Renting Your Second Home
Purchasing a second home will increase your monthly expenses. If you motivated to purchase a second home, but have some concerns about the increased overhead, look into the possibility of renting it when you are not using it.Many people do this to offset the cost of second home ownership. Buying a second is very exciting. For many, it fulfills the dream of getting away from it all in your own private space. No reservations. No having to eat each meal out. A quiet place away from the hustle and bustle of life. Our hope is that we can help you make an educated buying decision you will be happy with for years to come. If you have questions, please contact me.
Renting your second on a weekend or weekly basis is commonly referred to “vacation rental”. Offering your property as a vacation rental is a way to generate income when you are not using your properties.
The amount of income you receive depends on a number of factors, most of which the owner can control. While a vacation rental is typically considered a rental for tax purposes, there are significant differences between a vacation rental and “permanent” or “long term” rental.
Many purpose vacation rentals when exchanging property using the IRS Code 1031 “1031 Tax-Deferred Exchange”.
This general information is provided to assist in answering questions regarding vacation rentals. No liability is assumed. If you are considering renting your property, you should research the topic further including an interview with a professional vacation rental company.
The tax implications are important and should be understood. Consult your tax advisor prior to renting your property. As with any investment, there are risks and liabilities involved. Consult your attorney and insurance professional prior to renting your property. Income varies with each property and owner and is not guaranteed.
Contact Dana Smith
Dana Smith, Broker Associate | RE/MAX Gold | 559-779-7534 | DRE #00836017