Knoxville is a vacation destination for a multitude of reasons. In the fall, Tennessee football attracts fans from all over the country and a wide variety of outdoor recreation activities brings thousands of visitors throughout the year.
For these visitors, peer-to-peer vacation rentals are a unique, and sometimes more affordable, alternative to hotels. You are likely familiar with the idea if you have heard of or used sites like Airbnb, VRBO and HomeAway. If you are thinking about getting involved in the vacation rental business as a property owner, here are three challenges worth your consideration.
Managing Remote Properties
Some landlords live near their rental properties, but that is not always the case. If you have a rental house, apartment or condo in a location more than an hour or two from where you live, you might struggle to create a maintenance/management routine. You might also find that many tasks cannot be handled from afar, creating the need to have a trusted, local partner to take care of many day-to-day tasks.
Taking Care of Administrative Responsibilities
Owning a vacation rental comes with a long list of responsibilities. Creating leases, processing guest applications and collecting rent are only a few of the tasks that you have to juggle. While this may seem manageable, it can quickly become overwhelming as you try to stay organized. And as you invest in more properties, management can quickly turn into a full-time job.
Legal and Regulatory Issues
In some cities, there are city zoning laws that restrict your ability to host paying guests for a short period of time. In many cases you have to register your property, get a permit or obtain a specific license before listing your property. In some cases, housing a paying guest for a limited stay might be prohibited altogether. As the owner of a vacation home, you are legally responsible for knowing, understanding and abiding by local ordinances regarding peer-to peer-renting. Violations can be costly.
Given the challenges of managing any vacation property, especially a peer-to-per rental, consider hiring a property manager that can serve as a trusted advisor and expert partner.
At Woody Creek Realty, our local investment and property management team can help you reap the rewards of a rental without experiencing the stress of managing properties, administrative responsibilities and legal issues. We are proud to say that Woody Creek rental properties have a 96% occupancy rate. We work with our clients to take care of the day-to-day interactions with tenants and also handle routine maintenance.
If you are looking to explore rental opportunities, contact our team today and let us help you find the right solution for your rental needs.