It seemed like a great idea twenty years ago-you’d buy that condo in Florida, vacation there as often as possible, then someday sell your primary residence and spend your Golden Years basking in the sun. Now, “someday” is here and-lo and behold-you’ve changed your mind. You now have grandkids you don’t want to leave, all your friends are nearby, and frankly, the idea of nonstop sunshine with no autumn leaves or snowfalls has lost its luster. You’d hate to sell your vacation getaway, but keeping up two homes has gotten too pricey for comfort. The solution is to rent out your vacation home.
 A growing number of second homeowners fall into the “retirement age” demographic, and quite a few of them have-at one time or another-kicked around the idea of selling their primary residence and moving into that beachfront condo full-time.  Yet, changing lifestyle trends, combined with a rising cost of living, have led many of them to reconsider the fate of their vacation villa.
If you’re a second homeowner, here are five reasons why you might consider renting out your vacation home:
1. Circumstances have changed since you made your retirement plans. Maybe grandchildren have arrived on the scene and you can’t bear the thought of moving hundreds of miles away from them.  Or your parents are in poor health and need you nearby. Or your spouse has passed away and retiring in the Great Smoky Mountains was his idea, not yours.  Regardless of specifics, your life bears no resemblance to what you thought it would look like back when you made your retirement plans.
2. You’ve suddenly realized there’s no place like home. Maybe there are no dramatic life circumstances keeping you from moving to your “dream destination.”  Maybe you’ve simply changed your mind. You’ve decided you like being near your friends; you don’t want to leave your church or synagogue. Or perhaps you’d like to stay in your hometown most of the year (you kind of like the change of seasons) and spend the bitterest winter months in your beachfront condo.  Renting your second home out during the time you are not staying there makes it financially feasible to keep both homes.
3. You’ve decided to postpone retirement. It is not unusual for people to test-drive retirement and find that it’s just not for them. Work can provide many rich rewards-structures, social interaction, mental stimulation, a sense of purpose, and so forth-that people keenly miss when they retire. And when they discover that quitting “the rat race” isn’t quite what they thought it would be, more and more people are opting to return to the workplace. Also, there are people who simply can’t afford to retire.
When people decide to postpone retirement, they may also postpone moving to their retirement home.  Even if they do retire and then rejoin the workforce either full-time or part-time, they may not want to live in the city they associate with retirement.  
4. Your fixed income hasn’t kept up with your lifestyle.  Even when you’re happy to give up the daily grind of your job, losing the paycheck that comes with it can be pretty painful. Factor in inflation, rising taxes, and unexpected “new” expenses, and you may find that what seemed like a manageable cost of living five years ago doesn’t seem that way anymore. Your second home, even if it’s paid for, may start looking like a liability due to property taxes, homeowner’s association dues, and maintenance costs. However, it you rent it out, it becomes a source of new income.
5. You’re currently renting your vacation home through a property management company, but you’d like to make more money.  You may want to eliminate the property manager and consider “rent by owner”.   This is a good option if you have the time and energy to do bookkeeping, respond to renter’s requests and orchestrate routine maintenance details.  Not only will you net more money, an added benefit is meeting interesting people and forming friendships.