Buying a Condo for vacation rental in Panama City Beach Fl

18 Replies

Hello we are new to the sight.  We are looking to purchase a condo in Panama City Beach FL.  We will be using this condo as a vacation rental and we are wondering what the overall thoughts are on this area.  Also, do we need to have a license to rent out the condo if we hire a property management company?  Thoughts anyone?

Thanks in Advance

Chris

I am getting mixed answers as to whether or not I have to register as an agent in Florida even though I will be hiring a property management company to oversee the property for us.  We know the condo has to be registered with the city.  Any thoughts on this?

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Hi there!  I'm a Realtor in Panama City/PC Beach, and I can tell you business is BOOMING here!  Due to the recent hurricane in PC and east of here (Mexico Beach, etc.), condos on PCB have been fully occupied, whether with vacationers or contractors in the area to do work.  If you'd like more info, please let me know how I can help!

I think depending on  a few posts from anonymous people on this site you just joined is a gigantic mistake.  Especially when they are person who might be looking for a commission.

there are 50 issues that can impact this decision. Are you doing it remotely? Do you have experience doing it? Are you depending on  property manager and cleaner who may or may not work out leaving you in the lurch? Will the property be in a homeowners association that may not allow it? Is specific zoning in that area subject to change? How do you plan to finance it? Do you have a CPA and a lawyer who can guide you in not make a gigantic mistake?

try to avoid starting out with a deer in the Headlights approach.



Originally posted by @Chris Paumen :

Hello we are new to the sight.  We are looking to purchase a condo in Panama City Beach FL.  We will be using this condo as a vacation rental and we are wondering what the overall thoughts are on this area.  Also, do we need to have a license to rent out the condo if we hire a property management company?  Thoughts anyone?

Thanks in Advance

Chris

@Chris Paumen The above ^^^ post is spot on.  You learn how to crawl before you learn how to walk.  You learn how to walk before you learn how to play football.

You're trying to play football.

Running a LTR is like crawling.  Anyone with half a brain can run a LTR.

You need to learn how to walk first. What is walking, in the context we are discussing? That would be self managing an STR in your own market. Preferably less than 10 minutes from where you live. Why 10 minutes? Because you would be running the show. You'd do the furnishing, setting up utilities and some schedule for lawn care. You'd promote it, and rent it out. After the first rental, you'd do what needs to be done for cleaning, restocking and any repairs. When you have those skills down pat, sell the property in your market and use the money for the Panama City Beach condo. It'll also be a learning experience. You might decide it's not your cup of tea.

My wife quit her job as the office manager of a law firm. She had a 4.0 in college. What does she do? She cleans our STR houses. We make more money from houses than she made at the law office. I can't rent them out until they are cleaned and restocked. 23 STRs, 37 bathrooms, 83 beds; the furthest is 7 minutes from home. My renters are refinery contractors; e.g. welders, pipefitters, boilermakers and the like. It's our cup of tea.

We owned a 70 unit community in PCB up until late 2017.  My understanding is that there is still a lot of down product form the hurricane much of which has been delayed but, will be built back up.  Like @January Johnson said, the PCB area and its condos are doing really well having been less effected than parts of panama city.

I'd just mention that you'll want to be cautious on the rents side as you look forward.. when the damage communities do come back online months/years ahead it will likely put some downward pressure on rents.   

@Chris Paumen , you are off to the right start pursuing local guidance to give you a better lay of the land.

@Chris Paumen PCB is a good area to invest as far as short term rentals. However, if you are not in some way tied to Panama City Beach in particular, I would strongly suggest that you consider the entire Emerald Coast/Panhandle of Florida before selecting a property to purchase. I'm in Fort Walton Beach/Destin. This is an hour west of PCB. I own and manage (and sell) vacation rentals in this area. I chose this area over PCB on purpose. Nothing against PCB, but again do your broader research. If you have any questions, feel free to message me. Overall, the Emerald Coast (including PCB) is a very popular STR area.

 @Alan Grobmeier , @Crystal Chaillou ,  @Chris Pauman, and @Marc Jackson -  you DO need to register with the County Clerk and pay your occupancy taxes, so in that respect, you DO need to have a "license".  I'm not sure what the proper terminology is (license, registration, etc.) - but you DO need to have it.  

http://www.pcbgov.com/doing-business

http://baycoclerk.com/other-services/tourist-development-tax/

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