ore Afforda ble Than ManyRealize (NAPSA)—Relaxing by the water or in the mountains is more than a once- a-year vacation for people who own a second home,and the explosive growth ofthe vacation homerental industry has put the dream ofaffording a vacation homewithin reach for more people. For those whoalready own a second home, the increasing popularity of renting those homesto others is boosting retirement savings, college tuition payments anddisposable income. HowIt Works Here's helpful information to know when estimating how much you can earn by renting out a second home to others: Vacation home owners who list their properties for rent on one site, HomeAway.com’, garner an aver- age of $32,000 each year, according to HomeAway data. That incomelets most owners covera significant chunk of their mortgage paymenteach year, 75 percent or more. The numbers get even more appealing if house payments are split among more than one owner. In fact, nearly one in three vacation homesare ownedby multiple people, typically family members andfriends. WhatYou Should Know Here’s what potential buyers should consider before taking the plunge into Whenyou're noton vacation, your second homecan be at work, too, earning moneyasa rental. with fresh paintandlinens,as well as for professional photographyfor the online listing. Also considerthe tax obligations ‘on the home’s income,as wellas any local orstate tax that mayapply to the home as a rental property. + Berealistic about how much time the house will be available to renters. Thetypical vacation home on VRBO. com is occupied by renters 18 weeks a year, leaving plenty of time for use by the owners’ family and friends. Owners whouse their homes duringpeaktravel times will earn less than those who blocktheir calendars during less popu- lar vacation times. + Decide whether managing the + HomeAway.com offersa free online property is a do-it-yourself project or is better left to a professional property manager to handle reservations, guest communications, cleaning and maintenance. Homeownersreport they spend potential based on nearby high-performing, like-sized properties already tion homes whentheydoit themselves. Vacation rentals continue to grow buying and renting out a vacation home: tool called “Earn” that lets you enter a home’address and other information, then presents a range ofrental income being rented out. The tool is available at HomeAway.com byclicking on “List Your Property”or going directly to www. homeaway.com/earn. + Calculate more than the mortgage. Vacation home owners often must pay for additional insurance coverage and may wantto hire professional cleaners betweenguests. New owners may needto invest money to get a house guest-ready seven hours a week managing their vaca- in popularity each year. Travelresearch firm Phocuswright measuresthe private accommodation industry in the US. alone to be worth nearly $37 billion by theendof this year, a figure thatis growing at twice the rate of the travel industry's. Forfurther information onthe financial opportunity of renting a second home,visit www homeaway.com/earn.
