Vacation homes, holiday cottages, or vacation houses are residential accommodations used primarily for vacations, usually for less than thirty days, frequently for less than a week. Vacation homes are generally smaller than hotels but often still have kitchens, bathrooms, fully equipped bedrooms, and amenities like tennis courts, pools, outdoor living spaces, gyms, and game rooms. Some vacation homes may also have additional space for renting out for extra income. Vacation homes are popular because they offer more space and privacy than hotels, even though they are usually not as big. Vacation homes are a great alternative to hotels for short term stays especially where there are no children at home, the size of the house depends on the amount of people staying, and it is within driving distance of most attractions. Since vacation homes are generally rented out for shorter periods, owners often do not invest in them much, if at all. There is the same reason why a lot of real estate investors bypass buying vacation homes altogether. The absence of investment means that buyers are limited to those that are already on the market, making them value their properties lower than secondary residences. This has created a dilemma for owners of vacation homes; primary residence properties cost more, but they can be much harder to sell. Realtors are in the business of selling properties, but they also have to sell vacation homes. A Realtor has to compete with other real estate agents who will list a house for vacation rentals. They have to negotiate with property managers to get top dollar for their properties. Property managers can demand higher rates from vacation homes and charge higher rent. Realtors need to make a better profit from their rental business than from homes listed for vacation rentals. A solution to this problem is to form partnerships with vacation home owners and property managers. You take in a good profit from the rental, pay their franchise fees, and earn a percentage of the rental income. The more money you earn per vacation home, the easier it becomes to turn a profit from investment properties. Your partners will also appreciate the extra publicity and the potential for new referrals when you can help them market vacation homes. Property management companies usually own vacation homes, but sometimes they manage more than one. It makes sense to purchase one or two vacation homes to spread your risk. When you buy a vacation home with a property management company, you'll pay slightly higher interest and monthly rental fees. Property management companies earn a commission from the primary residence owners. Since they are paid a portion of the rental income, they are able to pass these costs along to you. If you purchase investment properties with your primary residence, you can count on owning more vacation homes, since you can keep them and rent them out when you aren't using them. But you won't have any investment property to manage. This is beneficial to some investors, but not ideal for others. If you want more control, consider renting out vacation homes when you aren't using them. Vacation homes usually come with a contract that details the rental agreement, which may also include specific guidelines for rent periods and dates. You and your partner must agree on the number of days you can rent the property and the amount of rent. Any rental income must be applied to the mortgage principal, not the maintenance expenses. Any income over the mortgage principle must be applied first to paying off the primary residence's mortgage. Many investors rent, vacation homes to make money out of timeshare resales. For them, the investment value of timeshares isn't as important as the capital appreciation. Timeshare villas can have great resale values even after a sell and rent back plan has been arranged. You may have to pay a higher commission to a timeshare company to rent out your timeshare villas instead of a timeshare, but this may end up being more cost effective for you in the long run.