Close to Popular Destinations

Many vacation homes are conveniently close to today’s most popular vacation destinations. Being just minutes away from these fun vacation spots can save you a lot of local travel time. If not within walking distance, many homes are close to public transportation or vans and shuttles operated by vacation destinations.

The Feel of a Real Home

Vacation homes are designed to feel as close to your real home as possible-much more so than a motel or hotel. Families are increasingly discovering that these homes can be very accommodating to children and teens. That’s because they often have two or three bunk beds and several trundles. These allow children to share bedrooms. A number of these homes also have four bedrooms, which can sleep as many as 16 (for sports teams and girl/boy scouts groups). Some homes even have sofa sleepers in the family room.

Lots of Entertainment Options

To keep kids, teens and parents entertained, many vacation homes provide a wealth of entertainment options–something they need after a day of vacationing, The homes feature action-packed gaming consoles like X-Box, DVD players and smart TVs, Also included are Foosball, Netflix, and Wi-Fi access for smartphones, tablets and laptops. These connectivity options provide plenty of information and entertainment for all ages.

Private BBQs, Swimming Pools, Relaxing Spas

Kids, teens and especially parents need to relax after a busy day on rides and adventures. Vacation homes allow families to do what they usually are unable to do in a hotel or motel-make burgers, hot dogs or steaks on a BBQ–in complete privacy. No need to reserve public BBQs or share space with strangers. Most homes come with a spacious outdoor dining table and lots of chairs. They also feature a relaxing spa and/or hot tub-for the exclusive use of the family.

Home Cooked Meals

Unlike hotels and motels, which offer inflexible (and costly) menus, most vacation homes allow families to prepare home-cooked meals that fit the unique preferences of their health and taste needs. The homes feature fully appointed kitchens that come with stainless steel appliances, granite countertops and specious breakfast bars. The kitchens even include cooking utensils, dishes, flatware, pans, bakeware, and paper and cloth towels for added convenience.

Affordable Cleaning Options

Hotel/motel laundry services can be really pricey for a family. Most vacation homes solve this problem by including a washing machine and dryer. Housekeeping services are also available to keep things nice and tidy while you’re vacationing.

I own five historic Key West vacation rentals, and I market and manage over 50 for other people. I have been in the vacation rental business since 1994, when I turned a property I owned in Key Largo, Florida into my first vacation home. Based on decades of experience, I offer below 8 of the most basic and common property pitfalls to avoid when owning a vacation home. In all the years I’ve been in this business, I continue to see people make the same mistakes over and over again that could be easily avoided with forethought, better planning, and some professional guidance.

While it’s not pleasant to talk about the negative realities of owning vacation rentals, it is my hope that you can learn from the mishaps of others and be able to maximize the benefits of owning your vacation home. Think these through carefully before you ‘take the plunge’ into ownership of a vacation home.

Don’t Buy the Wrong House:

Seem like an obvious statement? Well, the adage ‘Hindsight is 20/20′ is a good one to ponder ahead of time in this critical first step. I’ve seen many people ‘fall in love’ with a house or cottage they find while on vacation themselves, and decide it will make an ideal 2nd home and perfect rental. Be sure you ‘knock the romance out of your head’ and carefully consider how desirable a property will actually be perceived by potential guests and if you can afford it. First, find out what size and configuration of properties that are most in demand in the area you want to buy. For example, how many bedrooms and bathrooms do most renters seek? Do guests want historic homes, condos, cottages, studios or does it matter? Is a pool important, or a garden? Are you willing and able to make any needed renovations?

Don’t forget to Make a Business Plan:

Make a basic business plan and determine if you can make enough money through your rentals to justify the purchase. Get the help of a rental professional and an accountant or financial advisor to create a preliminary plan. Learn how much you can expect to pay to operate your vacation property, and how much you can expect earn in income. Get actual or projected occupancy rates from an established local rental agency. Find out what time of year you can expect to rent your home. Is there a short tourist season, or is there a year around season? Some communities have a high demand for private vacation homes and they command excellent rental rates. But other areas have a glut of unsold homes now being offered as vacation properties, driving rental rates down too low to cover the cost of owning a 2nd home.

Don’t Buy a Property in the Wrong Location or Neighborhood:

Carefully research the location, e.g., just because an extra 15 blocks from the center of town or the beach is no big deal to you, this could be too far away and a deal breaker for potential guests. In other words, make sure that the property you buy will be appealing to potential vacationers. And, what do the neighbors think about vacation rentals being operated next to where they live? This has been, and still is, a huge ongoing issue for many communities across the country. Many cities and towns are grappling about whether to allow or restrict short-term rentals. Some neighbors are vehemently opposed to the idea of a ‘revolving door of tourists’ coming in and out of their neighborhood. Other areas are thrilled to have tourists bringing money into their communities.

Don’t Ignore Community Rules and Regulatory Agencies:

As vacation homes have become increasingly popular, many communities have created rules and regulations that restrict and govern property rentals. Contact the community licensing department where you are planning to purchase a vacation property. Find out if there are restrictions on the time and frequency you can rent your home. Find out if you need to purchase a business license or a special transient rental license. Ask if you need to have a health and safety inspection by the city, county, or state. Find out if you need to collect and pay a tourist bed tax and state sales tax. Don’t ignore the rules and regulations. In some communities, code enforcement officers scan vacation rental websites in search of properties that are offered as illegal rentals. Getting caught breaking the law unknowingly can be expensive and embarrassing!

Don’t Pretend You Can Avoid Renovation and Major Repairs:

Be prepared to accept the fact that owning a successful vacation home means that ongoing quality control becomes a way of life. Unless your property is located in an area where luxury and comfort are disregarded as superfluous, expect to renovate and keep your property to a high quality standard. If you want your rental to be competitive in the vacation market, expect to upgrade you kitchen, bathrooms, replace carpets, floors, decks, porches, windows, repaint, landscape, and put on a new roof when the time comes. In some locations you will need to add a swimming pool or at least a Jacuzzi. Make sure the local building department will allow you to make upgrades. Figure out a time to make needed repairs, and mark off time in your rental calendar to do the work.

Don’t Under Estimate the Importance of Housekeeping and Property Maintenance:

Even after your vacation home is upgraded and operating, you must commit to ongoing housekeeping and on-call maintenance services. If you don’t provide good housekeeping services and regular property maintenance to keep the property to a quality standard, you will most likely live with constant complaints. And you can expect unhappy guests who may be compelled to write bad reviews about your property on internet vacation travel logs and rental websites. A maintenance person must be on-call to fix the myriad of little things that happen in a house such as clogged toilets, mal-functioning a/c or heaters, swimming pool problems, mal-functioning internet connections, and TV remotes to name a few. The more your property is rented, the more maintenance and housekeeping you need o provide.

Don’t Think Your House Can be Successful without Proper Furnishing and Staging:

A common scenario is for new owners of a 2nd home to think they can furnish their property with a hodge-podge of inexpensive garage sale items or discarded personal items. When people do this, they end up with a house that looks like a second-hand store or their own garage sale. If you have a knack for decorating, then go for it. Pick a décor style have fun. It is perfectly acceptable to have a mixture of old and new items, but in the end they all have to work together in a unified style. Buy comfortable furniture – a nice sofa and easy chairs. Choose an attractive micro-fiber fabric, its ideal for vacation homes. Make sure you provide good bed mattresses and the right bed sizes. Most travelers today want king or at least queen size beds. Buy a larger flat screen TV for the living room or den. Unless you have the know-how and the time to do these tasks, hire someone to do them for you. Many furniture stores have staff decorators who offer this service for free.

Don’t Believe it is Simple to Successfully Market and Manage Your Vacation Rental:

If you’ve read this far, you know there is a lot more to owning and operating vacation properties than first meets the eye. With the proliferation of mega vacation rental websites, that make it easy for home owners to advertise their own property, it can seem simpler than it is. There is a lot more to this business than putting up a web page and answering email inquiries and phone calls and keeping an availability calendar. The task of writing rental contracts, collecting money, collecting and paying taxes, staying current with community licensing and rules and regulations, checking guests in and out, providing housekeeping and ongoing maintenance, dealing with complaints, dealing with property damage done by guests, and addressing unhappy neighbors can be daunting. And, I haven’t even addressed the demands or creating a successful marketing campaign. In today’s market it goes beyond writing good ad copy and providing quality property photos on a website. Be prepared to engage in social media such as Facebook and twitter to reach your potential rental guests.

1. Privacy

A vacation isn’t much of a vacation when you’re surrounded by adoring fans screaming for your autograph, or ducking paparazzi around every corner. Which is why you don’t see major movie and TV stars spending their vacation time at hotels. Instead, famous faces know that in order to really get away from it all, the key is to check in to a private vacation home. Unlike hotels that cater to the public, a vacation home offers guests a real escape from the outside world, with a level of total privacy a hotel just can’t match. So they can bare all by the pool without worrying about winding up on the cover of a tabloid next week.

2. Space for their stuff

The rich and famous don’t typically travel light. They may be heading out of town to get away from it all, but at the same time, they need to make sure they’re ready for anything – from lunch with the big-name director who happens to be in town to a formal dinner party on a yacht. That’s why the stars tend to bring MORE than what they need, just in case. Which is why they’re bypassing the big hotels and settling in to roomy vacation homes – where they have plenty of space for the tuxedo, the ball gown AND the scuba gear.

3. Room for an Entourage

Just as they don’t travel light, celebs also don’t travel alone. There’s the personal assistant, the personal trainer, the hair and makeup guy (or gal), plus family, friends, acquaintances and hangers on…in other words, more people than you can possibly fit in even the largest hotel suite. And that’s why the stars are bringing the whole entourage to roomy vacation homes – where everyone can spread out and enjoy their time together.

4. Exclusivity

Celebrities like to stay on the cutting edge of trends – they don’t follow the herd and do what everybody else is doing. Why should they, when they can afford to set the trends and set themselves apart from the crowd? So instead of following the masses to whatever resort is popular each season, the stars prefer to create a vacation that is uniquely, exclusively theirs by escaping to a luxury vacation home. After all, what could be more exclusive than your own, private paradise, reserved only for you and the people you want around you?

5. Peace and Quiet

Let’s face it – people are noisy. And people who have a lot of money to spend on fancy hotel rooms are no exception. Their kids fight and splash in the pool. They have parties at all hours of the night. They argue, they laugh, they basically live their lives. Which is fine for them. But if you’re on vacation trying to get away from it all, it’s not necessarily fine for you. No wonder so many celebrities are skipping noisy hotels altogether and opting to stay in peaceful, private vacation homes. That way, if a wild party keeps them up all night, at least it will be their wild party!

6. Freedom

A vacation is the time to do what you want to do when you want to do it – and no one knows that better than celebrities, who are used to getting their own way. But even the most luxurious hotel has limits. Hankering for a late-night swim after the pool has closed? No can do. Feel like spending the day in your bathrobe without getting dressed? You’ll not want to leave the privacy of your room if you stay in a hotel but a vacation home gives you the freedom to spend your vacation the way you like. And if that means eating a grilled cheese sandwich in the pool at 2:30am, go for it!

7. Luxury

In travel, as in their day-to-day lives, celebrities demand the best. And they’re finding the best in luxurious, comfortable vacation homes. Dining rooms where they can entertain friends. Spacious living rooms where they can spread out and enjoy all the comforts of home. Their own, private swimming pools and Jacuzzis. With so many options, there’s no longer any reason to settle for less than the best. Which probably explains why, when it comes to travel, vacation homes are topping the list of celebrity trends.

So now you see why the rich and famous are making vacation home rentals such a fast-growing travel trend. And the best part is, these advantages aren’t just for celebrities.

Montana is a state full of beautiful mountains belonging to the Rocky Mountain range, approximately 77 named and many unnamed. Nicknamed as “Land of shining mountains” and Big Sky Country”, Montana is a vacationer’s paradise. It is a big state and known for its wilderness and national parks. Owning a vacation home in this state is a logical thing. Whether it’s a summer golf residence, large mountain acreage, an undeveloped farm and ranch, or river fishing retreat, funding for vacation property in Montana can be obtained from Resort Funding/Montana Mortgage. Also the sheer variety of funding choices that we offer is unbeatable.

If it is a condo that you intend to buy it is wise to opt for a Montana condominium loan even if you can afford to buy a condo outright. But if you prefer purchasing a vacant plot and building a house on it, we feature Montana construction home loans. These loans take care of the heavy expenses that normally happen during construction of a home. Usually only interest is charged during the construction of the house and then once the construction is over, usually within 6-12 months, the loan turns into a traditional mortgage program. Lot loans in Montana are useful for people that wish to buy land immediately but defer constructing a home on the land to a later date.

Washington Vacation Home Loans

Washington State offers a climate that is predominantly oceanic in the west due to its proximity to the Pacific Ocean. Washington’s claim to vacation fame is its sandy coastal beach regions, snow covered mountains, and deserts. Recreational activities can be enjoyed in the state’s many terrains. Washington also can satisfy the cultural hungry with a host of cultural programs all through the year.

While the real estate boom slowed down in the entire country, Washington state held the promise of rising real estate prices in 2006 (Source: CNN Money – This is because Washington lagged behind in home ownership. The strengthening of job scenario in the state could mean that renters are converting in to owners and also into vacation homes.

If you are contemplating building a vacation home in Washington then construction home loans can ensure that your home gets built within a stipulated time period without any hassle. One time construction loans in Washington are powerful programs that take care of lot purchase, construction, and permanent loan all at once without bothering about reapplying and qualifying again.

Condotels are a branded lifestyle for affluent vacation home owners and in Washington they do not come cheap. But the amenities and the cachet of a luxury hotel are worth paying for through Washington condotel financing.

Idaho Vacation Home Loans

Idaho, especially McCall, Idaho has not become as crowded as most of the busy vacation destinations in the USA. Though the tourist destinations in Idaho are as picturesque and as enjoyable as you can get it still retains its originality and freshness. There are a myriad of activities that vacationers can indulge in Idaho. The amenities like healthcare and connectivity also leaves no room for complaint in Idaho.

Your dream of buying a vacation home with a view of snow capped mountains or placid lakes can take shape with Idaho construction loans. A vacation home in Sun Valley, the number 1 skiing resort in the country; or overlooking Lake Payette in McCall; or in Boise allowing you to go white water rafting in Coeur d’Alene or Island Park as an alternative to Jackson Hole Wyoming can be financed through many of Idaho vacation home loan programs. Depending on your need you can choose from Idaho lot loans, Idaho construction loans, and one time construction loans Idaho. Each of these financial programs has several flexible policies that a prospective buyer can opt according to his specific needs.

Idaho, the snowmobiling paradise, is truly a vacation destination and its essence can be savored more by a vacation home owner.

Wyoming Vacation Home Loans

The majority of the Wyoming state is dominated by Rocky Mountain ranges and rangelands. The mountain ranges of the North West taper off in to beautiful open plains in the east in Wyoming. Such diversity makes this musically sounding state a sanctuary for vacationers. Travel and tourism industry along with mineral extraction industry form the main driving force of the economy. Millions of tourists visit Wyoming every year. The national parks: Grand Teton National Park and Yellow Stone National Park are just two of the main tourist attractions of the state. Nicknamed as the “Cowboy State”, Wyoming has been ranked as the 3rd most livable state in the USA for 2007. Yellow Stone National Park and the Devils Tower are the two oldest national parks and monuments, respectively, in the USA. Jackson Hole Resort and Teton Village are undergoing major on-mountain and village development as are surrounding resort areas.

Of course the vacation homes are costlier in this state simply because of the booming tourism industry. But that should not deter interested buyers as Wyoming vacation home loans are here to help achieve their goals. Whether you are looking for condotels, luxurious villas, modest cottages, or simply land to build your dream vacation home your financial needs can be met by Wyoming lot loans, Wyoming construction loans, or one time construction loans Wyoming. All these Wyoming vacation home loan programs have features that can suit any type of buyer. For example the lot loan program of Wyoming can be exempted from proof of income.

Jackson Hole, Wyoming is a premier vacation spot in the country. And Wyoming vacation home loans can get you a home there as well as in any of the important places of this essentially Wild West state. We often can provide zero lender fee loan program options.

In the Final Analysis

The reasons for buying a vacation home are not often financial. There are overriding emotional, recreational, and family reasons for buying a vacation home. But that doesn’t mean financial considerations can be overlooked. The real estate market for vacation homes has its own set of risks, especially if you are considering reselling it in future. Due diligence and ample amount of research is advised before zeroing on buying a vacation property. If selected with weighing the pros and cons properly your vacation home could end up as a peaceful retreat as well as a solid financial asset.

A buyer should be prudent enough to opt for a property that meets his vacation needs. Several factors should be taken in to consideration while buying a vacation home in any of the above mentioned five states. Direction of future growth in that particular area, possibility of price appreciation, commuting distance from the nearest city or town (in worse weather conditions), availability of healthcare during emergencies, help accessible during natural disasters, and the presence of friends and relatives or the presence of a community in the proximity should be thoroughly considered before deciding to buy a vacation home. Some local rules also should be studied as they can make a lot of difference to the purpose of your vacation home buying. A local caveat restricting short term rentals can work against your aim of earning substantial revenue through rentals.

Securing funding for a vacation home is not that difficult as actually there is a wide range of financing alternatives; a prospective buyer should study the pros and cons of all loan instruments. When deciding about a fixed rate or an adjusted rate, the time period of repayment of the loan, various conditions and clauses of a loan instrument should be studied properly.

A vacation home will be able to provide the desired relaxation and rejuvenation if the financial aspect is dealt with wisely, suiting to your budget and balancing your needs. Hard practical sense and not dreamy woolliness will help a lot in making financial decisions. If chosen correctly vacation home loans can turn your cherished dream become a sweet reality. Then you can have a better home away from home.

Partnering up sounds great on paper, but purchasing a vacation home with family and friends can be risky. After all, if things do not go well, it can spell the end of your friendship. Not to mention you may end up in a legal battle over the home. After all, you might already be commonly renting a vacation place with said friends or family. Or you could take turns using the house, so you don’t actually overlap.

Still, this approach can also turn into an express lane to disaster if you don’t navigate the relationship with care and really learn how to purchase a vacation home.

Do not panic! Before you sign on the dotted line, here are some important questions to protect your finances and also leave your ties of friendship or family intact.

TIC or LLC?

Ownership of property by 2 or more parties who are not married – friends, relatives (it makes no difference) can be setup as a limited liability corporation (LLC) or as a tenancy in common (TIC). And while setting up an LLC will entail hundred dollars in additional fees and a tad more paperwork. A limited liability corporation can make it easier to give away or sell an interest in the vacation home and you are treated like an individual for tax purposes, but with the extra protection of a corporate liability shield. An operating agreement will be drafted to establish the obligations and rights of the members in the LLC.

Why this is important when learning how to purchase a vacation home: Under a tenancy in common, somebody who’s injured while in your shared vacation home can sue you and the other co-owners for all you are worth. Additionally, due to the fact that you own a house with somebody else, you’ve less control over who can be allowed to enter the house. So if your nephew wants to celebrate his high school graduation with a blowout party on your vacation home, and somebody steps on a broken glass, it can come back to bite you. This is much less of a risk if you choose an LLC.

Who is responsible for what?

Another reason why you should set up a limited liability corporation instead of a tenancy in common: Limited liability corporations are normally required by law to have an operating agreement. You should have an attorney draft an agreement which clearly explains everybody’s ownership interest.

That ratio, be it 80:20 or 50:50, will determine how costs like real estate taxes and insurance are divided. The agreement should also clearly explain who the manager of the vacation home is, capital improvements and how the maintenance of the home is going to be paid for and performed. The agreement gives the owners a guideline so that everyone knows before they own the place, what the parameters are.

You can think of it as real-estate prenuptial agreement, it’s there to ensure that things run smoothly and head off resentment at the pass. Otherwise any under discussed issues- like who is supposed to close up for the season or even clean out the gutters – can quickly and easily turn emotional.

Who gets which holidays and weekends?

People purchasing a house together should ask themselves if the other owners plan on being at the house at the same time, or alternate in using it, since vacation homes normally have a prime-time of just a few months.

Normally, everyone wants to go to the vacation home at the same time of the year, during school breaks for example. If the owners do not talk about this in advance it can lead to everybody showing up at the home on the same day- which isn’t exactly the tranquil vacation home you have always dreamed about.

If you decide to split, you should work out an annual schedule in advance and also consider rotating who gets the major holiday weekends. You should also agree that swaps and changes can be made but only with the permission of all the parties involved.

To rent or not to rent? / How to purchase a vacation home

From time to time your vacation home is going to be unoccupied no matter how many co-owners you have. If you are a neat freak and do not like strangers sleeping in your bed, you’ll not want to rent your vacation home. However, your brother might want to make some cash by renting out your shared vacation home.

You should hammer out whether you are going to rent out the vacation home so that you can generate income when you are not there. If all the parties agree to rent the vacation home just ensure where you are purchasing will allow that. Some communities do not allow short-term rentals.

What happens if somebody wants out? / How to purchase a vacation home

You should have at least one discussion about how long everybody wants to be on-board and what happens if one of the co-owners wants to sell. Giving the other owners right of first refusal if you want to sell your share is a way to reduce conflict. You should think about if you can afford to buy out a co-owner or if you’ll be able to cover the extra maintenance costs and mortgage in the event somebody wants out.