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"I'll just buy a condo on the beach, and rent it out for $700 a week. I will be rolling in money." WRONG!

Although you can make some rental income on a property. Seldom will you make a huge profit. You may not make any profit at all. There are many factors to consider.

1. Make sure you can afford the payments, utilities, insurance, and upkeep when it is not
rented. In the southeast U.S. there are many attractive places to have a condo, or home on

the beach. However, that beach property is only in season as a rental certain times of the
year. The rest of year you may not have any rental income.

2. There are monthly condo fees, that go on whether it is being used or not.

3. Mortgage payments continue on.

4. Utility payments continue. Although they will be less when the home is not in use.

5. Rental agency fees are deducted from rental income.

6. Cleaning fees will be charged after each rental.

7. Repair and upkeep costs.

8. "Mother Nature" can blow plans to rent for certain periods of time.

9. Insurance fees.
After every major storm insurance fees triple, or even go higher for the beach areas. Your
profit can disappear.

10.Advertising costs can be high.

Some other variables are whether there is an on site management company or if you have an off site company, or have to handle rental and cleanup yourself. An on site management company may be the best for your property, but will also charge the most, or take a larger percentage of the rental income. But unless you live full time near by, you will not want to have to make the trip to clean or handle other details every time you rent the home.

Another thing to consider is whether the area your vacation home is in caters mostly to families, or to the college crowd. This can determine how much wear and tear will be on the property.

If you are purchasing a vacation home because you will be retiring there some day, it can be a good idea to rent for extra income. Renting the home out to just help out with the payments is fine. Just be cautioned of the business expenses that will be involved. Don't cut yourself too short, in order to allow for the expenses, and non rental times.

If you have a vacation home, you will not truly know if renting it out is for you until you try it. Just be sure you know all the incidental costs and fees that are associated with renting your vacation home. Renting your vacation home may be the best help to you, or something you decide you want to avoid completely.

Learn more about this author, Kathleen Couch.
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