Have you noticed? The second-income stream is becoming a pretty common occurrence today. To live the life they want, people are following enjoyable hobbies, talents, and opportunities to provide a lucrative source of revenue.
One second income method that has proven reliable over time is investing in real estate. While market fluctuations do happen, prices steadily rise and a sizeable return on investment can be realized. This is especially true in small and large cities where there will be increased demand for housing due to population trends moving more and more people to urban settings. As we build “up” instead of “out” to support sustainability and strengthen downtown communities, a variety of housing will present itself.
And while not everyone can own and rent out a full apartment building or commercial space, owning a second home has an easier point of entry, and comes with a number of unique advantages—let’s look at them.
- Living flexibility – Ever been on a vacation and thought, “If only I could be here year-round, or at least part-time”? That’s why people own vacation homes! But if you want the flexibility of being in your favorite destination whenever you want without the constant upkeep of two homes, renting it out when you’re not in town is the way to go; renting part-time will also help the second home pay for itself!
- It’s a reliable source of income – Whereas running your own eBay or Etsy shop puts you at the whim of changing consumer tastes and trends, and the Uber and Lyft drivers of the world are poised to be replaced by automation, renting out a second home is exceptionally reliable. If your home is in a popular town, it’s not difficult to have it booked out for months or even over a year at a time—and most services you can use to rent it out do offer deposit features, meaning if a renter has to back out you won’t lose that income entirely.
- It’s easier to rent out a home than ever – Back in the day, finding tenants and renters was a bit of a nightmare (comparatively speaking), and required professional services, listings, and more. Today, like in most industries, the internet has changed the game. Listing is as easy as downloading an app on your phone or visiting a website, and with many options out there—Airbnb, HomeAway, Tripping.com, and more—that make the process of listing your home quick and painless, you can start filling out your available bookings in no time at all. And certain developments, like 45 Asheland, will offer STR coordination or a concierge to take some of those details off your hands and ensure a seasoned professional experience for both you and the renter.
- Minimal time commitment – Unlike having a second job, or running a digital shop (which requires you to continually having to make and promote new goods), when renting out a second home most of the effort is up-front. After you get the home listed and bookings start coming in, there is only occasional maintenance to do at the site; even payments are generally handled through the listing service. And if you’re renting out your home for longer periods of time, like a month or a year, a lot of the upkeep and cleaning is taken care of by the tenant, so you can sit back while your property makes money for you.
You can own and rent a second home in any place, but Asheville is a perfect example of the kind of location where you’d want to own a space you can rent out, whether or not you live there already.
Asheville is an up-and-coming metro area, with all the convenience of a large city without feeling locked into an urban jungle. It’s nestled in the Blue Ridge Mountains, meaning hiking, camping, kayaking, and other outdoor activities are just a few minutes from the city itself—a pretty rare thing for the modern city. This is why Asheville is such a popular tourist destination (even the official minor-league team in the city is named the Tourists!) as well as a place to live.
So when it’s tourist season (and in the climate of Western North Carolina, the nice weather makes tourist “season” most of the year), visitors will need places to stay in Asheville—some for a few days, and some for longer—while space is at a premium due to the influx of travelers. This is a perfect situation for someone who owns a second home in Asheville, since the laws of supply and demand will very much be on your side. And with Asheville’s burgeoning sustainable business, brewing, and startup scenes, home and condo values are expected to rise significantly in the future.
This is the golden scenario for someone who owns a second home; a location that is on the rise, has seasonal lodging demand spikes that can be profited from, and is a world-class place to visit even when it’s not peak tourist season? That’s a win-win-win.
Whether it’s in Asheville, Cape Cod, Boulder, or any place you feel a connection to, second-home-as-second-income is a reliable route for living the way you want, with a little more means. It takes a bit of determination to do it—no one buys a second home on a whim!—but the rewards, both monetary and intangible, are well worth it.