What is the best time to purchase a short term rental? Orange Beach and Gulf Shores have a large number of vacation rentals along the coast, which can be a tremendous investment. Some investors are looking to buy simply to reap income while their property gains equity. Other families have been dreaming of owning a 2nd home for years, and have learned one of the best secrets of Vacation Homes, that they can help pay for themselves, which can allow for a larger and more elaborate purchase for their family to enjoy.
Knowing what time of year to purchase a property that you might rent out is beneficial to keep in mind. This can make a difference how much you are paying out of pocket the first year into the ownership of your new property. To be clear, any time of the year can work fine to purchase a rental property, especially if you are a cash buyer, or have good bit of flexibility with your income. And if you find what you are looking for and you are able to move forward, anytime of the year can work just fine.But ideally, if you are able to close on the property and have everything set in place with a good rental management company before the peak season begins, then you will be able to reap the additional financial income of the peak season the first year, instead of having the leaner months going into that first year.
A detail to keep in mind with a Vacation Rental investment, is that short term rental revenue is usually more inconsistent than a long term rental. Usually a LONG term rental may bring in $2000, $3000, $4000 a month (depending on size and area) pretty consistently. But then a SHORT term rental may bring in $15,000 or $40,000+ a month during PEAK season, but then it may only bring in $5,000 or $3,000 (or even less) a month during the off season. So if you are able to close before that peak season, you would be able to have that rental revenue from the peak season going into the first year.
So, while anytime of the year is a great time to purchase a short term rental and I truly believe they are a great way to build your rental portfolio and increase your net worth, all while giving your family a consistently fun place to vacation. Just for financial reasons, closing before peak season often works to your benefit.