So can you make money renting your Naples home?
The first question to really ask is: what are your goals? Having an understanding of what your financial and leisure goals are important from the beginning. That helps set the stage on weather you are trying to do this for consistent extra income, cover the costs of your mortgage. Or are your goals just to offset your annual costs associated with your Naples vacation property by renting out during the season.
The first question to ask yourself is: what are my goals ? It is very important to be clear about what you want to accomplish because, after all, this is a major investment. Let’s use this example: “I want to use my vacation home about one month a year plus several weekends. I want the rental income to cover my annual costs except for my mortgage. In seven years I plan on retiring to my vacation home.
Other important questions to ask would be: when do you want to use it? Seems silly right, but in Naples a bulk of our visitors who are willing to spend top dollar come during the fall and Winter months. If your plans of visiting coincide with sessional spikes you might not generate the same kind of revenue.
But if your plans are to enjoy the house during off-peak season, you have the opportunity to not only enjoy the premium for renting it out during season, but the enjoyment of using it on a regular basis.
Before deciding to purchase a vacation property you should add up the fixed costs of owning the property. Knowing this will help establish if you can afford to purchase the property and maintain it if you have little rental activity. Knowing these costs will also help you assess what your rental rates need to be. Also don’t forget that HOA rates never go down.
With the advent of many popular online portals people now have the option to rent their vacation property themselves. Though the downside is everybody else has the same opportunity to do the same thing. This not only creates a lot of demand but it means your property can get lost in the shuffle. Working with an experienced vacation property management company gives you the advantage of experience and a proven marketing system.
Working with a vacation property management company also allows you to segment yourself out form the task of answering phone calls, email inquiries and maintenance issues that arise with having renters. If you are out of state handling any or all of these issues can be a time intensive process. When you work with a local Naples company they have the advantage of taking care of the issues in person, and with reputable personnel that can handle the situation.
The best way to keep your vacationers and renters happy is by having extras and amenities at their disposal. Things like fishing poles, bicycles, kayaks, wireless internet and modern appliances can keep them coming year after year. Our family has rented the same condo on the beach for the last 15 years because of these added features. Having these available helps visitors and their family create strong bonds to your vacation home.
Your tax situation is unique. We encourage your to seek the professional advice of an accountant or CPA before purchasing a vacation property. Depending on your unique situation, you may find that a rental vacation home is an advantage. Your tax professional can also advise you on how to properly structure your purchase.
If you’re planning on maximizing your home’s rental income, schedule a consultation with us! We can help you navigate the waters of finding, researching, buying, and renting your new vacation home. We manage homes in some of the nicest neighborhoods in Naples.