Purchasing the "Right" Condo for a Vacation Rental Property

Previously, we looked at what to look for when purchasing a vacation rental home at the Lake of the Ozarks and this month we will do the same for condos.  As with homes, the size, location and amenities will determine how many rental nights and what kind of income you can expect.

Price

As a word of caution I would recommend that if you cannot afford to purchase the condo without counting on the rental income, then you should not purchase the condo.  On the other hand if you can afford the payments and are just looking to off-set your expenses, then you will be much more satisfied with your purchase and rental experience.

With that said, you should not purchase based on price alone.  Finding a great deal on a condo that won’t rent is not wise, while spending a little more on a condo that will rent well would make more sense.

Location 

There are a few condo complexes that do not allow nightly rentals, check with your agent (or professional rental manager) before purchasing.  The Osage Beach and Horseshoe Bend areas, between the 7 and 22 mile markers, are still two of the most popular locations for rental condos at the Lake of the Ozarks.  But other areas, depending on amenities, do well also. 

Amenities

Here are some things to look for in a condo at the Lake of the Ozarks: the fewest steps to the door, elevators, a big pool, multiple or indoor pools, easy access to docks, large boat slip, great view, large screened deck, playground area, on site boat launch/trailer parking and ample parking for the complex. Few complexes offer all of these amenities, so look for those that offer the most or best features.

Size 

Does size matter?  A one bedroom condo should cost less and might rent for more nights, but due to pricing, the income level will be lower vs. a three bedroom condo that only rents for half as many nights.  Income will vary by location and unit, but a typical one bedroom could see a potential gross of $3,000 to $7,500 per year, with a three bedroom having a potential gross of $6,000 to $10,000 per year.

Management 

Finally it is essential to find a property manager at the Lake of the Ozarks that has multiple rentals in your complex.  Unlike a large home that can be rented by multiple families, generally a group is going to need multiple condos.  If yours is the only one at the complex with your rental company, you will potentially miss out on 25% to 35% of all rentals.  If you don’t have a boat slip you will miss out on another 25% of renters that either bring or rent a boat.

Russell Burdette is the owner/broker of Your Lake Vacation, a professional vacation rental management company at the Lake of the Ozarks since 1986.  Russell has served as the vice-chairman of the Tri-County Lodging Association, is past president of the Lake of the Ozarks Vacation Rental Association, sits on the board of directors for the Lake of the Ozarks Golf Council and is currently president of the Lake Business Builders BNI chapter.

For more information please call us toll free at 1-877-284-0267!!

YourLakeVacation.com
4571 Osage Beach Pkwy, Suite A
Osage Beach, MO 65065
Local - 573-365-3367
Fax - 573-365-5076  

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