I have an opportunity to purchase a 2 bedroom 2 bath condo down in Naples FL from a friend. Listed for 180k currently, I haven't asked specifically on a price but am estimating around 150k for planning purposes. I currently own three properties (VA, NM, and MS) that are all annual rentals (I'm in the military and purchase wherever I go).
I'm trying to figure out if it would be better to hold as a seasonal rental or annual rental. My plan (right now) is to contact a property management company and ask them some questions since they know the local area but I was wondering if anyone on BiggerPockets had any advice.
Kyle - I too own a vacation rental in Naples. We have only rented it seasonally (with great success) so that we can use it ourselves in other months. From a cash flow perspective, annual would be the way to go.
Hi Kyle. I own vacation rentals in North Carolina and would be happy to talk with you about my experiences. I think that your idea of speaking with a local property manager is a good one since the local market is very important. I would ask them about rental rates, average occupancy rate (year 'round), sales tax rates, their fees, and about any local laws or ordinances affecting vacation rentals. Then I would ask the same questions of at least one other management company. You should also check for any restrictive covenants on the property that would affect your ability to offer short term rentals. Keep in mind that property insurance for vacation rentals is generally much more costly than regular hazard insurance and that additional cost must be factored in to your plan. Also, good vacation rentals often offer amenities like nice linens, coffee and tea,etc. So think about those costs as well....including periodic replacement of all linens,towels, dishes etc due to wear and tear. Hope that helps. Mary hart
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