How to Start a Small Business for Log Cabin Rentals
Log cabins offer a cozy setting for guests to gather with family and friends. Log cabin rentals are part of a larger vacation lodging market, and are often an affordable option for vacationers during economic downturns. To start a small business for log cabin rentals, you can either buy your own properties and rent them out, or you can contract with property owners and earn a management fee by marketing, renting and maintaining their log cabins.
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Things You'll Need
- Sales tax license (if applicable)
- Business license
- Lodging tax information
- Rental cabin purchase documentation (if applicable)
- Rental management proposal for associates (if applicable)
Instructions
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Organize your cabin rental business. Meet with a Certified Public Accountant experienced with vacation property rental clients. Choose the best business structure for your needs: sole proprietorship, limited liability company, or a corporation. Ask your accountant if your cabin rentals are subject to sales tax in your state. Visit your city or county clerk's office to obtain a business license. Finally, consult with your local tax office to inquire about lodging tax rates and logistics.
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Obtain your rental cabin properties. Select from two methods of obtaining your rental cabins. It's possible to purchase the rental cabins yourself, in which case you're responsible for all homeowner and maintenance expenses throughout the year. Evaluate your year-round rental potential, and ask your accountant to construct income and expense spreadsheets to help with your decision. As an alternative with less overhead, contact friends and business associates who own rarely-used vacation cabins. Construct a proposal that provides your associates with a portion of the rental income, while providing management income to your company.
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Contract with a maintenance team. Your rental properties must be clean and well maintained at all times. To that end, hire a competent and dependable cleaning and maintenance crew. Ensure that all cabins will be cleaned before and after guest occupancies, and that any maintenance issues are resolved promptly. Make sure the team is available on short notice.
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Find cabin rental guests. Advertise in regional vacation magazines and on websites, and also in a vacation cabin magazine. Contract for billboards in areas with strong documented visitor numbers. Join your local Chamber of Commerce and place a cabin rental ad on the Chamber's website. This allows you to reach potential visitors who visit the website for vacation and travel information.
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References
Resources
- Photo Credit log cabin image by robert mobley from Fotolia.com
