentals; if you violate the ordinances, you could be fined or lose your permit.

Timing

As soon as you buy a vacation rental home, you’ll have to hang onto it for a while to maximize the investment.

Homes are not investments, and if you choose to sell, it may take a handful of months or even years to get the price you want.

Mortgage

Unless you’re flush with cash, one of the drawbacks of buying a vacation rental home — which for most people are a second home — is the not-so-little matter of paying for the property.

Based upon the location, condition and market value of the property — along with the buyer’s financial status and credit history — a typical 15- to 30-year mortgage for a non-owner-occupied property usually takes a 20 percent to 30 percent down payment. Then, of course, there are the monthly mortgage payments.

Taxes

Aside from property taxes on the vacation rental home, other taxes will come into play.

First and foremost, you must include federal income tax in your home-buying equation. As a consequence, it is critical to familiarize yourself with IRS rules and regulations about vacation rental homes.

People most of the time forget to consider the tax implications of long-term income when purchasing a vacation rental. Both are providers of tax debt resolution and tax relief services.

After the first year, taxes from rental property revenue can really add up. It is important to consider these costs when budgeting for your new property.

If you’ll be renting out your property for more than 14 days a year, you’ll qualify as a landlord and be asked to report rental income to the IRS. However, this means you can deduct rental-related expenses, such as the costs of upkeep and maintenance.

If you stay at your rental property for 14 days a year or more than 10 percent of the total rental period (whichever is greater), the property is considered a personal residence.

In that scenario, you are able to deduct expenses up to the level of rental income, but you can’t deduct business-related losses, he says. We often run by forgetting this rule and deducting losses from their personal residence.

Federal taxes will not be your sole tax concern, however.

In many places, you will be responsible for collecting sales or lodging taxes for your rental property. Check with state and local government agencies about the requirements.

Insurance

The National Association of Insurance Commissioners recommends reviewing the policy for your existing home to check whether any of that coverage could be extended to your vacation rental home. However, the Nationwide insurance company says, if you’re renting out your vacation home for money, that’s considered a business activity and probably won’t be addressed under the existing policy.

A rider or endorsement in your current policy may suffice if you’re renting out the vacation home only on occasion, Nationwide says. But if you rent it out frequently, you might want to contemplate a stand-alone commercial or business liability coverage.

Nationwide warns that a coverage for a vacation rental home typically costs more than a policy for a primary home because the vacation property is vacant more often and is more susceptible to insurance claims.

Marketing

So, you’ve picked out a home that you are convinced will be ideal for short-term vacation rentals. But you’re going to have to attract renters, right?

Before signing the mortgage paperwork, explore how you’re going to list the rental property. Will you do it through an online platform such as Airbnb, HomeAway or employ a full-service vacation rental manager such as TurnKey Vacation Rentals who will market your property on 50 websites? Or are you going to market it through Facebook or Craigslist?

In most cases, it’s easier to use a property manager to handle the details of listing your property, especially if you are not located near the rental. They can not coordinate the advertising, but also coordinate cleaning and maintenance of your property.

No matter the season or weather, there are more and more people seeking a perfect getaway from their mundane and dull routines. If you own a property or a vacation home that is meticulously designed for rental, you have to enlist it adequately so that you can increase the bookings and have lucrative outcomes. This could be harder than it sounds, but not impossible as it takes a lot of digging into what makes people more attracted to a certain place and how to attract them to your vacation home.

If you strive to increase your bookings, you want to keep up with the contemporary and up-to-day amenities, offerings, and visual experiences that many guests will look forward to.

Due to the booming advancement of travel styles, you must follow up with new and exciting ways that will increase your bookings. Here is a list of the seven most vital ways to get the most of your vacation rental offerings.

Incorporate Genuine and Updated Photos and Description

Your guests will need to be aware of what you have installed for them. To increase the vacation rental booking of your property, you need to give your future guest a clear visualization of the house or flat. First of all, don’t take pictures from a distance, and always make certain that you take images from each and every angle possible. Strive to upload quality photos on the profile because they will look more appealing to travelers.

Photographs of homes taken by professional gear will stand out from all others. Use a high-resolution camera to show off clear light and take beautiful images of the interior and exterior. Think about the layout, the angle, and how the photos will be assembled on the website.

You want to lead your potential guest through your home diligently and accurately. If you have done some renovations or improvements to the rental property, make sure that you update the profile and show the potential guests what changes you have made.

When it comes to the description, always update regularly and be concise and truthful. By having detailed descriptions of the vacation home and the sights and building around it, your guest can have a clear visualization of what they can expect. From a newly open bar to a top-notch restaurant, everything matters.

Advertise Effectively

One of the best and easiest ways to skyrocket your vacation rental bookings is to increase the amount of Internet vacation rental sites and web pages where you want your listing to be viewed. People today need to know where you are and what you have to offer; therefore, it is crucial to be out there.

First, you should head to the most popular websites. Airbnb is extremely popular nowadays, and it offers a 3% fee per booking with a free listing policy for all rentals. This a small investment compared to what you can gain with this. Next, you must visit the biggest vacation rental site, HomeAway. They offer a free-to-list option but with a higher booking fee of 10%. Not such a high percentage, because they will surely help you attract more visitors.

In the long run, you can always resort to social media. Setting up a specifically designated Facebook account for your rental services is the cheapest way to increase your vacation rental bookings. To attract more followers, offer great deals, discounts, bargains, and post apocalyptic photos of your rental home.

Invest in Interior Updates

If you happen to own a vacation home in a mesmerizing location, near some renowned monument, on a strenuous mountain, or anywhere touristy for that matter, people will click on your ad just because of the location and their demands. However, they should be wowed by your interior rather than exterior since many people seek comfortability, efficient amenities, and enticing décor.

The kitchen is the place where many families spend their time. Invest in quality appliances with a very long lifespan. A fantastic cooker and a fridge are a must. Plus, many enjoy drinking good coffee in the morning because coffee can fight off depression and uplift our spirits. So having a Blue Pod Coffee machine, for example, is another must-have appliance.

Having a quality coffee machine will attract more tourists who enjoy freshly brewed coffee. You want to make the kitchen an inviting space, so if necessary, replace the dated kitchen cabinets with new and enticing ones, change the doorknobs, and update the tiles.

Remodel your interior by adding cutting edge appliances, repainting the walls with fresh and inviting colors, and getting refined and sophisticated furniture. Always seek to be original and innovative. Search for some alluring décor. Go for a rustic chandelier instead of plain plastic ones, or get ornamental rugs or funky floor cushions for the living area. If you contribute to the long-term value of your vacation home and emphasize the unique characteristics, you’ll have a larger increase in listing appeal.

Let the Word Spread

Reviews can make or break your vacation rental. By treating your guests with respect, immaculate care, and trust, not only will they come back, but they might recommend your vacation home to numerous other people. If you have satisfied guests, they can serve as a great advertising tool.

If you put enough focus on the guest experience, you can easily generate positive feedback that leads to more bookings, and automatically to higher occupancy rates. A fantastic word of mouth can go distances, so ask all of your satisfied visitors to make and post a comment on listing sites. Encourage them to write about their full experience and stay, even if they may have had some negative issues.

What is more, you need to regularly check and respond to your home’s reviews, no matter whether they are good or bad. Of course, positive reviews can only serve you. And when it comes to negative ones, attempt to address them with care and specify that you’d enhance the issue for next time.

Sometimes all it takes is a simple’thank you’, a friendly smile, and’I hope you have a good stay’ to make guests recommend your vacation home. Do your best to remain professional and friendly once you are communicating with your guests, and do whatever is in your power to make them feel welcomed and safe. Nobody want to return back to a vacation home where the proprietor was grumpy and unprofessional. So, put a smile on your face and stay open-minded.

Implement Smart Bargains

Attempting to top up the competition can a challenging task. Another way that you can increase your rental bookings is striving to do your best to beat the competition but staying consistent with your offers. You can easily achieve that by identifying the cheapest home in your neighborhood and undercutting its price.

Just bear in mind not to make your vacation home the cheapest around, since many potential visitors may start wondering why that is so. Boost your vacation rental bookings by never being static and constantly offer interesting and smart bargains. Apart from being amongst the cheapest around, you can attract more tourists by lowering your rate.

With each new season, attempt to alter the price and offer different discounts. For instance, you can offer a 50% discount for kids under the age of 14 at the peak season, and free of charge throughout the offseason. Furthermore, offer great bargains on specific events around the area, and always remember the average price around. Another quite lucrative deal that would increase your vacation rental is currently giving discounts according to the period of the guest’s stay.

A vacation rental is not just an investment, it can also be an escape. Some people enter the vacation rental market purely for profit, others to diversify investments, and some are currently trying to leverage rental income to make the dream of owning a second home in a desirable location a reality.

If you are thinking about purchasing a vacation rental, here are some key things.

How much house can I afford?

If you can purchase the property for cash, that’s great! If you plan to use financing, it’s important to keep a realistic budget. Many vacation rentals are seasonal and even peak seasons can be disrupted.

To help pinpoint what you can afford, create an annual budget with some cushion. This way you’ll be able to pay the basic expenses out of pocket even if you have a few bad months.

Will I be able to keep a steady flow of rental bookings?

The most successful vacation rentals have something that isn’t easy to replicate so that you may just have to get creative. That special something is often the main factor that keeps your property rented in the off season and allows you to demand top dollar during peak season.

Properties with a view amenities, and a location that’s close to traveler destinations will inherently help keep your rental booked while others lay vacant.

Is there a Homeowners Associations (HOA)?

Some states are considered vacation rental friendly states, but many properties are accompanied by a Homeowners Associations (HOA) that can greatly restrict rental capabilities in your community.

Before you buy, carefully review the rules that govern your property. Understand what it might take to change the governing rules, and if any CC&Rs (Covenants, Conditions, and Restrictions) exist for your neighborhood that can also restrict rentals even when there isn’t a Homeowners Association present.

How much should I budget for home maintenance?

Every home requires maintenance. How much depends on the age, amenities, and structure. If you have a private yard and pool, carefully consider the cost of keeping these amenities looking great year-round.

For all properties, think about the day to day of what may require repairs. We advocate a proactive maintenance schedule to help prevent last minute emergencies, lost bookings, and negative guest reviews.

When looking to purchase a new home to transform into a fantastic vacation rental, or if you are interested in turning your current home into a vacation rental, it is important to understand what makes for the best vacation rentals.

The steps to renting can seem easy, but the execution may prove difficult. You need to appear at a variety of different qualities, like location, size, décor, anticipated demographic, and more.

These variables seem pretty standard, but when you are trying to market your home, they get much more impactful than you may realize. For your next investment enterprise or side project, consider these tips for renting your house; these are some of the most important qualities to look for in a vacation rental.

Location, Location, Location

The first thing you want to look for in a potential vacation home rental is the location. You want to make sure that the home is in a location that will attract visitors and tourists on a frequent basis.

The home’s primary function is to house guests that are currently looking for a short stay, so location is going to be crucial. You want to make sure that there are attractions nearby, something like a beach, theme park, or some other tourist destination that will ensure guests want to stay at the home year-round and come back year after year.

Décor

The home should be a reflection of the environment it is located in. If you are making a beach house, then groom the home up like a surf shack or a beach house. If you are near a theme park, have at least one room that is dedicated to that theme.

Guests want to be emerged in their vacation and love to find a theme throughout the home. You also want the home to feel comfortable; create a house amenities checklist to make sure you’ve stocked up on everything a family could need during their stay.

Expected Demographic

This is a tricky quality to measure, but it also goes hand in hand with the location aspect of your vacation rental. If you are located in an area that will cater more to families, something like near a theme park or popular family destination, you will want to make sure that you set the vacation rental up to be family friendly.

This may include a kids’ room or play area, and you should market the family-friendly nature of the home. If the vacation rental is located at a more romantic destination, market your home to couples that love seclusion and a romantic atmosphere. Cater your home to the people that will use it frequently!

If you are interested in turning your home into a vacation rental, feel free to call us for more information and tips for renting your house. Our experts can help turn your investment into a desirable vacation home that earns you top dollar!

Perhaps the most important piece of your rental property strategy is calculating its own ROI correctly. We stress the importance of doing it because a single oversight could mean a massive headache later. This is especially true for anyone leasing or paying a mortgage.

The Variables Affecting Your ROI

Many a failed rental operation can point to bad financial projections as their undoing. Of course, this is true for any business — but the vacation rental industry is particularly tricky to predict.

So, before we get to number-crunching, let’s just lay out the most volatile industry trends that you want to be aware of whilst planning.

Finance Options

If you’re already the owner of the property in question, pat yourself on the back and go to the next section.

Financing itself isn’t something that fluctuates once payments are being made, but there’s various forms of financing to consider. Each will present its own difficulties to overcome, so it’s up to you to investigate your options.

You will need to choose a financing strategy that’s right for you and your goals. You also need to choose one that’ll ensure your vacation rental business is sustaining itself after all initial investments are paid back.

Buy-to-Rent

With real estate prices ever-rising, buy-to-rent schemes have become a popular alternative for those interested in owning. This involves a mortgage whose payments will be factored into your prices. The risk of failure here is much greater than using a lease-to-rent scenario, but the reward for your success is a valuable piece of real estate.

Some people opt for personal loans to fund their property purchase because of no downpayment requirements. No. Just don’t do this. The interest rates are higher and payment terms are shorter.

Obviously, there’s some exceptions where a creative financing strategy would work out, but in most cases you’d just be setting yourself up for failure. Please do some thorough reading before you dig yourself into a situation you can’t control.

As a rule of thumb, it is best to not enter into a buy-to-rent strategy expecting to make a living as you’re paying a mortgage. All you should be looking to do is break even or pay your mortgage back quicker to get out of the red. You want to have that property outright as rapidly as possible.

For more info on the various types of loans / mortgages that are generally used for vacation rental purchases, read on here.

Property Lease

A lease strategy will lower your investment and focus on monthly profits. If you have no interest in owning the property in question, this is where you want to be. The terms of your lease will be defined by your intent to sublet the property. You will be given a rent contingency based on your monthly revenue projections.

Location, Location, Location

In the words of every archetypical on-screen slimy real estate agent ever:”location, location, location”. Your property’s location is a huge factor in whether or not your rental business plan is likely to succeed.

With regular rental schemes, the value of your location is dependent on its most immediate surroundings. With vacation rentals, you have an extra factor to consider: tourist traffic.

Does this mean that you can’t succeed with a vacation rental business in Iowa? Absolutely not. In fact, you may perform far better in Iowa than you would in New York simply because the real estate prices are so much better.

All it means is that you have to be realistic about your location’s rates and expected occupancy. This will help you accurately project how long you can expect to wait till you reach profitability.

To help you assess your location’s viability as a short-term rental property, we have a couple tools. First of all, do some independent research to make some general assumptions about your market. Are there hotels in the area? Are there tourist attractions in close proximity? Is there an airport? This is just common sense stuff, but it needs to be said.

You want to seriously weigh the expense of your property against the average rates in your area. If you can’t sustain yourself on the average, your risk of failure is rising.

Expected Occupancy

OK, so this is a huge variable since it’s usually tied to seasonal traffic. The best way to handle this is to do your calculations with the purpose of finding out what your lowest monthly occupancy rate would need to be. That way, you’ve got a goal to shoot for as well as a realistic plan.

If you want to find out what to expect instead of being safe, you will have to do some competitor research. All that means is currently using Airbnb or another rental channel to find similar properties in your area. You’ll be able to look at their availabilities that will assist you make some assumptions about your property.

There are just about as many beach house rentals out there as there are fish in the sea. So how do you create a listing that swims against the stream? If you’re thinking of diving in, here are our expert tips for standing out in the audience.

Choose a Punchy Title

You only have a matter of seconds to grab the attention of potential renters. So instead of titling your listing with something generic, such as”Luxury Beach House,” select something more click-worthy:

“Beachfront Paradise with Infinity Pool and free SUP boards, just 350 steps from the beach” has a nicer ring and the power of visuals. All of a sudden, renters can picture themselves relaxing in the pool and walking to the beach with a SUP board tucked under their arm.

Befriend a Blogger

In the digital age, advertising doesn’t always mean what it used to. There are bloggers everywhere that have thousands of eyes on their websites and are constantly looking for fresh content.

Find one with a hefty social media following and a target audience similar to your own, and offer to partner with him or her by exchanging a complimentary stay for free promotion on their site. Bloggers will offer up information on their monthly traffic and report back to the achievement of articles related to your rental.

Understand the Power of Pretty Pictures

As good as your filtered iPhone photos seem, nothing beats the quality of professional photography. Consider hiring a pro to capture your rental in its very best light (literally).

Typically, bright and airy photos are better for vacation rentals than darker, saturated images. Also, create a shot list for your photographer — and don’t leave out details such as an outdoor shower or a group of framed fan coral.

Create a Killer Website

Listing on Airbnb and VRBO is great, but having your own website for your rental adds an extra level of professionalism.

Website-building tools such as Squarespace and Wix make it easy (and affordable) to create one from a template, with small bonuses such as a contact form and guest book where past renters can share photos and stories from their stays.

Be Social

Social media is the gift of self-promotion and a requirement if you want to grow awareness for your rental. Platforms such as Instagram, YouTube, and Facebook are particularly useful; YouTube is perfect for sharing fast video tours of the home, while Instagram can lure renters with beautiful photos of both the home and your town.

Facebook is great for engagement and for targeting audiences in specific locations through their sponsored content tools (available for a small fee).

Tag It

Part of becoming socially savvy with your rental is understanding how to use hashtags. Create one that’s unique for your home (#BahamasJewelBox is far better than just #BeachHouse). In addition, use hashtags that might be searchable for a particular topic or location (browse local bloggers or visitors bureaus to see what others are doing) to give your articles broader reach.

GeoTagging, which allows your photographs to be searchable by location, is another great resource.

Team Up

Whether you have several rentals in 1 location or know of neighbors who also rent out their beach homes nearby, advertising more than 1 location on your site is a great way to target larger collections. If you know the choices in your area, you can make it clear that 25-person reunions are just as welcome as a family of four is in yours — and others’ — homes.

Use AD’s

If you’d rather not put as much time into promoting your rental, let Google do it for you. Google AdWords is an online advertising tool that aids your website reach prospective renters based on specific criteria.

It is a competitive world out there folks, and the vacation rental market is no different from any other with thousands of cottages, cabins, villas, gîtes and vacation homes jostling to grab the attention of the rental public. To get their attention, the number one priority is to make sure that your listing has’eye candy’ appeal — lots of extremely good photos showing off all the best features. Here’s a few specifics you could consider

Post great bedroom photographs — attractive and comfortable bedrooms is always a must. This is an inexpensive way of creating a designer look in any style of property and it sells.

Add features your local competition doesn’t have — net access; home theatre system; additional watercraft; a hot tub or sauna. Think hard. Why would a potential renter choose your place over one that is similarly priced with similar fixed features? It is all in the extras you offer and the more you can differentiate the more likely you are to attract the conversions.

Make your site sticky — if you have lots of information on your site that makes it interesting they are more likely to stick around.

Utilize social media to get the word out. Use Twitter, Facebook and YouTube to broadcast your message. Start by listing with Second Porch.

Make guests feel welcome from the minute they enter your listing or site — construct your website as if you have been a host where nothing is more important than inviting your visitors.

Appeal to all their senses in your text and help them out by making it easy to navigate.

Your vacation rental is more than a lifestyle, it is a business. And, home-sharing websites, such as Airbnb and HomeAway, are more than just platforms, they’re businesses as well.

As such, vacation rental websites are out to ensure guests have a great experience and their search engine algorithms can make or break your success as a host.

Understanding and using these search algorithms will optimize your listing to increase visibility which will drive up your booking rates.

Based on a recent webinar hosted by Pillow’s Charlie Ryan, here are six ways to increase your vacation rental SEO on Airbnb and HomeAway.

Use Great Photos to Increase Your CTR (click-through rate)

When a traveler’s search yields a myriad of choices, how do you ensure they click on your listing? Your thumbnail photograph (which should be your best photograph ), will be the largest determining factor on whether a potential guest will click-through to your property listing. Interestingly, getting a guest to click-through is a lot more significant than a single potential booking.

Your higher click-through rate will inform Airbnb that travelers enjoy your property and they’ll reward you for it. Listings with higher click-through rates are catapulted to the top of the platform’s search results list by the algorithm, exposing your property to more potential guests.

Bear in mind, booking platforms will do everything they can to guarantee a traveler not only becomes a guest but becomes a guest who had a great stay and therefore becomes a repeat customer.

Once the traveler has clicked-through to your full listing they’re likely to immediately head for the remainder of your photos. Which is why you’ve read so many articles about the importance of having quality images. You may think of yourself as the next Annie Leibovitz, but sometimes it’s best to leave photography to the professionals.

Airbnb offers free photography for hosts and brands like TaskRabbit let you source freelance photographers in the local area. HomeAway suggests using 24 photographs (the maximum you can use on the platform), which also boosts your listing and increases your vacation rental SEO.

Fill Out Your Listing

A good listing description will increase your booking rates, especially if you utilize Instant Booking features. If your listing description is done, you minimize the need for a potential guest to reach out to you and maximize the chances they’ll have all the information required to instantly book your property.

With search algorithms, the higher your conversion rate (percentage of those who click-through and actually book your property), the higher your property ranks in the search result pages. An excellent conversion rate articulates that guests enjoy your listing and can easily book your property — an attribute that Airbnb and HomeAway pursue.

When creating your listing description, keep the following tips in mind.

Mention the design style of your property, what sort of mattress (and how many) you have, and your Wi-Fi speed. At Pillow, we have found the majority of questions come in about the actual sleeping surfaces and the availability of Wi-Fi. With a service such as Homestyler or RoomSketcher to display a floor plan on your listing is also a benefit that many guests appreciate.

Advertise Amenities

Guests often use filters when searching for rentals. Maintaining your amenities list updated will make certain you’re not unnecessarily eliminated from a search query. In addition, highlighting amazing amenities will not only set you apart from your rivals, it’ll further validate your nightly rate.

As mentioned, Wi-Fi is the most amenity in vacation rentals, with 38 percent of guests listing it as their top property must-have.

Guests will need to understand the benefits of your property and the reasoning behind your nightly rate. When they do, you’ll see an increase in booking rates. The platform algorithms will also take notice, pushing your listing closer to the top.

Vacation home rentals are often great deals and can make for great fun with family and friends.

Vacation rental homes typically offer you some additional freedom and choices to work with. For example, you can often get more space for your dollar than hotel rooms and they usually have kitchens and appliances that will help you save money by preparing meals.

They can be excellent for large groups traveling together, offer fun extra amenities and provide a feeling of a community’s local flavor.

However, vacation home rentals do entail certain risks personally, legally and financially. Here are eight things to consider to make renting a vacation home a great experience for the family:

Use a reliable vacation rental company that offers protection policies and guarantees.

Bulletin board websites. Websites that specialize in vacation rentals by owner such as HomeAway™, Airbnb and FlipKey offer bulletin boards that allow homeowners to post their own homes as vacation rentals.

Many (although not all) of these types of companies offer basic safety features such as background and address checks, uncensored reviews and systems to flag or remove posts that they suspect are fraudulent.

Many of these companies will also offer you a refund for subpar rentals and offer additional vacation insurance options, protection plans and guarantees.

Some companies will automatically refund your money or find you a replacement if you realize the place isn’t as advertised as soon as you arrive. Others have optional guarantees you can purchase.

Curated sites. In addition to bulletin board sites, you may also want to consider renting through an agency that manages”curated” vacation rental properties. These properties have been vetted by the agencies and the agencies have contractual responsibilities to you as a renter.

Agencies with curated rentals usually offer a limited number of rentals in specific areas.

Rental fees from curated agencies may be higher than those from vacation rental bulletin boards, but they are a fantastic way to minimize many of the risks of renting a vacation property.

Check if vacation rental homes are legal where you intend to rent.

Some vacation destinations such as New York and San Francisco have regulations forbidding homeowners from renting residential properties for terms shorter than a month. These regulations are meant to protect hotel-tax revenue and guarantee an ample stock of permanent housing for residents.

Some cities prosecute property owners who violate the regulations while some attempt to permit vacation rentals and assess taxes on renters. Other towns are still determining the best way to handle such vacation rentals.

Think about the insurance implications.

When you are renting someone’s home or condo, what happens if your personal belongings are damaged or stolen, someone in your family gets hurt or you damage the rental property as you’re there?

A good deal of it depends on whether you purchased vacation insurance and your insurance covers you — and what sort of vacation home insurance the owner has on the property.

Homeowners or renters insurance coverage.

Homeowners policies regularly provide security for off-premise destruction or theft, which covers your possessions while they are out of your home.

If your homeowners policy does not contain off-premise coverage as part of its standard coverage, you may be able to purchase this coverage for an additional charge.

Examine the liability portion of your policy to determine your level of coverage for accidents that occur outside your home. To be safe, you may want to consult your insurance carrier, the home operator, the rental agency and perhaps even an attorney to clarify the full scope of coverage for difference circumstances.

The rental home owner’s coverage . For vacation homes that are for rent by owner, the homeowners insurance prices will increase and additional coverage may need to be purchased.

The insurance needs will depend on how often the property is rented out and for how long. For a one-time short-term rental, a simple extension (known as an “endorsement”) can be added to the existing homeowners policy.

On the other hand, if the vacation home is regularly rented out, a separate business coverage or a landlord coverage may be required. While some rental services, such as Airbnb and VRBO™, offer coverage for homeowners, it is important to read the fine print to determine limits and exclusions.

Ask questions to help you understand what you’re getting with your vacation rental home.

Here are a few questions you may want to ask the homeowner to be sure you understand as much as possible about the property:

How can I get around? Are items close enough to walk? Do I need a car? Is there convenient transportation? If I bring a car, is covered parking included?

What amenities are nearby? How far are they? Grocery stores?

Restaurants? The beach? Other entertainment attractions? The airport? In addition to asking the owner, you can also use mapping services that will assist you get a sense of the location and nearby amenities.

Is the neighborhood or apartment complex noisy?

Do the neighbors know the home is being rented? Do they approve?
How available are you if I have questions? Who do I call if something breaks or I have another problem?

• Are laundry facilities available?
• Are linens and other basics included such as sheets, towels, beach towels, toilet paper, paper towels, hand soap, dishwasher detergent and laundry detergent?
• What extra amenities do you supply?
• Is Wi-Fi available?
• Is the property kid-friendly? Do you allow pets?
• What does the cleaning fee cover? Am I expected to do any cleaning before I leave?

Check up on the rental homeowner

Before you sign anything or make any payments, do a little research to help you check up on the owner and the property:

Don’t rely on just electronic communication. Speak to the property owner over the phone that will assist you get a feel for them.

Ask the owners for referrals from other renters. Speak to them by phone as well.

If the property is part of a homeowners association, consider contacting the association to verify that this person is actually the owner.

Consider contacting the company that does maintenance or cleaning to verify that they do the job and ask about the status of the property. You might also wish to inquire regarding the status of the property.

Read the owner-written property descriptions carefully; don’t just skim.

Read reviews of the property and the homeowners carefully. The more favorable reviews from renters similar for you, the better.

Consider looking up the owner and the property on the internet.

If you have a weird feeling about the owners or they don’t look helpful from the start, trust your gut and walk away!

Get a contract for renting the vacation home.

Before you make any agreements or payments, make sure you have a contract outlining specifics, such as:

The arrival and departure dates.

The method, timing and full amounts of all payments including additional fees such as deposits, pet fees and cleaning fees.

What situations might cause the owner to withhold your deposit.

The cancellation policy.

Don’t skip the fine print and don’t hesitate to ask the owner to change contract language you don’t like. You may also want an attorney to review the contract before you signing.

Pay smart.

If you rent through a well-known vacation rental site or agency, you should be able to pay by credit card. Credit cards offer you the most protection against fraud and wrongful charges.

If you’re not able to use a credit card, your option should be an online money transfer service like PayPal, which also offers some protections against fraud. Avoid cash payments whenever possible.

Review the property once you arrive.

As soon as you arrive, go through the property searching for anything broken, damaged or especially worn and allow the operator or agency know straight away. If there are any significant problems, take date-stamped images for proof. In most cases, they’ll know about the problem or take your word for it.

Take special notice of things you might not use the first day but could put a real damper on your trip if they’re broken — heating and air conditioning systems, showers, faucets, toilets, appliances, doorknobs and door locks.

Vacation rentals can save you money while offering all the comforts of a home away from home. But how do you know you’re getting a good deal? And with more people than ever opting for rental properties over resorts, how do you snag that hidden gem? Here are a few tips to bear in mind.

KNOW WHAT YOU WANT

Do you plan on lounging around or being out and about? Are there children in your group? How important is that ocean view, really?

Knowing your preferences will help you find the right rental without overspending. Make sure to coordinate with your group beforehand so you’re getting the best deal for everybody.

GET YOUR TIMING RIGHT

The general rule with vacation rentals is to book early. Indeed, unlike hotels and airfare, there’s no virtue in waiting to book that in-demand villa or a beach house. Plan a year in advance, if you can. The exception is if you are headed to a popular destination, where supply can outstrip demand for rentals. In that case, you can often wait until the last minute and see significant price reductions.

BE FLEXIBLE WITH YOUR DATES

If you’re planning to visit popular destination in the summertime, get ready for sky-high prices and fierce competition on rental properties. Move that vacation up to springtime or back to the fall–which many seasoned travelers argue are the best seasons to visit anyway–and you will find much better prices and availability.

Booking sites often feature fare charts that allow you to track rates over time. Reserve at the last week of off-peak season and you might save hundreds.

KNOW YOUR TERMINOLOGY

Especially if you’re booking through a rental association or co-op, know the distinctions between terms such as”Beachfront” and”Oceanfront” (only the former guarantees you are on the water).

“And “Garden View” can mean just about anything. Always ask for pictures of the rental property if none are provided online.

SEARCH MORE THAN ONE SITE

There’s a good chance you have one website for rental searches. But getting the best selection means examining listings from multiple sources. Especially if you know the area where you want to stay, you need to cast a wide net.

Websites that aggregate listings are a great start, but don’t forget about location-specific websites, which can have high-quality listings that fly under the radar.

SAVE MONEY, BUT DON’T BE TOO CHEAP

You don’t want to overspend on space and amenities you won’t use or appreciate. However, you also don’t want to spend a week in a glorified broom closet just to save a few dollars. Consider what you will need–and also what you’ll enjoy.

STAY SAFE AND SECURE

The overwhelming majority of online rental listings are legit. Yet the risk of fraud is still very real, with numerous renters getting ripped off in recent years. The number one security principle, according to experts, is to contact the property manager beforehand. Ask questions, gather info, and walk away if anything looks fishy.

Many sites provide built-in safety measures, and reviews can oftentimes identify any red flags. Also, make sure to use a credit card for any purchases, since they usually have built-in fraud protections.