WHAT IF YOU WANT TO BUY A VACATION RENTAL?
Many homes in Lake Tahoe are second-homes, or vacation homes whose owner’s primary residence is elsewhere. As such, many of these owners take advantage of the opportunity to supplement their Lake Tahoe investment with income from vacation rentals. In most cases this vacation rental income stream is helpful. Rarely does vacation rental income balance out or exceed a conventional mortgage payment, though sometimes it does and can be quite significant. Briefly, the following are points to consider about vacation rentals:

• If vacation rental income is an essential factor in making an investment, we recommend that the Buyer consider making the investment at a later time when vacation rental income is no longer essential, but is a “nice
thing to have.”

• There are a number of reliable, professional firms in Lake Tahoe that specialize in vacation rental income. Bolen & Bolen is happy to put you in touch with them, or you may check them out in this section of our site.

• Generally, vacation rental income potential is property specific. There are not set “rules” to go by. There are a number of criteria we look for when a Buyer wants to consider vacation rental opportunities.

• Vacation rental rates are higher during the ski season than in the summer, though summer rental rates near or on the lake can often equal that of the ski season.

• A reputable Lake Tahoe Vacation Rental Company usually takes a third of the gross rental income. They will do all the marketing, booking, cleaning, security, and oversee any needed maintenance and repairs.
They will even manage monthly bills. Think of their service as “turnkey:” you are the Owner, the Vacation Rental Company does everything, but as your “partner,” they are incentivized to keep your property rented
at all times that you are not actually here enjoying your vacation home.

• Some Owners manage their vacation rentals themselves. This generally results in a higher annual gross, at the expense of time and advertising
costs...etc. Bolen and Bolen is happy to discuss this possibility with you on request.

• When factoring occupancy rates, most Vacation Rental Companies say that your property will average being rented about a third of the year, or about 100 days. This is property specific and dependent on location and
amenities. Properties meeting most vacation rental criteria are likely to have a higher occupancy rate.

• In most cases, an actual rental history on a property is available. If not, there will be a rental history available on a comparative property for you to consider.