How do I Invest in Beach Rentals?

Build your nest egg with a beach rental.
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If you want to combine your love of money with your appreciation for a good tan, consider exploring the potentially lucrative world of beach rentals. By investing in property on some of the country's most coveted stretches of beach landscape, you can not only earn money on both rental and the ultimate sale of the property, but also gain a cozy vacation spot for you and your new spouse. While investments of this type are quite expensive, if you have the financial ability to handle the costs, you can see a healthy return on your initial investment capital.

Step 1

Search for a good deal before committing. When you are on the hunt for your perfect beach property, don't let your love of the sun lead you to buy a property that is not properly priced. If you want to make a profit off of your property through rentals and sale, you must ensure that your mortgage payment on this purchased property is within a reasonable range. Ensure that the property is priced low enough that its value will increase in several years. To do this, research other properties on the same stretch of beach and determine how the potential property compares. Use your knowledge of comparable prices to acquire your property at a reasonable price.

Step 2

Pick a desirable property. When you are buying an investment property, you must not only consider your property desires, but also take into consideration what will prove attractive to potential renters. By selecting a home with a pool, picking a property that sleeps a large number of people or opting for a house with better beach views, you can increase the attractiveness of your property. Doing so will draw more renters to your offering.

Step 3

Price your rental properly. Pricing your rental too high will scare away potential vacationers, and pricing it too low will leave you just breaking even. As MSN reports, you should price your rental so that one week's peak season rental will pay the month's mortgage. By doing this, you ensure that your investment doesn't end up costing you money. Before deciding on your final price tag, explore the prices of other rentals in the area, to ensure that your property is within the average range.

Step 4

Advertise online. If you want vacation goers to give you their budgeted vacation funds through the rental of your property, you need to make your property visible and appealing. More vacationers are turning to the Internet when the time comes time to plan their trips, making Internet advertising of vacation properties increasingly effective, reports MSN.

To make the most of your Internet advertising efforts, seek Websites that specialize in advertising beach properties; post your property on each major Website for your local area. While there is often a cost associated with posting your property, you will likely recoup this upfront expense through increased rental frequency.

Step 5

Know when to sell. If you are trying to make money on your beach investment, it is vital that you avoid emotional attachment to your sandy oasis. Sell when the market is hot. When prices in your area spike, consider selling your property to maximize your investment return.

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