Questions and Answers about Owning an Outer Banks Vacation Rental Home
Dread leaving the sun filled beach days and moonlit nights on the Outer Banks? There is no other place like it. With a little planning you can own a piece of the beach with the option of collecting rental income. Owning an Outer Banks Vacation Rental Home, you can live the dream and diversify your investment portfolio. It’s not as overwhelming as you think. It just takes a little research (and a good Realtor). Over half the homes in the Outer Banks are owned by absentee owners and are used as second homes or investment rental property. Vacation Rental Management companies on the OBX are top notch and make life much easier for homeowners. An average rental management fee can range from 16-18% of gross rentals for homes in a full time program. There are also many boutique companies that offer their services al-a-carte if you choose to be more hands on with your rentals.
It’s a good investment. The Outer Banks has been ranked as a top Rental Destination and cited by the Wall Street Journal Market Watch ( August 2013) as one of the Best Places in the U.S. to Buy a Vacation Home. Home prices are affordable on the Outer Banks compared to most resort areas. The rental season is longer than most running from Easter to Halloween. Family Reunions, Holiday Get-Togethers and Weddings also fill up weeks in the off season.
There are a few things I suggest to my clients when considering buying a beach home for rental income:
- Location, location, location. The closer to the ocean the better. In the off season people want to have a great view.
- Amenities. Pools, Hot tubs and Theater Rooms all add weeks to your season.
- HOA Fees. Know the financial health of the Association. Make sure the Association has the proper reserves needed for upcoming assessments. Check for deferred maintenance.
- Know the flood zone and the elevation of your home. This can affect your insurance rates.
- Look at the ROI
- Get pre-approved
This is a short synopsis. As your Realtor I can provide much more insight and information to tailor your needs and match your criteria.
Contact me and let’s get started. ….Because Life is Better at the Beach.