Do you have a second home you’re not using often, or currently have a house on the market that’s just not selling? If so, turning your former living space into a vacation home is a great option! It’s an excellent way to make some money with your other home and offer new families the chance to rent it while traveling.

But is there anything you should do before renting? What style and legal aspects are there to consider? Here are eight tips to think about before turning your property into a vacation rental.

1. Local Demand

Once you start thinking about transforming your home into a vacation getaway, check out Airbnb, Vrbo, and other rental services. Is there a lot of competition in your area? If there is, can you offer something more attractive than the other rentals? Additionally, look at the appearances of these houses and see what kinds of updates you’ll have to make.

2. Legal Responsibilities

Once you start renting out your property, you become a landlord. There are some things to be aware of when this happens.

First, research your local or state government and see if rentals have any regulations. They most likely will, so you’ll need to follow those guidelines in order to remain within the requirements. Your homeowner’s association may also be interested in the status of your home, so check with them before making any preparations.

Also, it’s a good idea to purchase landlord insurance. While state laws don’t require it, it does a lot to protect you. A standard insurance plan covers:

Hail, fire, and wind damage
Injury
Loss of rental income
Personal property

You can also adjust your plan to include theft, vandalism, flooding, and repairs for building codes. Investing in solid insurance will help you run your vacation rental smoothly.

3. Necessary Licenses and Permit

The American Apartment Owners Association nationally requires two licenses for you to rent your home to others legally.

Certificate of Occupancy

This license certifies your home meets the requirements of building and zoning laws. It also declares your property fit to house residents.

Housing Business License

What kind of license you receive depends on what you are trying to rent out. Most states require housing business licenses for units to operate as a business, so check with your city for which kind to apply for.

Along with a certificate of occupancy, you will also need to file a building permit. Each state has different requirements to rent out your property, as well as fair housing laws. Check with local and state governments to ensure you have all the proper paperwork before renting.

4. Repairs

If you’re lucky, your local regulatory authority did not find any changes you need to make to suit renters. But they’re likely going to require some repairs, or you might decide to make some anyway.

Talk to the authority checking out your home about any repairs you’d like to make so they can ensure it will be up to code. You should probably replace anything outdated or that isn’t functioning correctly. A fresh coat of paint is a good place to start.

5. Upgrades

Find ways to make your vacation rental one-of-a-kind. Unique features will encourage more people to choose your home. So, as you’re looking at the other properties around you, think about features to add that will make yours memorable. It could be something simple like freshening up the pillows and blankets or as big as adding a new room. However, stay aware of how much these upgrades will affect the rent.

6. Personal Items

You should take any personal things like family photos and important belongings out of the property. You want to create the image that the renters are living here for as long as they’re staying.

Leaving sentimental items might give the impression you’re still living there, which can be uncomfortable. It also helps you feel secure in knowing no one will take anything from the rental that’s precious to you. Whatever you’re worried about losing, you should remove.

7. What to Charge

Once you’re open for business, you’ll need to figure out how much you’ll charge for your rental. Whether you’re renting on a nightly or monthly basis, there’s a lot to consider when figuring out the rent. A high rent might mean more money for you but fewer leads, while a low rent won’t yield any profit. Some things to think about are:

Your mortgage obligation
Ongoing maintenance and repair costs
Layout and size
View and desirability

If you need help deciding, try looking at other vacation homes near you or ask for a realtor’s opinion. Setting the rent at a fair price will increase interest in your rental.

8. Rules

There might also be some rules you want to set for the property – but keep in mind that too many rules might be a deterrent. What would you want your tenant to know before they arrive? For example, maybe you’d like them to wash the sheets before they leave or maybe you want to emphasize a pet policy.

These are the kinds of things you should outline for your renters. Welcome books are great ways to display any rules your tenants may need for the best stay possible.

Transform Your Property Into a Vacation Rental

Converting your home into a vacation home for rent is a fantastic opportunity. Being aware of the legal requirements and things you can do to spruce up your property will help your process. If you’ve been thinking about turning your home into a vacation spot, utilize these tips to get started!