If you’re moving away but not yet ready to part with your old home, renting out your home can be a great way to generate income. In the right location, vacation rentals can be particularly lucrative. And unlike renting to long-term tenants, turning your home into a vacation rental will give you the flexibility to use it whenever you want. This means you’ll be able to return to your property for personal vacations! Check out the following tips from Cape Cod real estate professional Michelle Sylvia for help prepping your home as a stand-out vacation rental.

Protect Yourself and Your Assets

Running a vacation rental can put your personal assets at risk. One way to protect yourself from liabilities is to form an LLC. This will establish your vacation rental business as its own legal entity, removing any personal responsibility you hold for business-related lawsuits or other legal issues that may arise with guests staying on your property. In addition to liability protection, forming an LLC can also provide tax benefits and make it easier to manage your vacation rental business. Learn how to form an LLC and consider using an online formation service as an affordable alternative to hiring a lawyer.

Make Home Upgrades to Attract Guests

Evolve Vacation Rental explains that making a few upgrades to your vacation home can help you attract guests and maximize your rental income. For example, investing in new, comfortable furniture can make your guests feel at home during their stay. If your appliances are on the older side, consider swapping them out for modern appliances.

Be sure to also provide high-speed internet, outdoor amenities, and tasteful decor. You may even want to do a light bathroom remodel or invest in smart home features, including safety features like a video doorbell, to give your rental that extra wow factor! And don’t worry. If a tenant contacts you with a video glitch, there are great online resources to help you troubleshoot the problem quickly and easily.

Give the bedroom special attention, as people are very particular about getting a good night’s sleep while they are traveling. Consider replacing the mattress and definitely look for an elegantly-designed custom bed set that reflects the character of the space and is made of high quality materials for comfort.

Apply Feng Shui Practices in Your Design

Feng Shui is the ancient Chinese art of creating balance and harmony in your living space by improving the flow of energy. Incorporating Feng Shui principles into your vacation rental design can help you create a calming and peaceful atmosphere for guests, which can lead to better reviews and more repeat bookings. At the same time, Feng Shui can help you make better use of the available space in your rental by creating a sense of spaciousness and openness.

Understand Local Laws and Regulations

Before renting out your home to guests, make sure you understand the local laws and regulations that apply to your area. Vacation rental laws can vary widely by country, state, city, and even neighborhood and can include regulations around zoning, licensing, taxes, and safety.

Some local governments require hosts to obtain a permit or license before renting out their property, while others may have strict rules around noise, parking, or occupancy limits. Failure to comply with these regulations can result in fines, legal action, or even the shutdown of your rental business, so make sure your rental is compliant!

Manage Your Rental Like a Business

If you want your vacation rental to be successful, you must treat it like the business it is. This means creating a business plan, setting goals and targets, and tracking your income and expenses. You’ll also want to establish clear policies and procedures for your rental, such as house rules, check-in and check-out times, and a communication plan for guest issues. You’ll also need to create a marketing plan and build a strong online presence so potential guests can find your rental.

Enjoy the Perks of a Vacation Rental

Turning your old property into a vacation rental can be a great way to generate additional income while also maintaining ownership of your property. By making strategic home upgrades, forming an LLC, applying Feng Shui design principles, and treating your rental like a business, you can create a professional and enjoyable experience for your guests while achieving your financial goals!Are you looking to buy a home in Cape Cod to use as a vacation rental? Contact local real estate professional Michelle Sylvia to get started!