There are many benefits to owning multiple mansions or homes, but the downside is that maintaining them can be impossible to do by yourself. You probably have a busy life, leaving you with no time to deal with maintenance-related matters. The good news is that all it takes is strategic management. In this post, we’ve put together a few tips to make your life as a multi-mansion owner a lot easier.
What Are the Benefits of Owning Multiple Homes or Mansions?
Before we dive into the how-tos of multi-mansion management, let’s take a look at why someone would want to purchase more than one home or mansion in the first place.
#1. Real Estate Is a Sound Investment
Unlike other investments, real estate is relatively less risky. While the real estate market may have its ups and downs, in the end, it will almost always appreciate. This means you have the advantage of having long-term profits – in fact, Realtor.com predicts that the median price of homes will rise by more than 5% in 2023. Properties in scenic destinations (such as vacation properties) have an even higher chance of appreciation.
#2. Rental Income Potential
Is your second home in an area that attracts short-term tenants? Consider converting it into a vacation rental to make extra money. You won’t be staying there full-time, anyway, so you might as well rent it out to make the most out of your investment. Worried that no one will want to rent your mansion for the short term? Don’t worry. Whether your second home is a waterfront mansion or a luxury Airbnb, there will always be people who want to experience the luxe life even for a few days. The key is to partner with a short-term property management company to market your high-end home.
#3. Tax Deductions
Your second home is considered a residence if you rent it out for less than 15 days a year, which means you can claim some deductions as you would with your main home. For one, you can write off up to $750,000 in loan interest rates. You can also deduct property taxes from your second home (only if you didn’t take a property tax deduction from your primary home). In addition, you can deduct rental-related expenses if you rent out your second home and use it as your own holiday home.
#4. Retirement Plan
Purchase a second home as part of your retirement plan. Many second homeowners purchase a property in the city or town they intend to retire in and rent it out while they’re employed. In that way, they can offset some of the costs such as insurance, maintenance, taxes, etc.
It would be wise to own a second home while you can still be approved for a home loan. Keep in mind that it’s easier to get approved for a mortgage if you have work. You may not be able to get a mortgage for your retirement home if you buy it after you retire.
#5. A Getaway For Yourself
Owning a second home gives you the freedom to get away for a while. Your second home will always be waiting for you in case you need an escape from your busy life. Furthermore, if your second home is situated in a place you and your family often visit, you can save on accommodation costs.
Tips on Managing Multiple Homes or Mansions
It can be a real headache to manage one mansion – imagine managing multiple mansions. With more responsibilities on your plate, it can seem impossible to keep each property in tip-top condition. If you’re in this situation, below are some tips on how you can make owning multiple mansions more manageable.
#1. Create a Maintenance Checklist
The secret to staying on top of your maintenance to-dos for multiple mansions is to create a checklist. With the use of a checklist, you can keep track of what you need to do and what’s already done. That way, you won’t waste your time doing the same thing twice or risk forgetting to do your tasks. Your mansions may also have distinctive needs (e.g. high-end homes tend to have unique features) that a checklist can help you keep track of. You can provide each property with the care it requires.
#2. Invest in Security Systems
Even if your homes are in cities with low crime rates, don’t take your chances. Mansions mean money, so don’t be surprised if burglars target your home. Since you won’t be around 24/7, it would be best to install security systems that not only deter criminals but also allow you to monitor your home’s situation from afar.
#3. Visit Every Mansion Regularly
If possible, pay frequent visits to every home. You won’t be able to assess the home’s condition from afar (not unless you’ve partnered with a property maintenance firm), so you’ll need to inspect it in person. If you fail to visit your home often, there’s a good chance you’ll forget it’s even there and end up neglecting it.
#4. Review Your Insurance Policy
Many homeowners think their second homes are covered at all times, but the truth is that most policies don’t protect empty second homes. The reason is that, from the insurer’s point of view, vacant homes represent more risk than main homes. With no one to keep an eye on the property, what’s to stop criminals from causing mischief? Plus, since you’ll be absent for most of the year, that means your home will probably be poorly maintained.
To bridge the coverage gap, you may need to buy additional vacant home insurance. It’s designed to protect properties that are unoccupied for extended periods.
How a Mansion Management Company Can Help You
By far, one of the best things you can do to ensure proper mansion management is to partner with a property maintenance company. There is a long list of obligations that come with owning multiple mansions, and you may not be able to handle them by yourself. Remember that a homeowner’s responsibilities will build up the more properties they buy.
It would be wiser to pay someone to deal with all property-related tasks for you. A mansion management company can easily handle day-to-day duties such as conducting maintenance, screening short-term tenants, preparing the home for you or your guests, and more.
In addition, the presence of a mansion management company can make sure criminals stay away from its premises. While they won’t be around 24/7, they will pay regular visits to your properties – most of the time, this is enough to deter would-be burglars.
Premier Mansion Management Services in South Florida
When you choose Luxury Property Care, you’ll receive expert care for all your South Florida mansions. As a full-service property management company, we take pride in providing every single service a homeowner could want and need. Whether you’re looking for someone to take care of your mansion while you’re away or tackle your short-term rental activities, you can count on us for unparalleled services.