Average property books most months of the year
A property with no rental restrictions allows us to offer nightly rentals, so typically we have 20 to 34 leases per year and an occupancy rate between 30 – 37%. When accommodating nightly and weekly rentals, our owners have had guests 10 – 12 months out of the year. On average, our guests stayed 6.5 nights. Rarely do we get guests staying less than 2 nights.
On the contrary, if a property is limited by a minimum 30-day rental restriction, one should expect revenue only 3, possibly 4 months out of the year and generally only during peak season. Occasionally, we might get an extra month out of off-season, but the demand for people wanting to stay for a whole month or more from April to early-December is very low.
Rates vary dramatically by season and by other factors including quality and size of accommodations, distance to the beach, and distance popular local amenities and attractions.
Example: For a 7-night stay during low season, a guest paid $2,166.29 including all taxes and fees for a newer, 3-bedroom, 2-bath, 1800-sf pool home within walking distance to the beach. During peak season, that same house for the same 7-night stay brought in $5,056.59.
* Rates reflected are the total amount paid by the guest and include all taxes, accidental damage insurance, and cleaning fees. Rates are based upon actual results in our Neapolitan Vacation Home shown on our website.
In the year ending June 30, 2014, 62% of revenue came from peak season, leaving 38% coming from low.
We offer commission-based programs and fixed-income programs.
For the commission-based program, our commission rate varies based upon length of stay, anticipated owner’s own use of the unit, owner’s willingness to share in third-party advertising costs, whether the unit is adequately furnished, how much property maintenance is required, etc.
The fixed-income program is an option through which we provide a steady, monthly income for your use. Our organization will absorb any fluctuation in monthly income.
It’s smart to consider not only the costs but also the opportunity we offer as well as the broad scope of services we provide.
By law, rentals less than 180 days must be charged sales & use tax as well as a tourist tax. 6% sales and use tax and 4% tourist tax are charged to the guest and paid respectively to the Florida Department of Revenue and to the Collier County Tax Collector.
Naples Florida Vacation Homes handles the registration of the unit, collection of tax, and monthly reporting and payment of taxes to authorities. We take all of that hassle off your shoulders.
Our popular Neapolitan Vacation Home earned $12,000 rent in February and $13,000 in March 2014. In the MLS, realtors are advertising comparable homes in the same neighborhood for $5,500 – $6,000/month for high season. Ask yourself, “Why would people pay double??”
$12,000 / 30 nights = $400/night. One hotel room in Naples in February easily exceeds that nightly rate. Our guests are delighted when they can rent a whole house or condo for the price of a single hotel room.
Remember also, the market for monthly stays is limited to January through March. Because we cater to shorter term rentals, we just added 40% to our annual income by drawing in those folks wanting to book shorter stays (typically weeklies or long weekends) in Naples during off season.
The first consideration for you is what restrictions you have.
If you are not bound by a 30-day minimum, we encourage you to let vacationers determine how long they will stay. With our program, the vacationer pays for all of the expense of cleaning and maintenance.
Naples Florida Vacation Homes handles all of the work, so why not rent by the week or even by the night?
We know our business and recognize that not all homeowners are comfortable with a variable revenue stream. We will gladly take a look at your property at no obligation and provide a proposal for a fixed revenue stream.
This arrangement would be much like renting to an annual tenant, except you are dealing with a sound, professional company. We will pay all utilities, periodic and minor maintenance costs, advertising costs, etc. We will pay you a fixed net amount every month with the rights to operate your unit as a vacation rental.