Rental Homes ~ A good investment for YOU?

Everyone is looking for that great deal! That special investment that brings in profit with minimal cash drain. Sure, the rental market is booming in SW FL, whether renting to snowbirds or vacation rentals homes are always in demand. But granted we are not all investment pros so there's a few things to keep in mind when looking for an investment property here in SW FL. First of all, you have to decide if you want to invest in an ANNUAL RENTAL, VACATION RENTAL, or a SEASONAL RENTAL.

An Annual Rental poses specific problems but gives the landlord some benefits that the other rental scenarios do not. Please be aware of all the rental laws, Federal AND state before getting in to this venture. Keep in mind you are letting people in your home that will need to maintain it and pay the rent, so it is important to do your due diligence. Require applications and run credit checks. You can charge the individual an application fee for this purpose. If your rental home is in a community that has condominium rules or an HOA, you will need to provide the Community Management Office the specifics of the rental. Many times the applicant will need to be approved by the Association separately from your credit check, and therefore a separate fee will be charged. It is always recommended (and could be required by Associations) to have a signed lease with your renter. This is to prevent any misinterpretation on who is going to provide what, for instance, will you as a landlord pay for Pest Control? Lawn Maintenance? Cable? Water? Those questions are easily spelled out in the lease. It is also recommended that you collect a security deposit of one month's rent. You may also collect the last month's rent up front as well. The benefit of an Annual Rental for the landlord is that it provides security that the property is rented for 12 months at least, and not sitting vacant for extended periods of time. You also do not have to furnish the home as annual renters typically bring their own household goods. Know your rights as a landlord and know the rights of your tenant!! This is very important. If you are unsure that you want to take on this responsibility (especially if you are out of state yourself) it's best to hire a Property Management company to manage your rental locally. My brokerage can assist with this and answer any questions you may have.

Vacation Rentals are very popular in SW Florida. Millions of people come to Florida every year for their summer or winter vacations. Vacation Rentals are typically weekly rentals, but can be daily as well. If your condo or home is in an Association ( Condo or HOA) there will be rental rules that apply, typically limitations of the number of rentals you may have per year. Some Associations allow 365 rental days which allows you to rent one night at a time if you wish. Others may restrict your rentals to maybe 30 days or even 60 days. If you are going to purchase a home or condo for vacation rentals and the property is governed by Condo Regulation or an HOA, know the rental limitation in that community before buying! Managing a vacation rental can be problematic. You will need to be able to track the days/weeks that the property is rented. Usually vacation rental home owners use software or a company to manage their bookings. Homeaway and AirBNB are two companies that provide this service for a charge. Renters can book directly from their sites and the booking company then pays you. This can get pricey, if you can manage your own bookings by advertising on free sites or Craigslist you can save a lot of money. Vacation rental homes are furnished and usually have desirable amenities for the vacationer, such as boating access, pools and spas, four or more bedrooms, accommodations for children, bikes, fishing gear, pool tables, etc. The landlord also pays for the cable and the water, but can charge the renter for electricity. Other charges include security deposit, taxes, and cleaning charge. Typically the payments are up front, so credit checks are not necessary. Many investors like this type of rental if they plan on using the property for themselves or their families. The downside is that the property may go unrented for weeks at a time, especially in the summer.

Seasonal Rentals are also very popular in Florida. You can do strictly seasonal rentals in the peak months, and do vacation rentals in the summer. Most home owners do both. Seasonal rentals run from January to April, three or four months. Some renters will rent from November or December, but the busiest months are February to March, during the baseball Spring Training since there are two stadiums in the area. The rules for Seasonal Rentals correspond very closely to the Vacation Rentals, and are managed basically the same way. You can charge your renter monthly or have them pay all costs up front.

Investment opportunities here in SW FL make for great cash flow and tax write offs if you have the right property. There is always a risk of getting over your head if the maintenance, taxes (non homestead), and unrented weeks put you in the "red" for real, and not just on paper! Let us help you with your investment purchase, we can locate and negotiate the best deal possible so that YOU can reap the benefits of your investment for the long haul.

Call us now, 239 297 6493 and let's start looking!