Home vs. Condo
For our Lake of the Ozarks vacation rental company, as a general rule, homes tend to rent a little better than condos. Over the last 3 years, our homes have averaged 43 paid nights per home and our condos have averaged 31 paid nights per condo. Please realize that when owners use their home or condo, or let friends use it during peak season, they give up potential rental nights. So if you think those numbers might be a little low, we don't put any restrictions on how our owners use their properties. And as a rule, the bigger homes tend to rent more than the smaller homes.
Number of Bedrooms
So far this year, our five bedroom and larger homes are averaging 37 nights booked for the rental season and just over $20,000 in rentals vs. our four bedroom and under homes that are averaging 21 nights booked so far and just over $5,000 in rentals. The gap won't be that big at the end of the season as the larger homes tend to book earlier due to the fact that there are only so many available here at the Lake. But at this point, they are averaging 76% more nights booked and 300% more in gross rental income.
Your Budget
Here is where the budget comes into play. What can you really afford? You shouldn't plan on the income from your rental property making your mortgage payments, paying your monthly bills, insurance or taxes. Someone might tell you otherwise and there are exceptions to every rule....but with more than 10 years in the business, I can assure you that they are very few and far between. If you can afford the home without relying on income, then you will have a great experience, mo matter how much income you receive from the property. However, if you are depending on the income and it falls short of your needs, you will be very disappointed.
Personal Needs
You will also want to look at your own personal needs. Do you really need a home that large? Some owners will purchase the larger home for the rentals and then just downsize when the kids leave home, retire or just no-longer need a large home. While renting won't pay all the bills, it could definitely put a big dent in the mortgage and other expenses.
Russell Burdette is the owner of Your Lake Vacation, the Lake's leading professional vacation rental management company. Serving the Lake of the Ozarks since 1986. If you would like a free vacation rental market analysis or more info on renting your home or condo at the Lake of the Ozarks as a vacation rental, give us a call at 573-365-3367.
For more information please call us toll free at 1-877-284-0267!!
4571 Osage Beach Pkwy, Suite A
Osage Beach, MO 65065
Local - 573-365-3367
Fax - 573-365-5076
Osage Beach, MO 65065
Local - 573-365-3367
Fax - 573-365-5076
No comments:
Post a Comment