Rent out your vacation home for extra income

Industry professionals cite several steps for homeowners to follow in the vacation rental process.

First, owners should investigate the rental laws, and what, if any, licenses are required for owners of rental properties. They should build a rental agreement that includes policies on pets, smoking, security deposits and minimum stays. Determine check-in and check-out procedures. Some vacation rental companies mail keys to travelers ahead of time to streamline check-ins.

Deciding on a daily or weekly rental rate is key to make the most profit while not overpricing the property. Homeowners should consider accepting credit cards or PayPal charges to make payment easy for both sides.

Next, homeowners should prepare the house based on the type of renter they're targeting. Properties with video game systems, for example, and kiddie pools can attract families.

To protect your property from damage and theft, always list the inventory of property in the home.

If a homeowner has the time and energy, and lives close enough to their rental property, there are rent by owner services and Web sites available. It can be more affordable for a homeowner to handle everything without a property manager, but unless the homeowner is ultra handy, at the least they will likely have to hire a professional cleaning service or someone to handle difficult repairs like plumbing or air conditioning.

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The other options is to choose a reliable vacation property manager, who can handle maintenance, cleaning and repair services and help keep the property presentable for renters and owners.

Individual companies also offer these services. Many vacation managers also book renters and keep the house ready for when the homeowner wants to visit, charging a percentage of the rent that can range up to 30 percent or above if booking fees are included.

Homeowners want an attentive property manager who is not too busy to care for their investment and respond to emergencies. Check references and talk at length with mangers to determine their reliability. Experts stress a close study of the contract to avoid hidden charges added to booking fees, which can be 20 percent or more.

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After finding a vacation manager, seek out a way to list the home, whether it's through a real estate agent or the Internet, an essential research option. In addition to HomeAway's sites, others that offer listing services include Vamoose.com, Beachhouse.com, and myriad sites that highlight a specific region.

A well-marketed vacation home is more likely to find renters. By using listing Web sites, owners can give details of the property and show photos to prospective renters.

"Take a whole lot of them," says HomeAway's Halloran. "Make sure you have pictures of both the interior and exterior, nice pictures of the kitchen ... Take pictures of the view."

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