South Lake Tahoe is an adult playground. It is actually a playground for all ages with something for everyone. 3 Million everyone’s to be exact. So it is no wonder that we get so many transplants from all around the globe. If you consider Lake Tahoe to be your own personal happy place, you likely have considered buying a vacation home that you can return to every single year. Vacation homes in South Lake Tahoe can be a fabulous source of income as well as a great investment. If you are mulling this idea in your head, you aren’t alone. In 2014 there was a 57% increase in vacation homes sold in comparison to 2013. 1.13 million properties in the United States sold for the purpose of being a vacation home. So should you jump on the bandwagon? Ask yourself the following questions!
Can You Afford It?
Buying one home is a major financial commitment as it is. Buying two is, especially one that is far away, is something you need to really analyze. You will need to furnish the property, pay for property taxes, utilities and property maintenance. If you work with a qualified vacation rental company, a couple of these tasks will be a breeze. If you have evaluated the second set of expenses and can answer yes to the above question, move on to the next scenario.
How often will you use the property?
If you plan on using the property more than a month or two every year, then purchasing a South Lake Tahoe home for sale as a vacation rental is likely going to be worth it. If you are planning on using it less, but renting it out the other months, then once again it is likely going to be worth it. However, if you are stretching it financially and you will only be using the home once or twice a year for a couple weeks at a time, you may want to think about taking this step a little further.
Are you going to rent it out?
So many people looking for homes for sale in South Lake Tahoe think they can easily rent out the property when they are not using it to supplement the cost of the second home. Basically, people tend to sometimes underestimate what goes into a successful South Lake Tahoe vacation rental. You need to make sure it is furnished, has all the major kitchen utensils, linens, towels, basically all the amenities of a home. You will also need to have someone on call for maintenance issues or available in case something goes awry. As an expert on the vacation rental industry, it is advisable to list your vacation rental in South Lake Tahoe with a qualified management company. After all, if your vacation rental falls short of expectations and folks aren’t getting the “full experience”, they will likely not come back. Or worse, leave bad reviews to keep others from staying. If renting out your home as a South Lake Tahoe vacation property is a big part of your plan, you will absolutely need to go through this aspect with a fine tooth comb before signing on the dotted line.
What is your long term goal?
If you are buying this property with the mindset that you will eventually retire in this property for sale in South Lake Tahoe, then using it a few times a year and renting it out the rest of the time is an excellent plan. If you don’t have a long term plan at all, you may want to push pause for just a second and chat with a qualified South Lake Tahoe Realtor about what comes with owning a vacation rental in South Lake Tahoe.
Have any questions on this topic? Give me a call! I’d be happy to help.
