Not very long ago, only a wealthy few could afford to buy property strictly for vacation purposes. However, as people around the world have become more affluent—particularly in North America—many have found themselves able to purchase homes solely for recreational use. These homes are not bought with the intention of turning a profit; instead, they serve as getaway properties for the enjoyment of the homeowner and their family. Often, they are located near popular vacation destinations such as beaches or ski resorts.
There are several reasons why owning a vacation home has become an option for more and more people in North America:
Wealth is growing not just in North America but around the globe. In countries such as Germany and Japan, where real estate is both rare and expensive, many affluent individuals have discovered that taking a vacation overseas—particularly in North America—is often easier and more affordable than vacationing at home. We’ll explore how this benefits North American property owners shortly.
As wages and salaries have risen across the continent, so too has the amount of disposable income. More disposable income translates to more opportunities for recreation, and many families are finding that owning a second home simplifies vacation planning by eliminating the need to search for accommodations.
In the long run, owning a vacation home can actually reduce vacation costs. A second home provides all the comforts of your primary residence in a new setting. Having a kitchen, for example, can lead to significant savings by avoiding the expense of dining out for every meal.
Savvy investors have also realized that vacation homes can serve a dual purpose—as both personal retreats and rental properties—provided they are willing to handle the work involved.
Turning a Getaway into an Investment
While some people prefer to keep their vacation homes available year-round for spontaneous use, an increasing number are choosing to offset their costs by treating their properties as rental investments.
Traditionally, rental properties are leased to tenants on a monthly basis throughout the year. With vacation homes, however, owners can rent out their property for shorter periods—ranging from a few nights to several months—making it possible for the home to pay for itself over time.
Options for Renting Out Vacation Homes
As previously mentioned, global wealth is on the rise. Affluent travelers from countries like Japan and Germany often find North America an attractive vacation destination. Property owners in popular resort areas—near beaches, ski slopes, or golf courses—can often book their homes throughout the season. If your vacation home is in a location with year-round appeal, you may even turn a profit in addition to covering your expenses.
One of the keys to ensuring you never pay the mortgage on your vacation home from your personal income is effective advertising. Of course, the property’s location is its best selling point. Don’t expect a remote cabin by a secluded lake—no matter how beautiful—to rent easily. While such a spot may be perfect for personal use, it may not generate the demand needed for rental success. Those who prioritize seclusion may also find that these properties are more affordable than those in bustling tourist areas.
Owners with properties in high-demand areas can either rely on the location to attract renters or take an active role in marketing. Managing rentals also involves time-consuming tasks like cleaning, booking, and handling payments. Many owners streamline the process by hiring a vacation home rental company. These companies operate in all major resort areas and handle the logistics of renting your property. The downside, of course, is that they charge fees and may limit the number of weeks the owner can personally use the home.
As with any rental arrangement, vacation homeowners must plan their own getaways in advance if they intend to rent their home out regularly. Some owners can afford to maintain a second home without relying on rental income, which gives them full flexibility in using the property. However, even those who don’t rent should consider factors such as maintenance and security during off-use periods. Friendly neighbors can help keep an eye on the property, or owners might hire security services and arrange for landscaping to ensure the home remains in good condition year-round.
