The rental market is certainly booming. The housing market
is only going up and up. With that, there has been a growing trend in rental property investing over the last decade.
It would be safe to say that the home rental market has exploded. Some are even saying that investing in a rental property is just as valuable—if not more so—than stocks.
One of the biggest drivers of this is that more and more people want cozy homestays on their holiday rather than staying at expensive chain hotels. There is a reason that Airbnb and Vrbo are absolutely crushing it right now.
Travelers want to have the comforts of home—from a quiet location to a kitchen to make delicious home-cooked meals. Plus, vacation rentals offer the chance to truly stay local and discover places that mainstream tourists do not go. Why stay in a boxed-up hotel room when you can stay in a beautiful countryside cottage?
The shift in this tourism mindset has set the pace for why investing in vacation rentals is such a great idea. People paying attention to this fantastic investment opportunity have realized that they can purchase a home or apartment solely for renting out to short-term vacationers and make a ton of money as a result.
Here are all the reasons why you, too, should look at investing in vacation rentals—and why they are as good as stocks.
The Home Share Market Is Booming
Did you know that vacation rentals are making over 150% more in revenue than traditional long-term rental properties that would go to tenants over holidayers? In fact, why would you want the tedious tasks of being a landlord when you can simply be a holiday host and make more money with less stress.
All it takes is investing in a bit of décor and appliances, making some Instagram-worthy spots, and watching the demand to stay here rise. It doesn’t take much to be able to transform a holiday property into a luxury escape.
Get a Passive Income
Much like stocks, once the setup work is finished, all you have to do is sit back, relax and enjoy a passive income.
The home rental market is so great to invest in because they operate precisely like stocks. You can simply check in and go through the motions while you watch the value of your investment rise. Plus, just like a stock portfolio manager, you can also get a vacation property manager to look after the logistics of your home investment too.
Do a Little, Get a Lot
The value of your vacation property is going to go up long-term. It is a marathon, not a sprint. This is the same philosophy when it comes to stocks. You can capitalize on the housing market’s success by simply investing in it.
And just like stocks, timing is everything and the real key to success. If you buy at the right time, you will be equally rewarded long-term. You do not even need to interact with the guests at your house or know the password to the internet to get a big return on this investment.
As the owner of the holiday property, you will be able to simply make money for each stay and be able to put it directly into the mortgage. And unlike long-term rental properties, you will be able to charge a lot more for a three-day stay than you would for a month-to-month stay.
Invest Just Like Stocks
Even more so, the evolution of technology has made investing in rental properties easier than ever. Companies like Here have created a similar marketplace to investing in shares, but for rental properties instead! Think of it as a combination between AirBNB and Robinhood!
All you have to do is go through the selections of holiday rental properties and select the ones you’d like to invest in. You can easily access all the information you need to understand the property valuations, the expected return on investment, and any other criteria you’d want to have to measure whether or not you want to invest.
When you discover the ones that excite you the most and want to put your money into, you can become a shareholder of that property. This means that you will receive cash payments once a quarter for the net total of the rental income. You do not even have to deal with property management or tourists!
Conclusion
With investing in vacation rentals as easy as stocks, why wouldn’t you add this to your investment portfolio?
