‘A GREAT OPPORTUNITY:' Vacation rental pays off for Destin man

Strangers have been sleeping in Mike O’Donnell’s beds for the past couple years and he is OK with that — he actually encourages it.

For the past few years, when the Destin resident is not using the six-bedroom home he bought off of Holiday Road to entertain visiting family or friends, he rents it out to vacationers who want to live the Destin lifestyle.

“It’ s a great opportunity to be able to own a home you can use when you need it, then also be able to rent it out and let it pay for itself,” O’Donnell said.

Americans bought more than half-a-million vacation homes last year and according to a recent survey by the National Association of Realtors 2011 Investment and Vacation Home Buyers Survey, only about a quarter of vacation homeowners say they bought with the intent to rent the property out to travelers.

Research from HomeAway, an online vacation rental company, shows that 48 percent of all vacation home owners who financed their home are able to cover more than 75 percent of their mortgage each year by renting the home out when they are not using it themselves.

When he first decided to rent his home out to vacationers, O’Donnell said he was somewhat hesitant, due to stories and reports of bad renters damaging properties, but after speaking to his neighbors and other vacation rental owners, he said his mind was set at ease.

“You just have to put together a good set of principles and guidelines,” he said. “People are going to be respectful.”

“Since we’ve had the property, we haven’t had any issues,” O’Donnell added.

Emily Glossbrenner, a vacation homeowner and author of the book “How to Make Your Vacation Property Work for You,” says property owners who have never rented to vacationers should take the plunge.

She suggests that you change your mindset and realize that it’s your second home and “not your main nest” so it makes more sense to use the home for revenue generation, instead of letting it sit empty. Glossbrenner also points to the financial impact, noting that it’s hard to deny how significant $25,000 or more a year in additional income could be, not to mention the tax breaks that are available to vacation home renters.

Looking at his property in Emerald Waters Village, O’Donnell says the home stays booked from March till November and despite the down economy he enjoyed his busiest year ever in 2011.

Rates for his “family-centered” property can range from $1,700 to $5,500 per week, depending on the season. For more information on the property, O’Donnell can be reached at majesticvilla@gmail.com.

When The Log asked him if he would recommend other property owners take the vacation rental approach, he said he would.

“It has actually worked out really well for us,” O’Donnell said.

To learn more about renting your home visit homeaway.com or www.vrbo.com