There can be hidden costs to buying a second home or vacation property!
While there are great perks to having a second home or a vacation property, like knowing you have somewhere to go and escape the day to day stresses, and you can always rent it out to help with the expenses, be aware that there are hidden costs. If you’re thinking about buying a second home or vacation property in Colorado, keep this in mind.
If you’re planning on living in or renting your vacation property, you’ll have to furnish it. So there is a hidden cost to furnish the home. In order to keep this cost lower, look for things like estate sales or higher end second hand furniture stores. Just be sure to get furnishings that are in good shape, especially if you want to rent it out. Shabby chic is cute, shabby isn’t.
Next, cleaning costs. Yes, after it is rented do you want to be the one that has to travel to clean it? Keep in mind that it’s not just a skim over cleaning. Remember what your guests are paying to stay there and think about what you would expect if you were in their shoes. Hiring a cleaning company is definitely necessary.
If you are buying a second home and you decide to rent it out, things will wear out, and you will have to replace things like carpeting and flooring, appliances, paint, caulk, anything you can think of. Then, of course you’ll have the repairs to broken plumbing or electrical or heating/air conditioning. Some of these are really cheap fixes, others not so much. Spring summer and fall you may just have to worry about cutting the grass. If you think that can slide, just don’t do it and wait to see how long it takes your neighbors to complain! These are some of the hidden costs to buying a second home or vacation property.
Speaking of plumbing and electrical, you will now have a second set of bills for electricity, gas/oil, water, sewer, trash collection and other fees. Don’t forget real estate taxes, homeowners insurance and homeowner association fees. If you hire a property management company, there are fees involved with their management as well.
Owning a second property is fun and can make you some extra money, but go into it with eyes wide open.