If you are an enterprising person and want to get into real estate, there’s a trend you can consider. It’s renting log cabins with rustic appeal and modern amenities. Thousands of people rent cabins every month of the year for vacations and weekend getaways.
Renting cabins is a niche market that can be very profitable in virtually all states. Research the market in your area, find a reliable contractor, obtain a building plan, and secure the financing. Since this is a business venture, you must also make a business plan for the first three years. Start with one cabin for a test and build another when feasible.
Location Is Critical For Building And Renting Cabins
You’ve heard it said the most important thing about real estate is “location, location, location.” This is an accurate statement, and you should choose a location that is visible and easily accessible to attract customers. The right location can significantly impact the property’s value.
Location determines how desirable your property will be and how it meets supply and demand. The location also determines how much you can charge, the property’s monetary appreciation, and the optimal rental strategy. You can make changes to the rental cabin such as new furniture or stain it a different color. But there is one thing you cannot change and that’s its location.
Go With Log Siding Instead Of Full Logs
Real estate experience has shown that you must control expenses to be profitable. You will be limited to charging the going rate for renting – not higher. This means the money is made by creating the largest spread between costs and revenues.
You can obtain the full log cabin look without the full log expenses and drawbacks by building with pine log siding. These are the advantages of log siding:
- You save money on materials, equipment usage, and labor costs
- The cabins can be built faster and easier with log siding
- Log siding is secured to conventional wall framing
- Cabin owners with woodworking skills can install the siding or you can hire a contractor
Study The Local Market For Building And Renting Cabins
Next, study the local market for renting cabins to see if the endeavor is feasible. It’s a bonus if you already live in a tourist area that gets a lot of visitors. Once you have completed enough research, you will know the best decision to make. Consider these elements:
- How many visitors/tourists come to the area annually?
- Do enough people stay for a few days or weeks to make it worthwhile?
- Obtain help in developing a professional business plan.
- How will you draw people to your rental cabin?
Make It Both Rustic And Modern
Studies show that renters want a rustic-looking cabin but also want the conveniences they have at home. The exterior should look like an iconic log cabin but the interior can vary.
- Use log siding, pine paneling, drywall, or a combination of them on the interior
- Provide traditional kitchen appliances
- Provide conventional bathroom amenities
- Keep the cabin clean and uncluttered
- Use decorations that go with its location
- Install a conventional HVAC system
- Install knotty pine flooring
A safe fireplace or wood-burning stove is a must and will provide customer satisfaction.
Use Standard Rental Terms With Renters
Don’t go into the rental business blindly or you will lose money. Obtain a standard rental contract for your state and stick to its terms with your renters for long-term renters. If you are new to renting property, you will find some unfamiliar and significant clauses in contracts. You need to know what to do if something goes wrong.
Gather the same type of information from short-term renters that motel and hotel clerks require. Accept credit cards and other types of ‘safe’ payments. You must decide whether to charge a deposit in addition to rent for anyone who wants the cabin for several months. Research what other cabin renters do in this situation to make a good decision.
Learn To Promote And Market Your Cabin(s)
Promoting a rental cabin involves gaining people’s attention, holding their interest, and encouraging them to buy, or in this case, rent. You must aim for a high average occupancy rate year-round to make money. Research what other cabin renters do in a variety of tourist areas to obtain a broad view of marketing. Gear your promotions to the type of clientele that visit your area.
Prepare For Seasonal Use And Slumps
All businesses have seasonal highs and lows in sales for various reasons. Save some of the profits during the peak months to pay for loan payments, taxes, insurance, and upkeep during any slow months. Remember: If you take out a loan to build a cabin, the profits will be low the first few years. Once it is paid for, profits will go up drastically.
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