Are you thinking about renting your log cabin? Maybe you want to help pay off the mortgage sooner. Maybe you just want extra money when your family isn’t using the cabin. Regardless of your reasons, renting out your log cabin can help offset the costs of owning it.
Most people decide to rent their property because of the financial benefits. On average, renting 17 weeks of the year is enough to cover annual mortgage costs plus all other associated rental bills. If you are looking to make a profit, rent it more often. Before deciding to rent your log cabin, know the costs. Research rental rates in your area to make sure the market can support your desired rental amount. It’s not worth it if your expenses aren’t covered.
- Are you properly insured? Consult your home owner’s insurance company.
- Be knowledgeable of local requirements such as municipal regulations and home owner’s association rules.
- Investigate tax implications
- Does your log cabin have the appropriate health and safety equipment such as fire extinguishers, smoke detectors, flash lights and first aid kits?
- To make your log cabin more appealing to renters, do you have amenities like Wi-Fi, video games, board games, a hot tub, cable or satellite, DVD/Blu-ray, sporting equipment and a fireplace?
- Is your cabin outfitted with durable furniture, comfortable seating, sufficient kitchenware, extra bedding, towels and pillows, outdoor seating and a grill?
Property Management Company or “Rent by Owner?”
What’s your desired level of involvement? If you are not interested in regularly cleaning the log cabin between guests and maintaining the property, consider hiring a property management company. A property manager will take care of housekeeping, maintenance, renter screening, advertising, responding to inquiries, bookings, handling guest requests and complaints, collecting and remitting sales tax for a cost. Commissions can range from 10 – 50%.
Rent by Owner may appeal to you if you are a do-it-yourselfer, live close by and want complete control over who rents your property and want to avoid paying a commission to a property management company. If you choose this route, it will be your responsibility to talk with prospective renters before you booking them. Is it a group of rowdy spring breakers or a nice quiet family? It might be a good idea to run a credit report and a criminal background check on prospective guests.