Understanding the Upside

According to a survey conducted by HomeAway.com, owners who rent their second homes make, on average, more than $33,000 a year in rental revenue.  Renting your second home just a few weeks each year could help offset some costs, such as your homeowner's insurance, power bills, or HOA dues.

Tips for Determining How Much You Can Make

  1. Understand your costs
    • Calculate your utilities, property taxes and mortgage (including principal, interest, taxes and insurance).
  2. Understand potential income
    • Talk to others in your community, family and friends, and your real estate agent.
    • Look online at the rental rates for other properties in your area and see where your home might fit.
    • Understand the rental seasons. (Usually there are 12 peak weeks in a rental year).
  3. Understand your break-even point
    • Use the ROI calculator below to help figure out what you can make annually on your rental.
    • Determine how many weeks you need to rent to break even
    • See whether you will you be able to make money above and beyond the costs of ownership

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