[upme_private]Owning a vacation home can be a great way to add to your investment portfolio and, at the same time, own an asset you can enjoy. If you aren’t careful, a vacation home can also be quite a strain on your finances. Before you find yourself too burdened by additional expenses, read our suggestions on how to save money on your cabin.
With these easy tips, you will be well on your way to making your vacation home a worthwhile investment.
1. Rent Through an Efficient Property Management Company
The first step to saving money on your vacation rental is to make sure you list your property with a property management company who can help you increase your revenue. The vacation rental business is in a constant state of change. If your property management company isn’t using the latest technology, modifying its marketing to take advantage of the latest trends and staying involved with industry leaders, you might be leaving money on the table.
At Stony Brook Cabins, we operate using the latest software available from the strongest providers in the industry. We work closely with many of the largest online channel partners along with local professional marketers to provide maximum exposure for your property. Though we can’t dive into all of our marketing efforts, we are as transparent as possible with all of our owners, providing them peace of mind that they are in good hands and maximizing the potential of their vacation rental property. If you ever have any questions about how we’re marketing your rental, just ask! We are happy to discuss it with you.
2. Keep Your Property Fresh and Stay Up To Date on Preventive Maintenance
It is amazing what a little bit of preventive maintenance can do in terms of you saving or making money on your vacation rental. With regular maintenance, you will be able to avoid many major problems down the road and help keep up your cabin’s appeal to guests.
Annual servicing of your HVAC, energy efficient appliances, energy efficient light bulbs, periodic deep cleaning of the lines in your hot tub or jetted tub, clean gutters and debris removal from roofs are all items that indicate you care about the appearance of your property. Guests are not nearly as concerned about the age of your cabin as they are about whether or not it is up to date, has been freshly painted or stained both inside & out, has new tvs throughout and newer looking furniture. They want at least as good as they have at home but preferably better.
At Stony Brook Cabins, one of our top priorities is keeping our cabins in excellent condition – clean, neat and well cared for. In so doing we achieve high numbers of repeat guests and guest referrals helping to ensure your calendar is as full as possible.
3. Take Advantage of the Tax Benefit
And, of course, as you know there is the tax benefit in addition to creating income and owning a vacation home of your own.
The tax benefit applies to vacation home owners who occupy the cabin less than 10% of the total number of days rented, or less than 14 days a year, whichever is lower. If you qualify, you will be able to deduct many costs associated with owning and renting out your cabin.
Examples of these costs include:
- Insurance & property taxes
- Repairs, upkeep & depreciation
- New furnishings and appliances
- Mortgage interest
- Legal & other professional fees
- Property management fees
Of course you’ll have to pay taxes on the rental income but the expenses will reduce your overall income tax liability for the year.
Although taking advantage of the tax benefit is not an immediate way to save money on your vacation home, the savings add up over time. Lowering your overall tax liability may very well have a significant impact on your wallet come next April. So save those receipts. Every single one of them. And trust Stony Brook to keep very accurate accounting records on your behalf.
For more information on how to take advantage of the tax deduction on your vacation home, please visit the Internal Revenue Services’s website at https://www.irs.gov/. You should always consult with your own tax advisor before making any important tax decisions.
We know we can help you save money! Our goal is to make sure our owners are profitable and to help them lower expenses. We’d love to talk to you about how we are the best choice for managing your rental property. Give us a call and talk to Pam to get the best information about our property management program.[/upme_private]