How To Get In On The Luxury Rental Market
Luxury vacation rentals are all the rage right now, and as such, owning a luxury investment property has never been more lucrative. You don’t have to be a billionaire to meet the demand for custom rentals and turn a profit; you can just as easily add to your investment portfolio by purchasing a secondary home and renting it when it’s unoccupied. Our guide to the luxury rental market will help you get on your way.
Location, Location, Location
While the adage holds true for all real estate purchases, it’s especially important in the rental market. Before investing in a luxury home that you plan to rent out to vacationers, consider the following.
- Proximity to annual or semi-annual events. The Kentucky Derby might seem like an obvious choice, for example, but don’t discount smaller niche markets like music festivals, art shows and, sporting events.
- If your luxury home is near a world-renowned golf course, play up the features and characteristics that would appeal to the avid golfer. Invite them to kick up their heels in your heated spa or unwind after a hot summer day with a bottle of wine in your luxurious sitting room.
- Expensive bustling cities like Miami and San Diego are a given for high year-round demand; however, small-towns and private neighborhoods are even more appealing to vacationers who seek a more relaxed, intimate vibe.
- Homes at The Residences at The Ritz-Carlton, Dove Mountain make great luxury rentals for East Coasters who want to escape cold weather and overcrowded city blocks. Winter vacation homes in Arizona book quickly, so be prepared to market your property around its best seasons.
The Devil is in the Details
Assuming your beautiful home is worthy of a luxury title is a common mistake when trying to break into the coveted rental space. Be sure you know what your renters want. Peruse local resort listings and customize your home based on similar amenities. When all else fails, read reviews to learn what vacationers loved (and hated) about their last upscale rental experience. To be categorized as a luxury property, your vacation rental will typically include the following features—the more grandiose, the better.
- Exquisite master suite with walk in closets and a spa-like bathroom with heated floors, heated dual head showers, a soaking tub, separate vanity—maybe even a bidet.
- Top of the line fitness room and/or sport-related spaces such as an outdoor batting cage, basketball court, or lap pool.
- Gourmet kitchen with granite countertops, the latest and greatest appliances, dual ovens, and double adjacent dining rooms. Islands will typically be equipped with added storage space and an extra sink.
- Privacy is a must. Don’t assume that because you are renting to vacationers, they will spend little time inside the home. Many people choose to rent a luxury home for complete seclusion and relaxation. Highlight your home’s security features while presenting it as the ultimate getaway in and of itself.
- Exterior design is as equally important as the interior customizations. Most luxury rentals include a custom pool with beautiful water features and enticing extras like a tanning ledge or whirlpool. When the outdoor kitchen and dining area look like they belong indoors, you know you’re in a luxury home.
With an ample number of distinct characteristics, your luxury vacation rental can stand out above the rest.
If you’re interested in learning more about our custom homes and estate-sized homesites at The Residences at The Ritz-Carlton, Dove Mountain, contact us today.