4 Ways to Assess a Return on a Big Bear Vacation Investment Property
1. Hire a Big Bear Real Estate professional who can properly analyze a revenue return on a property.
You need an agent who knows her stuff about how a Big Bear vacation rental investment property will perform. If your agent is simply agreeing with everything you say you want in a revenue return on your investment, that is a huge red flag. Identifying, creating, and maintaining a healthy return on your Big Bear vacation rental investment property is a process. Leverage your local expert and gain the confidence to make the right investment decisions.
2. Don’t take a rental return history at face value.
Whatever the numbers show on a rental history, it’s important to look deeper at the reasons behind the return. Revenue return can be impacted in both positive and negative ways, depending on several factors. Low numbers do not always equal low return potential. Look at when and how often an owner has used his cabin, whether or not the owner has made changes and improvements to the cabin as recommended by their vacation rental management company, and whether or not the owner maintained an inviting atmosphere for guests. These are all areas that can be tweaked to increase bookings and increase rental income.
3. If it ain’t broke, don’t fix it.
If you are looking at how a property performs with a specific company, do not expect that the numbers will translate if you change companies or management models. Not all rental companies are equal and not every property management model is a good fit for every rental owner. Changing management companies or deciding to go it alone can have adverse effects on your return. Remember that an established positive rental history has value.
4. Generate a return legally.
If you have found a property that appears to have an exceptionally good revenue return, make sure you ask if the property is registered with the city or county as a vacation rental property. If the property is not registered with the proper governing body, it is operating illegally. Being registered means that code compliance must be followed, and taxes and fees must be paid. It is a risky starting point for an investor to take on a rental that is not registered. Your agent should be able to inform you of this. Do not endeavor to generate an illegal revenue return with your investment property. People who do are exploiting the industry and setting themselves up for failure.
Ideally, your agent is a comprehensive expert in these areas. There are many ways you can drive your Big Bear vacation investment property into one with a healthy and even a high revenue return. Each investor is different and has different goals. Your agent should be able to help you identify what will work best for you and your investment strategy.