By buying NOW, you will have the best opportunity to earn 100% of this year’s rental income while only paying for approximately 75% of this year’s operating costs!! Even better, if the house you are purchasing has weeks already booked for the summer vacation season you will get a check for those monies already collected by the property management company. That’s right! You can close on a house and get a check given to you for the pro-rated amount of rental income already booked for 2016.
How does that work you ask?
Since many vacation renters pre-book their vacations for the next year while they are currently on vacation, they are generally required to put down a small deposit to hold the week they have selected. Then, the property management companies mail out the rental agreements in January/February to all the renters who have pre-booked weeks for the upcoming rental season. A deposit of 50% of the rental amount is required at the time this rental contact is signed. The second half of the rent is usually due 30 days before their vacation date. You as the new property owner get a percentage of the deposit money when the renters send in the signed rental contract and the remainder comes to you after the renters satisfy their weekly stay. Thus, if a property is sold during the rental year, then you as the buyer receive the pro-rated deposits/rents which have been collected for all the weeks that vacation renters have not yet used.