Renovate STR Now or Wait Until Slow Season?

Question

Hello BP,

I close on a property that will be a STR at the beginning of April in Jacksonville Beach, FL. The main house (3/1.5) does not need much rehab to get it up and running. There is an addition that I will be converting to its own 1/1 unit. The extent of the rehab is the following: adding a bathroom, moving HVAC, removing a few walls, and more. After speaking with a few GC's, the project could take "a couple of months." I am estimating it could take six months to finish everything due to permitting, etc. So the rehab would be completed in say October...at the start of the slower season. The peak season in north FL is the summer months, May-September, and transitions to a slow period for a few months. I typically like to get things done asap but then I could be missing out on returns during the summer.
PS: I am using a conventional loan (second home loan) on this deal.

Question: Should I start the rehab as soon as I close on the property and get it done asap OR do I wait until the slow season to rehab?

Mel Adams · Answer

If the condition it’s in now stacks up with other STRs in your area I’d wait.

On the other hand, if it’s going to look the most outdated or lack amenities compared to your competition, either price it appropriately or rehab it now.

Zeona McIntyre · Answer

We own in Panama City Beach and it's DEAD from November until March outside of Thanksgiving and Xmas. I would wait. Even if your area is different, it will be slower because less people have vacation time then. Plus really good decor can make a place feel more updated than it is. I'm seen stagers work magic.

Zeona McIntyre · Answer

Hey Ashton, I can connect you to a team who does.

Ashton Fry · Answer

@Zeona McIntyre Do you have any suggestions for staggers in the area? Do you use a stagger or do you stage yourself?

@Wally Burbage That is a good suggestion! Thank you.

Wally Burbage · Answer

Our properties are in Southwest FL and are doing our upgrades in September, during hurricane season.

Ashton Fry · Answer

@Jack Bobeck Understood. Thank you for this info! Being out of state, I appreciate the feedback. I know permit process can take a few months so I will start the process when I close and then reno once I have the permits.

Jack Bobeck · Answer

Hey @Ashton Fry NC beaches are not NE FL beaches. For instance, you have FL/GA, the Thanksgiving weekend at Pete's, We have had weekends of music at the bandshell in jax beach. FL is a destination state, we also have Mayo Clinic, ranked the #61 hospital in the world out of 2200 hospitals. We stay busy at the beaches area. There are no slow times anymore in the beaches area.

Ashton Fry · Answer

@Jack Bobeck Thats an interesting point. Being from NC and growing up in at NC beaches, there is a slow season from Oct-April typically. Since this is Northern FL, I assumed that STR would slow during a similar time frame.

So you are saying that you do not see any difference in tourist throughout the year? It would be ideal to start this reno asap and knock it out by July/Aug but I am hesitant it would get delayed and miss out on the "higher" revenue months. This gives me something to think about.

Jack Bobeck · Answer

Hey @Ashton Fry, there is NO SLOW season at the beach.

Ashton Fry · Answer

Thank you for the insight. I plan to wait until the slow season to renovate. The condition of the property is a slightly outdated compared to others so I will have to adjust rates accordingly.

Renovate STR Now or Wait Until Slow Season?

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