Luxury Rental Properties: What You Should Know

Luxury rental properties are essentially the same as your typical rental properties, except they’re much more expensive. They’re also not usually intended to be full-time living properties, and they most often cater to those looking to rent while on vacation. They tend to be in more exclusive locations and come with high-end features, and they command a much higher rental price than a normal rental property might. Does this make them profitable, or does their high investment price make them too prohibitive?


We need to start by establishing that vacation rental homes can be very beginner-friendly. However, this largely depends on the location. All vacation rental properties see differing amounts of interest throughout the year depending on the season, but different geographical areas see different types of these cycles. For example, a tropical vacation destination like Hawaii or Florida might see interest in the summer months in the US, while a ski destination during the same month that year would be largely empty without snow. An area with a more forgiving rental season will be best for first-time buyers, as they will be allowed to make more mistakes and still maintain profit on the property than one in a high-stakes area would.

Location, location, location

Location is a huge factor in the profitability and popularity of a vacation rental property. For example, Kiawah Island vacation rentals are best for people who love the beach and island living, and a rental property out in the middle of nowhere isn’t likely to see many renters if there’s nothing around. However, the same rental property would be inundated with rental requests if a popular music festival decided to set up shop down the road one year. All vacation rental properties operate this way; if there’s no reason for people to want to be there, there will be very little renting interest in the property. As such, if you’re interested in investing in one, you’ll need to do your research and make sure interest in the area you want to buy is high enough.

Beautiful luxury rental properties

Is it a good idea?

As with any other real estate investment, there’s a lot at risk when you buy a luxury rental property. However, there’s a lot to be gained, too. To ensure your highest possible chance of success with your investment, it’s best to do your research first, as we said above. That being said, not every property on the market has the potential to be a good vacation rental property. If you’re looking to enter that market, make sure you follow our steps above by finding a property in a good, beginner-friendly location for a beginner-friendly price.

In order to find that perfect property for the beginning luxury landlord, try looking for a property that’s just on the edge of a very popular tourist destination, or one that’s in an up-and-coming city. This article recommends purchasing your first US vacation rental property in Memphis, Tennessee, because the city is booming with new interest and things to do, but the median home price is quite low at $125,000. That being said, Memphis doesn’t have the same attractiveness that a coastal destination might, but something similarly low risk is the perfect way for a beginner to get their feet wet.

Author Bio:

Now working as a writer, Jackie Edwards started her career in the hospitality and travel industry, but after becoming a mom refocused and decided to spend more time with her family. When she’s not writing, she volunteers for a number of local mental health charities and also has a menagerie of pets to look after.

Photographs of Masseria il Trullino in Puglia, Italy courtesy of Passepartout Homes

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