The Outer Banks weekly vacation rental market can be competitive. Today’s renters want luxury features and amenities. If you are purchasing an Outer Banks home and would like to have strong rental income, you need to keep reading.

“How well will this house rent?” is a question that most prospective buyers ask about every home they consider purchasing on the Outer Banks. The answer depends on a combination of factors, including the location, size and condition of the home, amenities, and the home’s promotion by the rental company.

Many homes have a “rental history,” which is a report of the income the home has generated in past years. Some homes which are new or have not been rented in the past will have a “rental projection” which is an estimate of what the home could or should generate in rents in the future. Some rental companies provide conservative projections; others provide very optimistic numbers. A good buyer’s agent will help you sort out the facts from fantasies.

Here are the most important features that today’s Outer Banks guests are seeking that will help determine your homes “rentability”:

Location, location, location… especially on the Outer Banks

Proximity to the Ocean—the closer the better!
Everybody wants to stay on the oceanfront, and open weeks often book months in advance for top dollar. Semi-oceanfront (second row) homes usually book next, and then homes on the Oceanside (the beach is accessible without crossing a main road) homes.
The distance from the home to the beach access is a common question from potential renters. Most guests prefer a short walk with coolers, towels, umbrellas, rafts and sunscreen.

Homes on the Sound side (of the main road) are often rented as well. However, the weekly rates are less and these homes generally rent for fewer weeks than Oceanside homes. Sound-front homes can be excellent rentals.

A home with a memorable view of the ocean, sound, golf course or lake will rent for more than one without.

Some neighborhoods provide generous amenities while other neighborhoods feature large lots and a feeling of privacy. Many neighborhoods are desirable because they are close to shopping and restaurants, while others are treasured for their seclusion and privacy.

Size of the house…depends on your needs and budget

There is a strong demand for larger homes on the Outer Banks. Many vacationers want homes that can accommodate several families and offer 6, 8, or more bedrooms. The very large homes often offer guests more amenities and features than smaller homes can provide and generate large incomes for the owners.

The number of master bedrooms is important. In some newer homes, every bedroom will (and should) have its own bathroom. The size of the bedrooms is also an important factor. No body wants to vacation in a closet, and some “bedrooms” on the Outer Banks are about that size.

The game room is an enjoyable feature in any home for you and your guests. A pool table, foosball table, ping pong will more than pay for itself in a strong year of rentals. A wet bar, refrigerator and small kitchen will get use by the pool table, as will a large screen TV.

You can only fit so many reasonably sized rooms in a single home. Local codes regulate the maximum square footage, parking requirements, lot coverage, number of bedrooms, etc. However, if you have room, and an unlimited budget, build the in-home theater, mid-level sitting room, upper level reading room, and the second kitchen.

Many folks prefer to stay in a smaller home with just their own family and spend their time walking on the beach rather than playing with the fancy features of a large home. This is still quite common and enjoyable on the Outer Banks (thank goodness!!!)

Features and Considerations for your guests’ comfort and enjoyment

“Does it have its own pool?” is often the potential renter’s second question. “Is it oceanfront?” is the first. Since everyone cannot be oceanfront, pool-front is quite alright for many families. Pool size is important—nobody wants to swim in a bathtub. Add the heater to your pool and you are sure to get more weeks in the fall and spring when the ocean may be too cold for swimming. The gas heaters are generally the most efficient and trouble-free than other types

A hot tub is absolutely essential for any weekly rental property on the Outer Banks.

Your guests will be more likely to return year after year if they enjoy their stay. There are several things that you can do to make that happen:

Keep the furnishings looking like new. Your home may have been built in the 80’s, but if the furnishings were built in the 80’s also, its time for a change. Change the slip covers, clean, or replace any furniture that looks worn or dingy.

Pick a theme and give your house a personality. The Caribbean colors that may be too bright to live with everyday at home are perfect for your beach home. Hangings and pieces with an island flair are popular. You can be bolder here with the décor and still be in good taste, but there is a limit.

Explain how everything works. Every week a new group of people will have to learn which switches control the lights, how the appliances work and how to turn on the VCR. Make it simple—have framed small cards with easy directions by everything with buttons. Label switches and remote controls.

Here are some other ideas borrowed from the best rental homes that will make your guests more comfortable:

Put cable TV in every bedroom. Buy the simplest stereo and TV possible. Provide internet access, but do not provide the computer. Allow pets and maximize your income (pets do less damage than children). Build a cabana bar by the pool to entertain guests, serve drinks, and stay in the shade. Buy new blenders, toasters and coffeemakers. Make sure that there is enough kitchen hardware to cook for a full house. Landscape with drought-tolerant shrubs and grasses. Paint the railings and decks on at least the front of the house. Have pictures of your family throughout your home. Think about what your guests would like to do on rainy days and have activities available. Provide a nice guest book and a gas grill.
 

Written by Gray Berryman, BROKER, ABR®, REALTOR®