Renting out your property while away on a long holiday seems like a win-win situation upon first glance.
Your temporary tenant benefits from a furnished property and you can use the rental amount to cover your mortgage or rent while away.
However, before pursuing this strategy it’s a good idea to consider the following factors.
1. Do you have the authority to rent?
If you’re the sole property owner, you can most likely do what you wish. However, if you co-own the property with someone else you will need their permission.
Those who are renting their property will also need permission from the appropriate property manager or landlord. It’s important to obtain this before subletting or you could face consequences.
Not only could the booking fall through, but the landlord may decide to take action against you for violating your lease.
2. Does it make sense to rent?
Renting your property makes sense if you’re going away for an extended period of time or over peak travel periods.
However, a property manager will most likely not be willing to take on the listing if you’re only going away for a month during off-season.
Renting your property at the last minute is also probably not recommended, because the majority of tenants will book properties well in advance.
You’ll need to give them some lead time, particularly if you’re going to be away during peak season. It’s best to list your property at least 3 months ahead of your departure to give adequate time to find a suitable tenant.
3. Who will manage the property in your absence?
It’s tempting to leave management in the hands of a friend or family member when you’re away, but you should think about whether or not they will really be able to handle this responsibility.
Although they can help water the plants, if any serious maintenance issues arise the tenant will need to have someone to call for immediate assistance.
A professional property manager may be worth the cost simply for this reason.
4. Preparing the Property
Just as you don’t want to wait until the last minute to list your property, you’ll also want to give yourself adequate time for preparation.
The property will need to be cleaned thoroughly, with all personal effects stored in a secure location.
You’ll also want to think about issues such as mail forwarding and bill payment while you’re away, as the last thing you want is for your utilities to be switched off.
With a bit of advance preparation and planning, renting out your property when you are away can be a rewarding and lucrative proposition.
