Rent Your House as a Vacation Home for Cash

Lori McRae, a resident of Olympia, Wash., owns two vacation homes in the Lake Cushman area of the Olympic Peninsula. She and her family use one just for themselves, but the other property they use mainly as a rental. Along the way, she said, she's learned one thing about life as a vacation rental landlord: "Watch out for yourself."

Roughly 25 percent of all homeowners that purchase vacation homes buy their property with plans to rent it out, according to the National Association of Realtors' 2010 Investment and Vacation Home Buyers Survey. If you're considering a vacation home purchase or renting out an existing vacation home property, consider the following advice.