Rental market in Naples, FL for investment

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Rental market in Naples, FL for investment

Nathalie T.
Investor · Naples, FL · Member since 2020 · 1 post · 0 votes

Hi everyone,

Recently moved to Naples FL, and after one weekend enjoying the pool and the beach, we couldn't help it: we started to think about real estate. We would like to buy a single family or townhouse in Naples' region as a primary residence for now, keeping in mind that life can change and that this property may be turned into a STR or an annual rental. Looking at the current listings for rent online, it looks like the market is unbelievably juicy. I see 3 or 4bed townhomes charging $12,000/m for STR, but the same could go for $6,000 annual. Are these prices realistic or listed by dreamers? There's a high competition on the rental market, can these listings really go for this kind of rent? Obviously, the demand is fuelled by the pandemic and work from home effect, how was the rental market pre-pandemic?

What are the locations/ communities around that could both be pleasant at a primary home and a smart rental investment (HOA rental policy, rent,...)

It's a lot of questions, and we actually would love to talk and meet other investors in the region.

Thanks!

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  • Stetson MillerBusiness Member
    Real Estate Broker · Fort Myers, FL · Member since 2019 · 576 posts · 423 votes
    4y

    Hi @Nathalie T.,

    Probably the most important thing to stress is that you're seeing the tail end of seasonal pricing with current available listings, so it certainly doesn't look like that year-round. Most of the time, seasonal rentals see those types of numbers in the October-March timeframe, sometimes carrying into April and early May

    After the busy season passes, it can be difficult to get tenants in place for 6 months of the year until the next busy season starts up. This is the time when it would be ideal to use for yourself or allow friends/family to use it, or weekly/daily rentals if you're in an area that allows it

    To answer your question about that pricing being realistic, $12,000 seems a bit high, but for peak busy season, it's not uncommon for properties listed in the $6,000-10,000 range be rented almost immediately upon the listing going live. Specifically for the 3-6 month seasonal rentals, this has been an established market in Florida for years that really wasn't hugely impacted by pandemic demand, although pricing did increase

    Outside of Naples, Cape Coral is another area where you have the opportunity to operate as a true STR with daily and weekly rentals, which you wouldn't have the opportunity to do if you were within the city limits of Naples, or if you were within ANY HOA restricted community locally

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  • Robert Alpizar
    Real Estate Broker · Naples, FL · Member since 2018 · 40 posts · 24 votes
    4y
    Quote from @Nathalie T.:

    Hi everyone,

    Recently moved to Naples FL, and after one weekend enjoying the pool and the beach, we couldn't help it: we started to think about real estate. We would like to buy a single family or townhouse in Naples' region as a primary residence for now, keeping in mind that life can change and that this property may be turned into a STR or an annual rental. Looking at the current listings for rent online, it looks like the market is unbelievably juicy. I see 3 or 4bed townhomes charging $12,000/m for STR, but the same could go for $6,000 annual. Are these prices realistic or listed by dreamers? There's a high competition on the rental market, can these listings really go for this kind of rent? Obviously, the demand is fuelled by the pandemic and work from home effect, how was the rental market pre-pandemic?

    What are the locations/ communities around that could both be pleasant at a primary home and a smart rental investment (HOA rental policy, rent,...)

    It's a lot of questions, and we actually would love to talk and meet other investors in the region.

    Thanks!

    @Nathalie T.

    Hi! @Stetson Miller pretty much covered it all... As a broker and property manager in Naples, I'd like to add that we see peak season Jan-April... all of the seasonal properties we manage are booked nearly a year in advance. (Rates are higher than off season rates Oct-Dec as well but really peak Jan-April.) On the off season, we have done pretty well finding short term rentals (30 Days- 6 Months) as there are a lot of people in between homes in our market whether they are waiting for a home to be built or moving into town and want tor ent short term before they buy. Traveling nurses are also a common theme we are seeing with our off season rentals. When you say short term rentals, do you mean weekly airBNB style rentals? If so, you'll want to look at properties outside of an HOA and outside of Naples City limits which is a small area near downtown Naples, mostly West of 41. 30 Day rentals are allowed nearly anywhere in Naples... some great communities to consider depending on your Price Point is Palm River (I live here), Naples Park (AirBNB Heavy Neighborhood), Bonita Shores, Bayshore Arts District, Lakewood.

    Regarding the $12,000 rental rates... it really depends on the area and property. I've done $45,000/Month rentals for homes in Olde Naples and at the same time $3,000/Month for a run down 2/2 condo further from the beach. But yes, seasonal rates and demand here are very high. As you've experienced, Naples has A LOT to offer... numerous top rated beaches, tons of shopping, dining and entertainment. Hope this helps! :)

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