Using a Vacation Home on the Lake, Mountain or Beach as a Rental Property

Posted on by Sean Creedon

A vacation home is a wonderful investment. Years of enjoyment and family memories will be made there. But if it’s used as a vacation home only and no one lives there full time, it can be a financial drain. Maintenance costs and utilities, not to mention the mortgage itself, can really add up. People who want to be able to afford their luxury homes in the Triad, NC, and a vacation home as well, could consider renting out the second home when it’s not in use. But before doing so, here are some things the homeowner should know about renting out a vacation home.

1. Tax implications. The way you use a vacation home, how long you stay, how long you rent it out, all affect the way you file your taxes.

The regulations from the IRS are very particular, but there is one possible “loophole.” The owner may stay in the home longer than 14 days while performing maintenance, as long as that is the primary use during that time, and the property can still be considered a rental.

2. Rental success depends on a few important elements:

Keep your Luxury Home in the Triad, NC, and Afford a Vacation Home Too

If you have dreamed of owning a luxury home in the Triad area, NC, and a lake, mountain or beach house or other vacation home, it is possible. Renting out your vacation home can bring in enough income for maintenance and the mortgage payment, making it possible for you to afford a second home.

 

Smith Marketing with Allen Tate Realtors® can help you find the home you want in the Triad area and help you find a REALTOR® in the vacation area you want.