Are you on the fence about investing in a vacation rental property?
Perhaps you've heard success stories of people who're earning passive income from vacation properties and you are tempted to invest. You might also have heard of investors who have struggled to find success in this market.
So, do vacation properties really make money?
If you need expert insight into the world of running a vacation rental business, you've come to the right place. Read on to discover important details about investing in short-term rentals in Austin, TX.
The Earning Potential of Vacation Rental Properties in Austin
Travelers are the primary target market for vacation property owners. Considering that Austin receives over 30 million visitors every year, it's safe to conclude that there's a thriving market for vacation rentals.
If you're torn between investing in a long-term rental property and a short-term rental because you don't know which of the two has a higher income potential, you're better off betting on vacation property.
However, while vacation rentals have a higher earning potential, they also require more work than long-term rentals.
Factors That Will Influence Your Earning Potential
The fact that Austin has a vibrant market for short-term rentals doesn't necessarily mean every property owner is making bank. That's because various factors can influence your earning potential.
Let's look at some of the key ones:
Specific Location
Some locations in Austin are more popular with travelers than others. If your rental is in a location that's frequented by travelers, like Downtown Austin, you're in a good position to get a steady flow of guests.
When you're looking to purchase a vacation property, do some market research and identify hot locations.
Type of Property
There are different types of vacation properties you can buy, ranging from a studio apartment to a luxury mansion.
The type of property you buy can affect its financial performance as a vacation property. For example, if you buy a single-family home, you might struggle to attract guests if it's in a location that isn't popular with group/family travelers. On the other hand, a studio or 1-bedroom apartment will easily find guests if the place is popular with solo travelers.
Study the profile of the guests that frequent a certain location before choosing the type of rental property to buy.
Rental Management
A vacation rental that ticks all the boxes isn't going to become a passive income generator out of the blue. A lot will depend on how well it's managed.
Some hosts opt to become DIY managers and others outsource everything to a rental management company. If you don't have adequate expertise as a host or are busy with other duties, it's best to hire a property manager. Professionally-managed properties often perform better.
Earn Good Passive Income From Vacation Properties
Earning passive income from vacation properties is a dream for thousands of people in Austin, TX. Now that you know what it takes to be a successful owner, it's time to start working on making the dream a reality.
PMI Austin Metro is here to hold your hand as you begin this journey. As an Austin-based full-service property management company that's backed by a national brand, we have the expertise, technology, and experience to turn your investment into a success story.
Contact us and let's do business!
