Sunday, June 24, 2012

Vacation Rentals – Huge Rents… Any Profits?

Long time residential real estate investment expert Leonard P Baron discusses myths and challenges of vacation rental ownership.  Professor Baron's suggests:


     “The best two days of a vacation rental owner’s life are the day he buys it and the day he sells it…”


Professor Baron compares VR operational costs and potential profits to those of long term rentals, and concludes that the opportunity for profits is considerably less with vacation rentals.  This is true, but his argument ignores the fact that many VR owners are not operating their homes as for-profit operations.  Retaining ownership of a family asset, planning for retirement in a desirable community and other motivations have significant value that doesn't show up on a yearly financial statement.


Here is the Professor's view...
Read the entire article here...

Doug Coates

2 comments:

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  2. I truly like to reading your post. Thank you so much for taking the time to share such a nice information.
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Thoughtful comments are welcome, whether you are in favor of vacation rentals or concerned about the impacts of VRs on your community. Comments that contain advertising, including ads for properties, will be deleted.