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Have you ever wanted to own an investment or vacation rental property? A place that could become a long-term retirement haven for you and your family?
Katy Bertodatto and Mark Keely are co-founders of Golden Swan Management, a property management and real estate development company located in Traverse City, Michigan. Golden Swan properties extend throughout the northwest Michigan region, with a variety of rentals—intown condos, waterfront, rural escapes—available in every season.
Probably the most critical aspect of considering an investment or vacation property is asking, “does it align with my family’s purpose?” If this consideration is because you think it may be cool or have seen one too many HGTV shows that make it look easy, then you need to readdress your WHY!
Most people interested in owning a second home often do not know where to begin. Katy and Mark guide us through the critical factors you must consider and some critically overlooked considerations that people can miss when investigating an investment or vacation property.
Here are a few critical steps you should consider when investing in a vacation property:
- Get a local realtor. Even though the internet makes it easy to search and find potential properties, having someone on the ground who knows the area can be invaluable.
- Find a property management company such as Golden Swan. Katy and Mark provide additional details on finding a management company that will work with your needs, which can help increase rental revenue and the overall value of your property.
- Develop a list of criteria that you are looking for. However, don’t be short-minded and think long-term about how your family needs can and will change over time.
- If you are considering a condo purchase, understand what your homeowner’s association is like and are they supportive of rentals, both long and short-term
A few of the overlooked considerations people miss include the following:
- Don’t try to manage it yourself. While you may want to save money, it could cost you more in revenue and some sleepless nights by going it alone.
- Learn about local zoning laws and what properties are allowed for short and long-term rentals. Here again, working with a property management company as your partner can help avoid a financial catastrophe.
- Beware of market saturation. Try to get a feel for the rental capacity of the market you want to buy into. If new properties are coming to market now and in the future, it will impact rental income and property values.
Please enjoy my conversation with Katy Bertodatto and Mark Keely.