There are many reasons why you might choose to rent your log cabin. Maybe you are not using it that often so renting it can be a great way to make some extra money.
Perhaps you need some extra cash to offset the costs of owning one, or maybe money is simply a bit too tight at the moment.
Whatever your reasons might be, you should know that there are some tricks and twists that you should be familiar with before you take on this enterprise.
Here are a few words of advice to make the whole process go as smoothly as possible.
Things to consider first
Before you rent your residential log cabin, there are a few things you need to consider:
- Learn about your local tax regulations and tax implications before renting.
- Yes, it is possible to get insurance for your log cabin. It would be wise to do so if you plan on renting it. Check with your homeowner’s insurance company if you are not sure how the process works.
- Local laws and requirements. Are you familiar with the local requirements? It is vital to know municipal regulations or homeowners’ association rules before renting your log house, especially if you plan to alter the property.
- If you plan to rent your log cabin, it would be wise to hire a professional to ensure that it meets local health and safety regulations. You should also equip it with smoke detectors, emergency lights, first aid kits, and fire extinguishers.
- Furniture and accessories. The better your log cabin is furnished, the less hassle you’ll be dealing with when it comes to requests from tenants. Not to mention the fact that a well-furnished log cabin means you can ask for a higher rent. Ensure you have comfortable outdoor and indoor seats, a grill, sufficient kitchenware, towels, pillows, and extra bedding.
- Some people like log cabins because they are quiet and secluded, but that doesn’t mean you should let your tenants die of boredom. If you don’t have Internet access there, make sure to offer other sources of fun and entertainment such as books, board games, or satellite TV.
Decide how involved you want to be
There are two ways you can go about renting your log cabin: you can either use the services of a property management company, or you can choose to leave out the middleman and do all the legwork yourself.
Property management company
You should select this first option if you do not have the time or the interest to clean and maintain the cabin between guests regularly.
A property management company will handle all the necessary procedures to keep the place nice and tidy while it is being occupied.
They will also deal with guest complaints and requests, respond to inquiries, take care of booking, and handle taxes.
Keep in mind that the peace of mind doesn’t come for free. Property management companies charge 10% to 50% commissions, which is pretty steep.
Rent by owner
If you have a bit of DIY enthusiasm or simply want to keep all things under your control, you should consider renting your cabin by yourself.
Sure, it takes a lot of confidence and some extra time, but you can make more money by taking care of everything yourself.
Choose this option if you live close by and want complete control over the rented property. Rent by owner is also a better option if you want to avoid paying commission to a property management company.
Extra tips for renting by owner
If you want to make the most of renting your cabin, choose a unique approach and a particular target group.
For instance, you could focus on fitness and wellness and turn your property into a wellness retreat, or you could primarily target families with children, couples, or pet owners. Your imagination is the limit.
Once you have this sorted out, you can start marketing your cabin, either by yourself or by handling this portion of the work to an agency. Either way, keep in mind your target audience and whom you want to appeal to.
Renting a log cabin can be worth it, even though it can be a bit challenging initially. Once you take care of all the legal details and rules and regulations, it is up to you to decide how involved you want to get with the process as a whole.
Choosing to rent the cabin by yourself comes with more responsibilities, but it might suit you if you want to be entirely in charge of your property and what happens with it. On the other hand, if you don’t care too much about this aspect, consider hiring a property management company. Their services cost a pretty penny, but they will take care of taxes and other legal matters for you.
Kevin has gone through an extensive home renovation with his son, which he has both
thoroughly enjoyed, and dreaded every morning. He is now the proud owner of half his dream house (the other half has been waiting for spring). You can read more of Kevin’s work on PlainHelp.
- Top 10 Expenses to Consider as a Real Estate Investor
- Learn About Costs When Buying a Condo House
- Great Britain Analytical Reference on the Real Estate Valuation System
- 8 Reasons That Will Make You Invest In The Bahamas
- What I Wish I Knew Before Buying Rental Property
- How is the Recent Pandemic Affecting Real Estate Market Prices in Canada?