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Turn a vacation beach home into a profitable income.

If you have ever rented a beach house for a week, you probably noticed a dent in your bank account.

The short-term vacation rental industry has become extremely profitable in recent years, and analysts predict continued growth into the foreseeable future. This is because demand for vacation rentals – and high-end beach rental homes in particular – is skyrocketing.

More people than ever are flocking to domestic vacation hotspots in lieu of international ones, and that means supply cannot keep pace. If you are looking to invest in vacation properties, you should consider beach rental house financing.

Americans Love the Beach

Whether it is the vitamin D brightening their mood or the feel of the ocean splashing their faces, people love visiting the beach.

Here are a few reasons why:

The Sun, Of Course

Society has developed an affinity for sun-bathing.

One of the reasons is obvious: getting a tan. It is not uncommon to leave a beach vacation two shades darker than when you showed up.

Another reason is relaxation. Some people simply enjoy laying on the beach for hours on end and getting through entire books in the process. For them, it has less to do with the sun and more about calmness and serenity.

There is More to Do Than Lay on the Beach

In contrast, some vacationers are not interested in spending entire days sitting in the sand.

They might prefer spending that time on water activities, such as catching waves in the ocean, parasailing, or scuba diving.

Others enjoy staying in top physical shape, which might mean no breaks just because they are on vacation. They can take long swims in the ocean, do barefoot runs on the beach, or do aerobic workouts at sunrise before the beach is packed with other patrons.

Furthermore, whether or not you enjoy spending most of your time on the beach, you may still look for other activities now and again. That might mean finding a nearby golf resort, aquarium, or upscale restaurant.

Many beaches also have boardwalks where you can shop, ride roller coasters, play arcade games, or play a round of mini-golf.

For the adult crowd, the booming nightlife of larger beach destinations may be appealing. Vacationers can burn the midnight oil at bars and late-night restaurants.

It Might Just be the Weather

For other people, it could be as simple as the weather. They might live in an area with very cold winters, and the thought of migrating to a warmer climate for a week or two can be exciting.

Why High-End Beach Rental House Financing?

As more and more Americans receive COVID-19 vaccines, pandemic-driven travel and group gathering restrictions are relaxed. This is resulting in a sharp rise in short-term vacation rental demands, while inventory is trending toward near-record lows.

In other words, it is a great time to secure beach rental house financing and invest in a property, because daily rental rates are skyrocketing.

Decreased International Travel

Even though COVID-19 restrictions are being lifted, many affluent Americans are still avoiding international travel – for this summer, anyway.

In some cases, this has meant avoiding air travel altogether, which boosts domestic vacation travel demand for high-end beach rental homes that are within driving distance of major metropolitan areas.

Examples are Ocean City, New Jersey (New York and Philadelphia), the Hamptons (New York), Cape Cod (Boston), and La Jolla (San Diego).

COVID-19 Forced Investors to Sell Their Properties

It is no secret that many people are now facing hardships because of the pandemic.

Many local businesses could not survive the shutdown that saw only major retailers remain open. Many (if not all) employees of those businesses were let go out of necessity. Major companies downsized and laid off workers. Individual’s retirement accounts realized huge hits to mutual fund portfolios.

The list goes on, but the result is that many people are now short on cash.

While society at large huddled in their homes for countless months with no incoming cashflow, many people were forced to sell assets to stay afloat. This included short-term vacation rental properties.

People who navigated the pandemic (relatively) unscathed had the means to purchase vacation homes from cash-needy owners who had little choice but to sell. Many of those buyers then elected to make those properties their primary residences.

All of this means that rental properties are in short supply, because high-end beach rental homes are now being occupied full-time.

Demand is Rising in Previously Overlooked Areas

With people being desperate to get out of the house, there is an increasing demand for high-end beach rental homes in areas that are not usually busy.

A decreased supply of short-term vacation rentals means that would-be vacationers are faced with a lack of destination options and are willing to compromise on location. This might be the case for the next few years, as many people need time to recover financially before rental properties fully reopen in traditionally popular locations.

This creates a great opportunity for investors to purchase high-end beach rental homes in areas where real estate values reflect current vacation traffic. In other words, you might find relatively cheap houses in areas that could explode sooner rather than later.

We Love to Provide Beach Rental House Financing

It is a great time to enter the high-end beach rental market, but first, you need to secure a beach rental house financing that meets your investment objectives.

At Vacation Rental Loans, we know the beach rental market, and we will work with you to approve the loan you need to get to the waterfront and start investing.

Contact us today to request a quote.