Lewis Smith Lake, AL, is known as one of the cleanest lakes in the state
. This man-made lake is the perfect place to call home or to set up as a vacation spot, whether you're thinking about days spent kayaking, boating, and paddleboarding or you'd rather jump off the dock into the water for a swim. With miles of shoreline to choose from, a lakefront property could be within your reach.
Many people, however, don't want to give up their current locations for everyday life on the lake. If you've fallen in love with the area and want to vacation there regularly but don't want to live there year-round, a VRBO
rental property could be the perfect way to get the best of both worlds.
The advantages of a VRBO or Airbnb rental on Lewis Smith Lake
Having a VRBO or Airbnb rental property on the lake can bring a number of advantages.
1. Enjoy the benefits of a property on Lewis Smith Lake
When you have your own property on Lewis Smith Lake, you can block out the periods when you want to use it, then take your family up for a fantastic vacation when it's convenient for you. That means you can head out your own door and straight down to the lake, where you can spend the day engaged in all your favorite outdoor water activities. As the weather cools in the fall and winter, you can still enjoy looking out over the gorgeous lake view, spending relaxing days on your deck, or looking out the windows.
2. Let the property pay for itself
VRBO and Airbnb rentals often generate more than enough profit to take care of many of the expenses that go along with owning a home, including your mortgage and insurance. You can make much more from a short-term rental than you can from a long-term rental — and you still get to enjoy the property when it's convenient for you. Since Lewis Smith Lake is a popular vacation destination, when you advertise on VRBO or Airbnb, you will often see a steady stream of renters coming through.
3. Generate profit
Depending on how often the property is rented out, you may not only use those rental funds to pay the bills on the property but even realize profits. Some people choose to invest in multiple short-term rental properties to allow them to continue to generate profits over time.
4. Build equity in your investment
Real estate is a popular investment because it continues to build equity and value over time. Many people appreciate the value of a tangible investment: something they can touch, handle upkeep on, and manage. When you purchase a rental property on Lewis Smith Lake, AL, you'll find that the value continues to appreciate. Furthermore, you will continue to build equity in your initial investment as you continue to pay the mortgage.
What to consider when selecting a rental property on Lewis Smith Lake
When you choose a short-term rental property on Lewis Smith Lake, there are several things you may need to keep in mind.
1. What type of property fits your needs?
Before you select a property, consider whether the property will fit your needs. While it's fine to invest in a Lewis Smith Lake property
that is larger than you need — for example, investing in a three-bedroom property when you might only need two bedrooms for yourself — you may not want to choose a smaller property than your family will vacation in unless you intend to use the property solely as a short-term rental.
When it comes to VRBO or Airbnb, Heads in Beds are what bring in the money. Keep in mind you have a cost for the home, cleaning fees, taxes, rental fees, so the more beds you have the more money you can get per night.
Take the time to think about what your dreams for a Lewis Smith Lake vacation spot look like. You might, for example, want to consider whether it's important to you to have a private dock or whether you want enough space on the lot for outdoor entertainment. Carefully talk through your must-haves with your realtor so that you can find a property that fits your lifestyle
2. How often do you intend to use the property?
Before you decide on investing in a property to rent out on Lewis Smith Lake, think about how often you and your family members intend to use the property and how rigid you plan your schedule to be. If you intend to use the property yourself during a large percentage of the year's peak vacation time, including over the summer and during most long weekends, you may find it more difficult to generate the level of income you need for the property. On the other hand, if you're only going up a handful of times a year or you only intend to visit the property during non-peak times, you may find it easier to keep the property rented out. Keep in mind that you can often make more by leaving the property open during popular vacation times, including Labor Day weekend or the busy summer months, so consider whether you can time your vacations between renters.
3. How do you plan to manage your short-term rental?
When you list your property with VRBO or Airbnb, the company will take care of finding renters who are interested in vacationing in the place. However, they will not take care of the other essentials: cleaning up after guests leave, freshening up the property if it sits empty for some time, or taking care of any needed repairs. Consider whether you want to take care of those tasks yourself, partner with a cleaning company, or use a rental management company that will take care of those essential tasks for you.
4. How much can you afford?
While Airbnb and VRBO rentals can, for many owners, pay for themselves, it's important to consider your budget before you make a property investment. If you won't be able to make the mortgage payments during the slower months of the year or if you don't have as many renters as anticipated over the summer, investing in a short-term rental property may not be the right choice for you. Work with your real estate agent to find a property that fits within your budget, including the cost of insurance, maintenance, and repairs.
There is a LOT to know about short term rentals, it is highly recommended to consult with a seasoned term that has done short term rentals for years to get their full insite.
Work with the best
Contact David and Fiona King - The KING TEAM
for all your Smith Lake real estate needs. David & Fiona have owned and managed VRBO properties since 2012. You want to know all about the short term rental market, talk to the King Team.
Their professional team works diligently to find the perfect home for you and your family. Their dedication, attention to detail, and commitment to working with their clients every step of the way ensure the successful management of each transaction. David and Fiona King - The KING TEAM
has over 40 years of experience and over 125 five-star reviews.
*Header photo courtesy of Shutterstock