Many folks earn a little extra income by renting out their residential log cabins, or, at least, they’re planning to do so. Anyway, before you decide, you should think about certain issues associated with renting your cabin. In the lines below, we’ll show you what you’ll need to consider when renting out your log cabin.
#1 Legal concerns (licenses & taxes)
Before turning your log cabin into a full-time rental object, you’ll need to secure a license. Here’s the thing: any business demands a general business license. Your upcoming cabin-rental business isn’t an exception. Also, there’s a chance that you’ll have to prove that the place you’re planning on renting out to other folks isn’t your primary residence (even though that kind of setup has its own advantages). If you want to obtain your business license, you should take a look at your local government’s website
Additionally, don’t forget taxes are a sine qua non of running any business. Therefore, just like you’ll need to obtain a license, you’ll have to pay rental tax. Lastly, check your cabin location’s laws and requirements, and, if possible, talk to a trusty attorney to guarantee that you’ve obtained all the proper documentation to kick-start your business.
#2 Turning a profit might take some time
The second thing you’ll need to consider when renting out your log cabin is the profitability of the whole endeavor. It will depend on various factors, such as the location, condition, and popularity of nearby tourist attractions.
Also, your success will depend on your marketing skills (how you advertise your vacation property). Also, remember that you’ll probably need to repair or upgrade your rental object to make it more appealing to your future guests. So, yeah, there’s a good chance you’ll have to invest some good money and patience into it.
Oh, and since we’re talking about repairs, you’ll need to find a way to handle all your cabin inventory during the process. We suggest finding a self-storage facility with all the qualities you need, but before you do that – it’s essential to know all the factors that will help you decide which one’s the best for you. You’ll want to find a good, clean, climate-controlled room that isn’t so costly.
#3 Going DIY?
Next, you’ll want to consider the level of your involvement. Here’s the thing: some vacation rental businesses work with owners and handle all the necessary services (such as advertising, for instance) in return for a share of your income from the log cabin. Their level of involvement varies in accordance with your preferences. The more they’re involved, the more money they’ll want (obviously).
Of course, relying only on yourself is the best way to maximize your profits. However, suppose you’re already dealing with a lot of work in your regular job. In that case, you might consider delegating some of the responsibility to professionals and getting a property management company to handle your rental.
#4 What about seasonal property insurance?
Before renting your log cabin, you’ll want to contact your licensed insurance broker to guarantee that you’ll be covered by your seasonal property insurance policy while the property’s rented to other folks. That being said, here are some things you’ll need to consider.
Learn the rules
Unfortunately, some insurance policies won’t allow you to rent your log cabin at all. However, most of them won’t have a problem with you renting out the cabin. Remember that they limit the number of days/weeks you’re allowed to rent the property in a year. Also, some policies might include the rules on how you’ll rent out your cottage.
Will coverage change once you begin renting?
The other thing you’ll need to ask your broker is how your coverage might change when you begin renting out your vacation log cabin. That’s because certain insurance companies offer only limited coverage once you step into the renting game. In most cases, you’ll be able to keep coverage for certain risks such as fire & lighting, but there are some issues you’ll have to give up coverage for (vandalism, for instance).
#5 Before the first guests arrive
Here we’ll show you some tips on what to do before you welcome your first guests. Making a good impression can lead to favorable reviews and return customers. Therefore, we recommend doing your best to impress your guests.
Make sure your guests are familiar with the rules
It’s always tough when renting out your log cabin to folks you don’t know, but there’s no getting around that one. However, you can do something to handle some of the stress involved in the process. In other words, your guests must sign an agreement outlining any concerns or rules associated with the cabin. For instance, you’ll need to make sure that it’s clear that they’re not able to invite additional people to camp out on your property.
Compile a so-called welcome book
Here’s another thing: while you know your place by heart, your guests will probably need some guidance. You might want to compile a welcome book with detailed instructions on how to do this or that (for instance, how to operate a woodstove safely). Also, don’t forget to include a contact number so they can reach you 24/7 if they need some extra info or if any issues occur.
Make sure your place is in top shape
This one kind of goes without saying, so we’ll be short. You’ll want to ensure that your log cabin’s all clean and tidy, that your smoke detectors are up to the task, that all the windows and doors are in good shape, and so on. Also, ensure you’ve got all the necessary cleaning supplies or a first aid kit stored inside your cabin.
We hope you learned something from our list of things to consider when renting out your log cabin. By following all the info we’ve shared with you today, we’re sure that you’ll be a fantastic host and that your guests will be more than satisfied with the service!
