Real estate investing comes in many forms. Apart from the classic rental, investors can also choose to rent a property for only a few times of the year. This is the seasonal real estate rental. To buy an apartment for a seasonal rental investment, here are some tips to know.
Define your goal
Renting a seasonal apartment can be particularly profitable, up to twice as much as a classic rental if you choose a good location. But for your rental investment to be truly profitable, it is important that you take the time to think carefully about your project, the goal you want to achieve. Ask yourself first why you want to invest in seasonal rental real estate. Is it for owning a second home or just investing for the money? In the first case, your objective in buying an apartment is certainly to rent it for a short time, but especially to take care of it yourself from time to time. In this case, choose a location that makes you happiest: by the sea, in the mountains, etc. If on the contrary you seek to make profitable your investment, then this one must really be reasoned and weighed. Not only must your investment be self-financing, but it must also generate a really good cash flow. Look for an apartment with a gross profitability of at least 10%.
Choose a good location
The golden rule for a successful rental investment is three words: location, location and location. We all know this maxim very well. It applies to both conventional and seasonal rental. Real estate investors must respect this rule. The reason is that a good location ensures the valuation of your apartment over the long term. In addition to allowing you to easily find a tenant, this also protects you from a possible downturn in the real estate market. If one day you have to resell it, you are assured that its value will not be diminished and that the transaction will not drag.
Check the rental demand
Buying an apartment is one thing. To rent it in the best conditions is another. Before signing the authentic deed at the notary, each investor must be well informed if the rental demand exists for him to rent, but especially to find a steady stream of tenants. Do not buy in a disaster area under the pretext that the price is interesting. You may regret bitterly your decision later when there are not enough requests from potential tenants.