September 4, 2009, Newsletter Issue #182: Why Rent Your Vacation Home?

Tip of the Week

Vacation homes are gaining popularity every year. Maybe you are a Baby Boomer nearing retirement and considering a home in a dream location. Maybe you inherited a family vacation home that you want to keep, but would like to off-set the expenses and supplement income. Maybe you want investment property that you can rent while waiting for property values to increase for future resell. These are just a few scenarios that entice real estate owners to put their property on the vacation rentals by owner market.

There are also tax advantages to vacation property rentals. Most vacation homeowners qualify for the same tax benefits traditional property landlords enjoy. Some of the factors to research when considering renting your vacation home include:

· How often do you want to use your vacation home? Personal use is limited when claiming rental deductions on your income tax.

· How often do you want to rent your vacation home?

· How will you get the word out about your vacation rental?

· How will you handle the logistics of inquiries, bookings, cleaning, maintenance and rental problems?

It pays to consult an attorney specializing in real estate rentals and a certified professional accountant to ensure that you reap the rewards and minimize the risks of rental property ownership.

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