When you browse vacation rentals for sale in Florida, what you are seeing are residential homes that have been leveraged as a lucrative investment. The demand for condominiums and single-family or multi-family luxury vacation villas in Florida is ongoing, with guests booking from across the United States, Canada and the United Kingdom.
With the right vacation rental management, your investment property could be booked to capacity, 52 weeks a year. Not only does the rental income cover the cost of ownership, including mortgage, property taxes and utilities, but it provides a lucrative profit margin for owners. And if the property is located in a peak demand area, investors can also realize capital gains, as the properties appreciate in value, making it one of the best and most secure financial investments in today’s economy; with significant tax advantages.
Ready to learn how you can capitalize on this investment and income opportunity? We’ll explain the key strategic factors to consider, and how to establish your own vacation rental home business.
Where to Buy Rental Property
Finding the right rental property means doing some research on the peak demand vacation areas. Florida remains one of the most popular vacation destinations, thanks to the biodiversity, temperate seasonal weather, theme parks and entertainment venues, and of course the beautiful ocean and white sand beaches.
The five most in-demand locations and destinations for domestic and international vacationers in Florida are located in:
- Panama City, Florida
- Kissimmee, Florida
- Key West, Florida
- Lakeland, Florida
- Orlando, Florida
Gated communities offer the most security for traveling families, particularly resort style residential developments that offer onsite amenities such as a large pool, club house, games room and activities like beach volleyball, picnic sites, cabanas and food and beverage services.
How Much Can I Rent My House For?
When you have decided to take the next step, and try renting your vacation home in Florida, or if you are considering investing in vacation rentals, you want to make sure that you will charge the right competitive rate. The stakes are high because if the cost of your rental is too low, you may attract the wrong kind of short-term guests. If the rental rate for your condominium, Florida beach front property or gated community home is too high, you will miss out on vacation bookings and the revenue you want to earn.
The rate that homeowners can charge for vacation rentals varies depending on a number of factors, including the size of the home, amenities (such as a pool and lanai), the number of bedrooms and bathrooms, and the overall décor and aesthetic of the property.
Some concessions for guests like free Wi-Fi, local and long-distance calling (Canada / USA / Mexico / UK) are a big draw, as is the proximity of your vacation property to theme parks, shopping, restaurants and other entertainment necessities. Try this free rental estimation tool, to learn more about these parameters and to determine the market rental rate for your property.
The Advantages of Vacation Rental Management
The business and revenue scope of vacation rentals is changing; the market is still very lucrative in many locations across the United States, but specifically Florida, which is recognized internationally as a premier destination for family vacationers.
Because of the demand and revenue potential of renting a Florida vacation home, competition has also escalated, and rental homeowners must provide a seamless booking experience, including professional pictures, site maintenance and five-star hotel amenities. This helps to not only ensure that your guests have a quality vacation, but it increases the likelihood of personal referrals to family and friends and repeat rental bookings.
If you are an out of state investor, having a local vocational rental management team to assist you is key. Not only can rental management teams help vet (and eliminate) the wrong kind of short-term renter, but they can help by connecting you to valuable cost-effective services, like maintenance, security checks and cleaning services.
Speak to a local real estate and vacation home rental expert, before you buy, for valuable competitive insights to help you select the right property and competitive seasonal rental rates for your business opportunity.