How to Convert a Home Into a Vacation Rental Property

Want to convert your home to a fabulous vacation rental?

Making the decision to convert your home into a vacation rental property requires a comprehensive plan. There are some specific steps that you need to take to ensure that you appropriately prepare to turn your home into a profitable investment property as a vacation rental.

Things You'll Need

• Durable home furnishings
• Basic household necessities (plates, service-ware, flatware)
• Fire extinguisher
• Smoke detector
• Carbon monoxide detector
• Larger hot water heater

Instructions

1. Check zoning restrictions in your neighborhood. There is a possibility that your zoning does not permit such a property use.

2. Obtain a zoning variance if there is a prohibition against using your property for vacation rental purposes. Seek qualified and experienced legal representation to assist you with this task.

3. Make basic repairs and cosmetic improvements on the property to ensure that its appearance is as appealing as possible.

4. Consider the type of furnishings that you will include within the property. In this regard, the buzzword is durability.

5. Maximize the sleeping space available in the house.

6. Consider adding a larger hot water heater to the premises to accommodate larger numbers of people who may be vacationing in the property.

7. Stock the residence with necessary utensils such as plates, service-ware and flatware and other basic necessities that will be required by guests using the property for vacation.

8. Make certain that the residence has properly functioning smoke and carbon monoxide detectors.

9. Ensure that you place fire extinguishers and first aid kits in readily accessible locations in the residence.

10. Purchase an umbrella liability insurance policy. You want a policy that covers losses involving the premises as well the contents (property) within the residence. Additionally, the policy needs to cover injuries sustained by guests at the vacation rental property.

11. Test the property by relying on your own friends and family members before you "open for business." A testing process will permit you the chance to identify any problem areas that need to be resolved.

References

• Real Estate Investing For Dummies, 2nd Edition, Eric Tyson & Robert S. Griswold, 2009
• How to Rent Vacation Properties by Owner Second Edition, Christine Hrib-Karpinski & Christine Karpinski, 2007
• The Complete Guide to Second Homes for Vacation, Retirement, and Investment, Gary W. Eldred, 1999

Resources

• American Bar Association, Section of Real Property Law