- Not Yet Ready to Rent?
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
Understand your costs
- Calculate your utilities, property taxes and mortgage (including principal, interest, taxes and insurance).
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).
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
Related tips from other owners in our community