Owning a vacation rental or an annual rental provides several benefits. The most notable are: Consistent passive income, tax benefits, and the potential for large returns with capital appreciation. Additionally, a vacation rental provides a get-away location for you and your family. Annual rentals provide you with a future retirement home, with a tenant paying the bills until you are ready to retire.
The State of Florida defines a vacation or short-term rental stay as 60 days or less. HOA’s (Homeowners’ Associations) and or municipalities decide whether the stay can be daily, weekly, biweekly, or monthly. Annual rentals or long-term is a time period of at least 6 months and 1 day.
Multi-family homes yields a high income and risk diversification. They are, however, rarely available. Ultimately the “best” investment property for you is going to depend on your objectives and goals.
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Location, location, location, is still relevant today! Vacation rentals must be located at or near attractions: Beaches, golf courses, restaurants, and shopping. Having the ability to walk or bike the area makes a difference. With annual rentals you have more fixability, however you do not want to purchase a property that is not located near to towns or schools.
Some municipalities require a license for vacation rentals. The license must be renewed annually. Ascendia will complete and file the license on the owner’s behalf.
That depends on the type of investment property you want to own. Vacation rentals will need to be “turnkey” furnished, from furniture, to silverware to blow dryers, vacation guests will need it all. Ascendia provides an itemized inventory document of the “must haves” for vacation rentals.
Annual tenants typically have all the essentials needed to supply a home. There is also transitional rentals, whereby individuals are seeking to rent a turnkey home for a longer period of time, at least 6 months and a day. Vacation rentals can transition into long term rentals.
Yes, you will need to notify your insurance broker that you will be renting your property.
No, it is not difficult to get financing on an investment property. Typically, it can be more expensive, especially as it relates to interest rates. There are some condo-hotels that mortgage companies do not want to finance. Ascendia has relationships with professional mortgage we can recommend.
A quality property management company will:
- Use multiple software platforms to market and distribute your property nationally and internationally
- Use local knowledge to set the market rent in addition to pricing software that allows property management companies to stay ahead of market adjustments
- Perform and manage maintenance projects
- Have a robust website complete with property photos, virtual tours, drone photos, online reservation, information about the community and a password protected login for guest, tenants and owners.
- Schedule the property to be cleaned and afterwards inspect the property for cleanliness
- Inspect the property for missing or damaged items
- Perform credit and criminal background checks where applicable
- Interface with Homeowners Associations and local municipalities
- Accounting services, monthly statements and filing local taxes
- Inventorying the property before guest arrival to make sure they have all of necessities needed to enjoy their vacation
- Monthly inspections for annual rentals assuring that your property is being respected
Know the local laws and statutes
This is an abbreviated list of what Ascendia Property Management does for their clients.
Now ask yourself: Do you need a property management company?