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Pros and Cons of Vacation Rentals

Woman Enjoying Her Stay at a South Burlington Vacation RentalProcuring a South Burlington vacation home can be an enchanting idea. It could be your go-to vacation space, but at the same time be a house for rent to cover expenses for most of the year. But, anyone who has ever owned and rented out a vacation home will definitely tell you that things aren’t always what they seem. There are other details about owning vacation rentals that you should know. Before you decide on a vacation rental ownership of some sort, make sure to dive deep into all the important aspects.

Pro: Extra Income & Tax Breaks

A really good reward of owning a vacation rental is the extra income you get from renting it out. Depending on whether you choose to rent it out short-term (days or weeks at a time) or long-term (several months at a time), your property can come to a point where it will pay for itself.

Con: Another Mortgage Payment & Expenses

Of course, buying a vacation rental comes with a mortgage payment, insurance, property taxes, utilities, and other expenses. These details have to be taken into account when deciding on a vacation rental. Additionally, financing for an investment property can cost more since lenders often require a larger down payment and charge higher interest rates on second homes.

Pro: It’s Yours to Use

You are in charge of your vacation home, so you can do whatever you please. This is a great perk when you visit the location frequently. You won’t have to stay at a hotel! You can also use the property for business or personal events, meaning you also won’t have to pay to rent event space.

Con: Marketing and Screening Tenants

You can look for tenants to market your vacation home to if you have no plans to frequently occupy it. Marketing can be a time-consuming task, as is screening potential tenants. It’s quite difficult to manage when you intend to rent out for days or weeks at a time. It will be a big task to find tenants who will rent year-round since the turnovers are fast.

Pro: Building Your Retirement Fund

One great way to contribute growth to your retirement fund is to invest in rental real estate. Rental property owners often include their rental income or property sale into their retirement plans. Unlike the volatile stock market or savings account that offers little interest, real estate can provide you with both safety and growth that no other investment can provide.

Con: Property Management Takes Time

Owning a vacation rental may sound amazing, but it takes a lot of work to make it work. It will take years of property management before a payoff comes. What’s even more problematic is if you have to keep your property clean and maintained all by yourself, or if your vacation rental is far from your primary residence. There are a good many vacation rental owners who will testify to the challenges that come with preparing for each new tenant — something that is not frequently dealt with in long-term residential rentals.


If you own a vacation home, renting it out can really serve to benefit you. Just make sure to steer clear of the most common mistakes made by a lot of first-time investors. Better yet, hire a good property management company to help you avoid those mistakes! Would you like to learn more about smart approaches to managing vacation rental properties? Real Property Management Sterling has a top-notch team of South Burlington property managers to help you navigate the market as well as keep your vacation rental profitable. Contact us online or call at 802-861-6468 today!

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