When surveyed in 2022, 80% of Americans said they needed a vacation in 2023. So if you have property in Phoenix, then there's a good chance you can make a decent amount of money with passive income.
However, being a landlord isn't easy, as there are so many moving parts. Plus, you need to go about renting your property out smartly to make the most money possible.
Here's how to maximize your income potential regarding property rental for vacations.
Perform Regular Property Maintenance and Upgrades
Nobody wants to stay in run-down accommodations when on vacation, so it's of the utmost importance to keep up with maintenance. You might think you're saving some money by skipping out on this step, but overall, it'll be tougher to attract lodgers, and your income will fall.
Making strategic upgrades periodically will increase your property's appeal too. For example, things like modern appliances, energy-efficient features, updated fixtures, fresh paint, and landscaping improvements will appeal to vacationers. They'll also be willing to pay more.
Have Effective Property Management
In addition to maintenance and upgrades, your vacation home needs to have effective property management too. Timely responses to maintenance requests, rent collection, and tenant communication are key to keeping your vacation rental income up.
To avoid problematic renters, have a thorough screening process. This can decrease the chances of them damaging your property or paying their late rent (or not at all).
Using a property management service can help immensely here. So consider allocating a small amount of your rental income to it, as it'll reduce your stress significantly.
Set the Right Prices
This may be easier said than done, but it's imperative that you get your rent pricing right.
To do so, do some market research. Set your rental rates competitively based on that, and avoid overpricing, as this can lead to longer vacancies and lost income.
To entice people to stay at your vacation rental property, offer incentives for longer lease terms or prompt payments.
Learn About Tax Deductions
Did you know that you can get tax deductions on your rental properties? These can help keep more money in your pocket, so they're worth learning about.
A good place to start is with the Arizona Department of Revenue. You can also consult with an accountant, which is a great idea anyway. They can provide other tax-related services, such as filing your tax returns.
Again, a property management service can be of assistance here. They have accounting and reporting services that'll make financial management a breeze.
Make Great Money on Property Rental for Vacations
Making your home a property rental for vacations can be a wonderful idea, especially if you have somewhere else to stay. And if you're smart and diligent about maximizing its potential, then you'll have a higher chance of generating a decent income.
Just make sure to regularly reassess your strategies. That way, you'll ensure you're adapting to changing market dynamics, as well as tenant preferences.
Contact us today if you'd like assistance with vacation rental management in Phoenix. We'll take care of everything so you won't have to.
