What makes a VRP best in class? VRPs are vacation rental properties, usually known as high-end or luxury units, that are popular with travelers who want an alternative to cookie-cutter, lookalike hotels in resort towns and famous destinations. If you consider a VRP a real estate asset to add to a portfolio, there’s much to learn. That’s because, while VRPs are an excellent way to get into the real estate sector as an investor, it’s essential to know what to look for.
A short list of essential VRP features is the most innovative way to start. What’s on the list? In no particular order, it’s necessary to include as many core features as possible when acquiring a vacation rental property, particularly one in the luxury category. Screen all your candidate properties to make sure that each one is indeed luxurious, represents an otherwise excellent real estate asset, is in a lucrative location, is not overly large, meets the comfort test, and offers at least one USP (unique selling point), is exceptionally clean, and comes with all the digital connectivity a renter could want. Here are more details about each feature.
The Luxurious Touch
Make an effort to add luxury to the property in any way possible. The point is to transform ordinary homes into ones you can honestly market as luxury properties. That can mean doing several little things, like upgrading internet connectivity to high-speed internet, redoing kitchens and bathrooms to make them more intimate, adding above-ground pools or hot tubs in the backyard, converting dens into yoga or exercise studios, and more. You can finance luxury purchases if necessary, but if you go that route, ensure you will get a favorable ROI.
A Solid Real Estate Buy
While real estate is one of the more productive and profitable asset classes available to individual investors, you should do serious number-crunching on your target properties to ensure they meet the minimum requirements. For instance, when acquiring a second house for investment purposes, please don’t assume that renting it out long-term is the ideal way. Several other profitable and convenient ways to get involved in the rental real estate marketplace exist.
Many investors buy a property in another town or state to stay in it when they travel. At other times, they put it on the market for other vacationers and short-termers. Holiday destinations can be another wise option. It’s possible to rent a home in such a location and then move into it full-time after you retire.
Those are just a few tactics investors can employ by renting out their properties. Note that even under those conditions, you still enjoy regular rental income and long-term asset appreciation. Many modern vacationers avoid high-dollar hotel rooms in congested cities and tourist-trap resort areas. Instead, they look for high-quality vacation rentals with exciting surroundings and an intimate atmosphere. When searching for a second property, consider vacation rentals.
The adage about “location, location, location” still holds for people who choose to invest in rental RE properties. Make sure the location is realistically accessible and not too remote. Additionally, opt for safe places instead of those known for rising or alarming crime rates. Another factor to look at is the recent change in property values in the nearby geographic areas. Suppose they’ve been going up over the years. If they have been stagnant or declining, move on to another site. One way to deal with the location challenge is to connect with an experienced real estate agent who knows the place where you want to buy a second home.
Cleaner Than Clean
Cleanliness is next to profitability, to amend an old saying. But in VRPs, today’s consumers expect not just posh surroundings but immaculate ones. That means taking the time to find a cleaning service that goes beyond the standard. Maintaining spotless accommodations is one of the core ownership duties of those who operate luxurious properties. The good news is there are services in most major and medium-sized metro areas that offer spotless or concierge cleaning services. Find one, pay the higher fee, and you won’t regret doing so.
Available Digital Connections
It’s tempting to think of vacationers as wanting to get away from it all, but those spending a few weeks off work want to disconnect from phones and computers. Many vacationers use their earned leave to enjoy videos on the internet, read e-books, correspond with relatives and friends on social media, and more. Property owners cannot get by offering unplugged accommodations in the digital age. Whether your guests take advantage of Wi-Fi, internet hookups, and high-end video entertainment connectivity is up to them. But full-fledged digital connections are becoming standard among actual luxury rooms, cottages, and houses. If you want to up the game, equip all your properties with all-around Wi-Fi.