Take risk out of second-home rental

While rent-by-owner agencies say it's a snap to find renters for your family cabin on the Internet, the best way to ensure your sanity -- and your second home's safety -- is to first consider renting only to family, friends and neighbors.

It's simply human nature. In most cases, consumers choose familiarity over the unknown almost every time. For example, borrowers historically have selected fixed-rate loans instead of adjustable-rate mortgages because they are predicable and not as risky.

When you consider family and friends first, you usually get the renter that you know and hopefully trust, who will give you less hassle and who is most likely to leave your getaway in the condition they found it.

In a recent column, we stated the best potential pool of renters were from the families that had cabins close to yours. However, never overlook the business associates, teammates and casual acquaintances you see all the time in town. These two separate and independent groups can produce more than enough folks to fill your last-minute rental calendar.

Think about it -- how many weeks do you realistically have available? Wouldn't you want to fill your available weeks with somebody that you know? Why rent to a stranger who has contacted you off the Internet when the Fitzgeralds from the parish church known for their altar-boy kids would die to have the week you can't use before Labor Day?

It's a huge advantage to have personally witnessed how potential renters keep their own home. You'll rest easier knowing they probably will keep your place in much the same condition that they keep their own home. (Conversely, your visit to their home may be the primary reason NOT to rent to them!)

Casual friends and acquaintances often know the going rate and usually expect to pay -- so charge them. If your place clearly is on a resort's 50-yard line, has the best dock, crab pot and feather beds, your friends and neighbors will be prepared to pay top dollar for your top spot. Rental agencies have found that the best locations and expensive abodes typically receive the most attention. Given a choice, the average person will splurge and select elegant over ordinary for a short period of time. It's especially true when you are on vacation or a corporation is picking up the tab. (Certain family members will never splurge, creating interesting dynamics). ...CONTINUED

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