Buying a vacation rental home can be tedious, especially if it’s your first time. Rental vacation homes aren’t necessarily the same as investing in real estate. Vacation rentals can provide high income, but most of the time, it’s seasonally based and requires high maintenance. In addition, investing in vacation rental homes, especially in a state like Florida, requires some expertise. This article takes you through a series of simplified steps to ease this hassle. Read on to learn more about buying and making money from a vacation rental in Florida.
Do Your Research
This is one of the essential things to do before buying a vacation rental. To put it in simple terms, do your homework. Well, there are plenty of homes in Florida for rent, and you need to get the very best. Conduct research concerning the kind of rental home you want to purchase and the location.
For example, do you want it on the shore or the mountains, in town or the quiet suburbs? The area is critical because it will also determine the type and number of clients you will get. This, in the end, translates to the amount of revenue you’ll make.
Pay a great deal of attention to the weather in the area, the proximity to social amenities, the market conditions, the demand rate, and other factors that are likely to influence your clients. Unfortunately, many vacation rental buyers forget that these differ from residential homes.
The million-dollar questions you need to ask yourself when you want to buy a vacation rental are;
- What will attract people to a vacation at this place?
- How will the high and low seasons affect the revenue?
- Will people like to take a vacation in this area?
Estimate the Expected Expenses and Income
The expected income is expected to be more than the expenses. However, this might not be the case in the beginning due to the high costs of beautifying and advertising. Therefore, the expected future income should rise compared to the expenditure.
To estimate the income, you need to examine the vacation rentals in the area to know about the costs. This will help you estimate the costs incurred running your property and the average expected income you will make. There are different expenses to be incurred when running a vocational rental property in Florida. These may include, but are not limited to the following:
- Licensing fees
- Property taxes
- Property insurance
- Rental income taxes
- Occupancy taxes
- Management fees (if you are going to hire a property manager)
- Financing costs
The State of Florida, through DBPR (Department of Business and Professional Regulation), dictates that all vacation rentals should hold a valid license and any other permit that is deemed necessary.
Buy and Beautify the Vacation Rental
After researching and calculating the finances, it’s time to buy the vacation rental in Florida that you have settled for. However, furnishing the rental is then the next thing to do. It will help if you put a lot of effort into making the rental as comfortable and relaxing for your guests as possible. Remember, the small details you might overlook matter and contribute to the overall appearance of the rental. Don’t forget people are willing to pay more if the quality is worth it. The trick to decorating a vacation rental is to settle for plain colors, as this will accommodate all types of guests and help save you some funds.
Advertise Your Vacation Rental
Advertising your property makes sure that you get to reach the target audience. There are different property sites where you can list your rental property. Some of the websites include:
- Airbnb sites
- VRBO, HomeAway and VacationRentals.com
- Rent Like a Champion
You can also create your website for vacation rentals. Another advertisement channel is the use of Google ads. Ensure you use high-quality pictures for the advertisements, and don’t forget to add a property description. You should also include the charges if possible.
Giving your guests a tour when they check in helps ensure they are familiar with the premises. This will also create a good rapport with the client and increase the chances of the client returning or recommending your place to friends.
Maximize Your Income
Depending on the period of stay, different guests in Florida vacation rentals pay different amounts. Therefore, learning to maximize your income and minimize expenses is the last and most important thing to consider. The goal is to make money from your vacation rentals in Florida.
One of the ways to do this is by avoiding penalties and fines. Ensure this by making sure you get all the necessary permits and licenses. Charging considerable amounts from your clients (don’t overcharge as this will scare away clients, and don’t undercharge as this will lead to losses on your end) is also another way of maximizing your income.
Florida is a major tourist destination, and buying a vacation rental to make money from it is a good investment decision. So, follow the outlined steps above and embark on your journey of being a vacation rental owner in Florida.