Owning a beach house is a true privilege. Like owning all properties, though, it also comes with a set of responsibilities that must be taken seriously.
Of course, perhaps the most common concern of beach house owners is that their property investments may slide right into the ocean given enough time. Still, it is important to set reasonable expectations. It takes years and years for events such as these to transpire, and so long as you have not purchased something a hairs breath from the water, all will likely be well.
That said, it is important to be acutely aware of the costs of owning a beach house. These types of properties can be something of an extravagance, and extra expenses can be expected. It is important to be fiscally responsible here and make savings wherever possible. Keep reading for some of our tips for managing the costs of owning a beach house.
Figure Out Insurance Costs
Beach homes can be more costly to insure. There are multiple reasons for this being the case, so it is important to account for them.
The first justification for the price hike is to do with vacation properties. If the property is left vacant for extended periods, it can cause insurance rates to go up. At the very least, it should be visited weekly, rather than seasonally, so that you can bring the costs down. To that end, the closer the beach house is to your main property, the better.
Another way to mitigate these costs is to promptly sign up a few holidaymakers to keep the property occupied when you are not in town. If you are away long-term, having tenants might be a good idea. Obviously, you’ll also get a steady income from these arrangements, and you will likely receive better value for a beach house. All of that should help you mitigate insurance costs.
Insurance premiums can also rise due to the risk of flooding. Flood insurance itself is mandatory for beach homes. Rates can vary between coasts, with westerly offerings often more affordable. That said, properties can be more expensive there compared to eastern counterparts, so try to take additional care to ensure everything evens out.
Work with Quality Real Estate Agencies
Beachfront properties do tend to be more expensive than their inland counterparts. These types of homes are also more likely to become vacation properties as well, which can influence a bump in mortgage interest rates.
Therefore, it is best to understand the prices in the area you are searching to see how things differ compared to homes inland. You can learn more here with the resources of EZHomeSearch, which is run by an expert team of Wilmington coastal property real estate agents. They have many beach homes for sale at fair prices, and their listings can give you a sense of the market. You can stay informed via their blog or by opting into their email updates, too.
Beach houses will also likely be sought competitively because of their luxuriousness and potential to earn more rent from tenants. They will go fast, so working with informative expert real estate agents can ensure you keep a finger on the market’s pulse. You will act more swiftly and decisively and make more cost-effective decisions concerning your circumstances when procuring this type of property if you consult dedicated real estate agents first.
Conduct a Beach House Inspection
All poorly constructed homes have costly consequences, but building a beach house requires more finesse and precision. Beach houses are often subjected to more elements than properties much further inland. While people can purchase vacation properties with considerable speed, it is important to take the time to ensure your investment is a sound one.
Some beach house areas will have their own building code, such as North Carolina, based on the International Registration Code (IRC). For example, all metal fasteners outside of conditioned spaces, such as the deck, must be hot-dipped steel that has been galvanized. Harsh coastal environments and salt spray can corrode the metal fasteners, leading to a host of other complicated and expensive problems.
Obviously, there is a lot of important information to remember here beyond metal fasteners alone. A dedicated home inspector should be able to monitor things and let you know if any hazards are present and if any additional work needs to be done, helping you to anticipate bigger spending where necessary. Otherwise, they may be able to help you dodge an expensive problem beach house.
Alternatively, you could become well-versed in regional beach house building codes yourself, but there will be a lot of information to unpack. There’s a reason these types of inspections are jobs in their own right, so unless you have a flexible schedule and lots of free time, it is likely more cost-effective for you to hire the specialist and get things moving faster.
Make Home Modifications
Sea salt can damage your home, but the costs can be mitigated if you make changes after the inspection. It is worth reviewing these measures regularly to ensure you have made all the cost-effective modifications possible, especially as studies show that salt corrosion can affect homes up to 50 miles inland.
For instance, you can install fiber-glass framed windows and doors, as metal variations can rust. Ceramic coatings can be applied to mandatory metal surfaces to counter rust, while wooden furniture should have a sealant applied for similar protection. Special paints can also keep surfaces salt-free.
Some modifications may seem pricey initially but can ward off larger expenses later. Therefore, each adjustment is a worthwhile long-term investment, so try to adapt when maintaining your beach house.
Budget for Property Management Fees
There is a lot to think about when owning a beach house. If it is not your primary residence, then you cannot always be there to keep an eye on things. That said, a property manager can be.
A beach house must be looked after regularly. Otherwise, the costs of inaction can build. Many beach houses might require landscaping work. More vigorous cleaning may be required, with stronger coastal winds accelerating wear and tear. There can also be location-specific maintenance that requires attention, such as concerns about air conditioning for any beach house on the west coast. Property managers can identify and alert you to these problems.
Property managers can charge larger fees for their services, so it is important to shop around and ensure you get good value. Some may offer optional services, such as advertising your property during peak tourist periods, that you may or may not require. Know your circumstances and what you need, and hire accordingly.
You could also do things yourself and budget to purchase property management software. These digital tools give you access to maintenance tracking, tenant screening, and online marketing services. If you’re proficient enough in its use, you could potentially remove the need for a property manager and more tightly manage your spending around the beach house.
Conclusion
Though there are costs when purchasing a property of any type, it is important not to be deterred from your life goals. So long as you responsibly prepare for these expenses, you should find that your plans come together more affordably. Take specialist help, beach house inspections, insurance costs, and property management fees seriously, and you should have a charming residence or vacation home in no time.
