Are you considering a vacation home purchase that will produce valuable rental income when you’re not using the property? There are many homes for sale on Siesta Key, Lido Key, Longboat Key, Sarasota, Anna Maria Island, Bradenton and beyond that may be ideal for investment. Before you make the decision buy, there are some dos and don’ts to get the most out of your financial investment.
DO: Create a solid financial plan. This will help you predict the potential revenue and expense of owning a rental property.
DO: Work with a knowledgeable Realtor who knows the ins and outs of Sarasota real estate when buying. Beyond the property, it’s important to be familiar with the lifestyle of a particular neighborhood. east Manatee County offers a far different experience then somewhere on a barrier island. A good agent can help you find a property in a good location with the best rental potential.
DO: Get to know the investment home as much as possible. Carefully check all parts of the home and repair and replace items that need it. A vacation rental is going to see a good amount of wear and tear. Be sure to make smart updates where and when it needs it.
DO: Choose a property manager carefully. Find out who’s managing other homes in your neighborhood. A good Realtor can recommend a qualified management company. Check their reputation in the area, then ask how they’ll maintain the home so it stays in good condition, communicate with you, and maximize your revenue.
DO: Get professional photography. If you want to effectively advertise your vacation rental, high quality photography is pivotal to reaching a high occupancy rate.
DON’T: Ignore preventive maintenance. It’s better to fix or replace that aging water heater or HVAC system now than have it break during a renter’s stay. Homes on the barrier islands are especially sensitive to the environmental factors such as salt, wind, and water. Be sure to take that into account.
DO: Be strategic about using the home yourself. If your goal is to maximize rental income, stick to planning your stay off-season, during the summer months. Fortunately, the Sarasota area is a desirable year-round destination. Staying here in the summer means warm Gulf waters, ice cream trips, and less traffic – perfect for spending more time on the sand.
DO: Plan to reinvest in the home. Figure you may have to spend 1% of the property value each year on maintenance.
DO: Review your listing monthly. Whether your home is listed with VRBO, AirBNB, or a local rental brokerage, be sure to review your listing at least once a month. You may find errors, address issues, need to update rates and find other elements that are not showing up correctly.
DO: Be realistic about pricing. Research area rental rates and don’t overprice. Your ultimate goal is to make a reasonable profit and that will require a high occupancy rate.
If you are interested in finding a vacation rental or investment home for sale in Sarasota or Manatee counties, contact me.
Sources: floridarealtors.org, entrepreneur.com, sfgate.com, Morris Invest, blogs.netintegrity.net