Buying a vacation home in Sunriver, Oregon can be confusing and complicated. Often times a buyer will want to purchase a home in Sunriver after renting a home for a week or so. The buyer realizes that Sunriver offers a lot more than just a relaxing resort. The resort itself has 2 pools, over 35 miles of bike paths, shopping, a spa and first class dining.
Sunriver is a family focused resort that has over 4000 residential properties. Not all of the homes in Sunriver have or are used as vacation rentals. There area a couple of areas that actually do not allow nightly rentals. Buying a home that you intend to be a vacation rental takes more consideration than the price and location of the home.
The vacation rental market is well represented by different types of rental management. There are 6 major rental companies, and some owners manage their own rentals with web pages and a cleaning service.
When purchasing a vacation rental in Sunriver it is important to consider how you will manage your home. Rental companies have several different programs for you the owner, in general I tell my buyers to expect to loose at least 50% to management costs, maintenance, upkeep and other expenses.
Most homes do not pencil out to pay the mortgage on the rentals. You have to consider the fact that you are also gaining appreciation, the use of the property when not rented, and the tax incentives that an accountant could better inform you than I can.
As you consider Buying a vacation rental you will want to consider many things below are a few of them with a brief description of what is best and how they are important to your purchase.
Is the home furnished? Most homes that have been used as a vacation rental or second home are sold furnished. This causes a few issues such as the furniture although included in the sale often times is done so at no stated value. This is because lenders do not loan on personal property. The furnishings range from very tired and worn to brand new and ready for your guests.
What are the rental rates for a home such as the one you are considering? Rental rates are typically higher in the busy season and lower in the off season. Some rental companies run specials to bring in business during the slower times.
What is your competition? There are a lot of 3 bedroom 2 bath homes for rent in Sunriver, recently a lot of larger homes have been built and sold in Sunriver. They are almost mini hotels – it is not uncommon to find a 5 bedroom 5 baths home. The very best rental in Sunriver is a 2 bedroom 2 baths home, not what most would expect.
Has the home been on a rental program and if so, what is the rental history? Many times you will find that leaving a home on the current program is the most profitable. The home already has an established list of renters and often will have a lot of repeat business.