Many people today who own a residential log cabin think about renting their property. These owners usually have different reasons for doing so, such as paying off their mortgage sooner. For others, renting their log cabin is just a way for them to earn extra money, especially when the cabin is not being used for a long time. Regardless of these reasons, the act of renting out your log cabin is an effective tool to help you in offsetting the costs of owning it. (check there residential log cabins)
The majority of log cabin owners tend to rent out their property because of the financial benefits that they can get from it. Taking the time to rent out the cabin for about seventeen weeks each year is good enough to cover the yearly mortgage costs including all other associated rental bills. Now if you are looking forward to making a bigger profit then you should make it a point to have your residential log cabin rented more often. But before you start to rent your cabin, it is highly recommended that you know the rental costs first. Allocate some of your time researching the existing rental rates within your area to make sure that the existing market can support your desired rental cost. You also need to be reminded that the cost isn‘t worth it if your expenses are not covered.
Important Things you Should Know First
The following are some important things that you need to know first before you start renting your residential log cabin:
* Do you have the proper insurance? If you are not certain about this then you should take the time to consult your homeowner’s insurance company.
* Are you aware of the local requirements imposed in your area? Before renting your log house it is important to have a thorough understanding about local requirements such as homeowners’ association rules and municipal regulations.
* Investigate and learn about tax implications
* Is your log cabin reliable enough when it comes to health and safety? Before renting your cabin be sure that it has the following health and safety equipment: fire extinguishers, flashlights or emergency lights, smoke detectors, first aid kits, etc.
* Does your log cabin have what it takes to be more appealing to the eyes of the renters? This is important because it is something that spells out your success in renting your property. Thus, it is necessary to put up or install amenities like Wi-Fi, board games, video games, a hot tub, cable or satellite TV, DVD/Blu-ray player, fireplace, sporting equipment and others.
* A good cabin is commonly the one which is outfitted with durable furniture. It also offers comfortable seats, sufficient kitchenware, outdoor seats, picnic grills, extra bedding, pillows and towels, etc.
The Desired Level of Involvement
There are actually two levels in which you can get yourself involved in your residential log cabin rental service: a Property Management Company and Rent by Owner. Hiring a property management company is highly advised to you when you do not have the time or the interest to clean and maintain the cabin between guests on a regular basis. The company will assign a property manager who will take good care of all the necessary procedures to help maintain the cabin while it is being occupied. The tasks of a property manager often include housekeeping, maintenance, advertising, renter screening, responding to inquiries, booking, receiving and handling guest requests and complaints, receiving, collecting and remitting sales tax for a cost. Generally, commissions usually range from ten to fifty percent.
On the other hand, Rent by Owner is something that may appeal to you especially when DIY blood runs through your system. This is also an ideal way of involving yourself in the rented log cabin of yours especially when you live close by and you want complete control over the rented property. Rent by owner is also good for you if you want to avoid paying commission to a property management company.
Is it a nice and quiet family or a rowdy group of stag weekenders? Which of these two sets of vacationers would you accept renting your log cabin? To help you decide, it would be a good idea to run a criminal background and a credit report. Checking your prospective guests is an effective way to protect the entirety of your property.
Additional Tips for a Successful Log Cabin Rental
Apart from the ones mentioned above, there are also other important tips and pointers that you need to know first in order to realize a successful and profitable residential log cabin rental business.
* Evaluate & understand potential risks. Be sure to outline and cover all your potential risks. Owners of small businesses take the time to understand possible causes of profit and loss and finding practical solutions to cover each.
* Invest in security. Ensuring the safety of your customers is critical since you are in the hospitality industry. Investing in security systems will give your guests the assurance that their stay in your log cabin is enjoyable, safe and secure.
* Think about the needs of your consumers before they do. Think like you are a customer so that it will be much easier for you to determine what most customers want or need. Think of things that you enjoy during an out of town stay and make these things available for your guests’ enjoyment and satisfaction.
* Listen to customer reviews. To be able to continuously meet the needs of your customers, it is important to listen to their reviews after their stay. Smart business owners do not listen to positive reviews only but negative feedback as well. With such reviews, you will know how to improve and maintain your log cabin rental business thus, making every future guest satisfied.
* Keep up on market trends. Stay competitive all the time as this is an integral part of an effective management of your rental business. By watching and observing current market trends, you will have the assurance of making plenty of room for improvement in your log cabin rental business.
If you are still a bit new to residential log cabin rental, have no fear. Follow the tips above as they are valuable pieces of advice that will make you successful in your endeavour along the way.