“I would like to purchase a lakehouse for my family to use but also want to maximize the income I can generate from it via vacation rentals. What is the best house for this?” I get this question a lot! The short answer is…buy a house that allows the most sleeping possible for the price. Think of things like: is there a BR I can put multiple sets of bunks or beds in? Can I put beds in the basement? Is there a bonus room for beds. Bottom line, the number of people the house can handle is USUALLY the primary driver of the price per night. One thing is for certain…THE BIGGER THE BETTER. Big houses make the best rentals because multiple families can go together and when they do they typically stay longer (5-7 nights vs 3-4 nights).
Couple of examples:
- Three BR home. Setup for 2 families (sleeps 8-10) to rent….2 adult BRs (Queen or King beds), 1 kids BR (lots of beds). Add lots of amenities: kayaks, paddle-boards, pedal-boats, lillypads, etc.
- Four BR home. Try to buy one that 3 families (sleeps 12-14) can use….3 adult BRs, 1 kids BR and maybe additional sleeping in a basement/bonus room/hallway/etc.
- Five or more BR home. These homes will probably have a lot of room and each will be a little different. Usually these can be setup to easily handle 3-4 families (sleep 16-20). Just make sure the living areas (hopefully 2) can handle the numbers. You want to ensure everyone has a place to sit down to eat and to lounge during the day and after dinner.
I have put in previous post but there are a few rules of thumb in determining rate per night: $100/nt/BR or $100/nt/$100k of home value, $150/nt/family you can sleep. Examples: 3 BR house averages $300/nt, $400k house averages $400/nt, house that sleeps 3 families (12 people) averages $450/nt.
As always, call me to discuss specific properties. I am glad to go out and evaluate a property pre or post purchase.
Jeff Thomas…205.492.3211 or Jeff@SmithLakeRentals.com