Big Bear Real Estate, Big Bear Lake, CA

---

Keller Williams - Big Bear Real Estate

For All of Your Big Bear Lake Real Estate
Buying, Selling & Management needs
Big Bear Real Estate, Big Bear Lake, CA

Big Bear Real Estate - Investing with a vacation rental

Helping Turn The Dream of Second Home Ownership Into Reality.

Investing in a vacation rental can be a very rewarding experience. You can own an asset that you get to use and enjoy – Big Bear resort real estate – while that same asset can help pay for itself and appreciate in value. Big Bear Vacation rentals, also called resort rentals, are single-family homes, cabins, and condos that are offered for rent on a short-term basis. This distinctive type of vacation accommodation has many advantages to the consumer and property owner, and vacation rental use is strong compared to all sectors of the travel industry.

Big Bear Vacation rentals offer large living spaces often with multiple bedrooms, kitchens, and unique floor plans and décor. Many include their own private outside areas such as patios, decks, and yards. Also, because of the recent tumultuous events throughout the world and in the United States, there is a heightened sense of security in staying at a single-family home or small lodge when compared with the high profile of large hotels and resorts. In addition, many people are reluctant to travel far for vacations. Accordingly, resort areas in the contiguous United States, especially drive-to areas like Big Bear Lake, are seeing higher demand for accommodations. These factors have caused an increase in demand for the unique amenities presented by vacation rentals – especially those located in resort areas, such as Big Bear, that are only a few hours driving time from major metropolitan areas.

Vacation rentals are usually just a second home owned by a private party and managed by a professional rental agency. Thus, Big Bear vacation rentals offer a convenient route to owning a second home. And second home ownership is on the rise.

According to the 2003 National Association of Realtors® (NAR) Profile of Home Buyers and Sellers, in the first quarter of 2003, 15 percent of homebuyers were either buying a second home, owned a second home or were buying a new primary residence and keeping their existing property as a second home. According to the 2002 NAR Profile of Second-Home Owners, nearly one-third of all these second-home owners use their properties as an investment or income-producing vehicle. NAR further declares that second homes have been outperforming the stock market recently. For example, in 2002 the median price of second homes had risen 26.8 percent in two years, and that is at a time when the stock market saw diminishing returns.

When buying a second home the most important thing is to buy the home because you really want to own and enjoy the property. Making your second home in Big Bear a vacation rental will help offset the costs of ownership – mortgage, taxes, maintenance, and other expenses – but it is unlikely your vacation rental will pay for itself entirely. And there are ways to improve the profitability of your investment. Location is the primary factor to consider when looking for a good potential vacation rental. The best vacation rentals are obviously located in areas where people want to vacation. Resort areas are the natural choice. Availability of many activities is important, and if there are activities associated with more than one season the potential number of rental days increases dramatically. An area that has skiing, hiking, biking, shopping, a lake or beach, and boating is a best bet. And as noted above, a location that is only a few hours drive from one or more major metropolitan areas is ideal.

The next most important factor is finding a good property manager for your Big Bear real estate investment. Finding a professional, experienced, and successful property management company is easy if you follow some simple guidelines.

First, look at what services the management company provides its guests. Do they provide housekeeping, or does the guest have to clean up after themselves (and if maid service is not provided, do you want to trust a guest to do a good job). Is guest check-in easy – does the management company have a nice office with convenient hours, or is a key left under the doormat. Are linens, soaps, and other amenities provided, or does the guest have to bring their own. Remember, the easier it is for a guest to enjoy their vacation, the more guests – and rental nights – your house will have.

Next, how does the management company get those guests. Marketing is what generates sales, so look at the type and quantity of the company’s marketing. Are they on the Internet, and is their website easily found with a simple search. Does the company advertise on television and radio. Do they use direct mail and print advertising. Do they have billboards or other outdoor ads aimed at the motorists of the drive-to market. All of these types of marketing are important when it comes to filling beds.

Remember, management fees (the percentage of the reservation that the management company keeps for its services) vary by area and company. And while the amount of the fee is a consideration, a higher fee doesn’t always mean less money to you. So focus on the estimates of how much money you will net, not on the amount of the fee itself. Often a company that charges a little more can afford to offer much more marketing and guests services, and will have higher occupancy rates.

Once you have found the location and the management company, its time to find your second home. Remember, make an informed buying decision, not an emotional one. Rely on the advice and counsel of your chosen professionals: your accountant, attorney, mortgage broker, and insurance agent. Find a real estate agent that knows the not only the sales market, but also the rental market. Ask your chosen management company for guidelines on what neighborhoods, property styles, and décors are the most popular with renters. Then use this information to find a house or cabin that you really want to own and enjoy – and you’ll be on your way to having a second home that can help pay for itself while it appreciates in value

---

       

Website design and Internet Marketng by Bangtag
©2004-2008 Big Bear Resorts, Inc.