Buying vs Renting a Beach Home: Pros & Cons
When it comes to choosing a beach home that is right for your family, the question comes down to buying or renting the property. There are pros and cons to both, and it is important to understand all parts of this before you make a decision.
Pros of Buying a Beach Home
The pros to buying a beach home are the financial income that you can develop from the home and the ability to use it anytime you choose. When you purchase a beach home, you can utilize it as a rental property and can turn a profit, keeping all rental funds after the mortgage is paid. You want to make sure that you put enough funds away to cover the months when rentals are slow.
If you own the beach house, you can use it any time you choose, closing off certain holidays and weekends when the home is not rented out. All you have to do is let the company renting your beach house know when you plan to use it and they will not book any rentals.
Cons of Buying a Beach Home
When you purchase a beach home, you are responsible for the mortgage, even if the home hasn't had enough rentals that month to meet the mortgage requirement. While months, when the weather is great, will guarantee steady rentals, the off-season months are not as busy and if you did not plan for the slow season, you could have to come out of your other income sources to cover that mortgage.
Another con to buying a beach home is having to keep up with maintenance. If something needs to be repaired on the property, you are responsible for covering those expenses as the owner.
Pros of Renting a Beach Home
When you rent a beach home, you do not have to worry about covering repairs or expenses on the property. That is a great benefit to renting a beach home and notifying the landlord or rental company when something goes wrong. You also do not have to maintain a mortgage responsibility for a vacation home. This is a risk that not everyone is willing to take.
Cons of Renting a Beach Home
If you decide to rent a beach home, you are forced to have to choose from the dates available when you are ready to schedule a vacation. You do not have a variety of dates to choose from and if there are conditions on the rental agreement, you will need to adhere to those dates.