PART 1: WHY 2019 MAY BE THE YEAR TO TAKE THE PLUNGE
– By: Christina Dube –
TripAdvisor consistently ranks San Diego among its top 10 Travelers’ Choice U.S. Destinations. Those of us that live here aren’t surprised. San Diego’s 70 miles of rugged Pacific coastline, mild weather, strong economy, thriving culinary scene, and top-notch medical institutions are all contributing factors that draw visitors to this paradise we call home.
According to data provided by Beyond Data and analytic team SmartAssets, Miami and San Diego are the most profitable cities for Home Away and Airbnb hosts.
The combination of warm weather and (relatively) affordable housing make these two cities a better bet than popular but expensive destinations like New York and San Francisco.
Why 2019? In July the Fed reduced interest rates for the first time since 2008. California housing continues to be in strong demand, but growth in the high-end market is expected to slow in 2019. One way for high-end home owners, especially those with multiple residences, to capitalize on this demand without relinquishing assets, is to enter the luxury rental market. The financial burden of owning and maintaining a large luxury home is offset with rental income while not monopolizing the property with full-time tenants.
Why you shouldn’t DIY your luxury rental…
Simply put, California laws protect renters. While this is great for preventing landlords from potential abuses, it famously allows for squatters and potential legal issues that ensue. Evicting a tenant that overstays the terms of the lease can be time consuming, costly and emotionally draining. Adding to the layers of potential issues, there is a growing trend that social media-centric sites like AirBNB are frequently suing local governments and being battled by cities with new ordinances restricting classifications on rentals. While there is great revenue potential in luxury rentals, this market segment is best left to professionals.
An experienced real estate agent working in close conjunction with a real estate attorney are key players in protecting your assets with the least amount of risk and highest profitability.
MAKE YOUR LUXURY RENTAL STAND OUT
San Diego’s recreational offerings are as diverse as its terrain. The rolling hills offer stunning hiking and world class golf while our coastal areas are popular with surfers, bike enthusiasts and nature lovers alike. Providing “toys” such as surf boards, beach gear, bikes and possibly even vehicles are great ways to appeal to the high-end renter who wants to enjoy all aspects of San Diego’s fabulous lifestyle.