Vacation rental stay plays like broken DVD

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I might not be frothing at the mouth while sitting in my vacation rental, but I'm getting close. My bride and I just spent breakfast making a list of why we'll never again rent this unit at one of my favorite beach communities.

I've rented several properties here in the past. That's why I'm back this year. But this time, the experience has been pretty irritating. It's not a disaster, mind you. We're still enjoying the beachfront pool club with tennis courts, Olympic swimming and private beach privileges that come with the rental of $2,000 per week, after taxes, fees and insurance. We also enjoy the views of a lake with plenty of turtles, as well as cranes and other waterfowl.

Yet, when I plop down that much money on a beach rental, I have a certain expectations. There should be remotes for the five televisions, two VCRs and four DVD players that actually work.

I'm just getting started.

There are two management components to investment property that every investor must keep in mind: the investor track and the management company track.

Under the investor track, the individual investor has certain responsibilities, such as providing the furnishings and keeping the property in generally good order. This includes the paint, carpet and decking.

The property management track keeps the property in daily working order for all the visitors who pay to stay in the home.

First, let's deal with the investor track. A vacation rental can be a cash cow if you set it up right. Purchase with enough cash down so that the rents coming in not only pay your monthly costs -- mortgage, insurance and property management fees -- but leave enough cash at the end of the month to save up for maintenance and upgrades of the unit through the years.

When investing in vacation rentals, keep in mind it's as if you're setting up your own little hotel. The rental not only includes the dwelling, but also all the stuff -- furniture, linens, kitchen utensils, and items needed on a daily basis. It also includes the niceties -- DVD players, hot tubs, bicycles and gas grills.

In residential investing, you only have to make one renter happy all year. In vacation rentals, depending on the length of the season, you could have dozens you have to satisfy in hopes that they will want to come back again and again.