Posted on Tuesday, September 15th, 2015

How to Make Your Naples Vacation Home Pay For Itself

Can you make money renting your Naples home?

The first question to really ask is: what are your goals? Having an understanding of your financial and leisure goals is important from the beginning. It helps clarify whether you are doing this for consistent extra income,  to cover the costs of your mortgage, or to offset the annual costs associated with your Naples vacation property by renting it during the season.

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.”

An important question to ask would be: when do you want to use it? Seems silly, right? However, most of our Naples visitors who are willing to spend top dollar come during the fall and winter months. If you plan to visit during this time, you might not generate the same kind of revenue.

If your plans are to enjoy the house during the 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 yourself on a regular basis.

Add up the costs

Before deciding to purchase a vacation property you should add up the fixed costs of owning the property. This information will help establish if you can afford to purchase the property and maintain it if you have little rental activity. It will also help you assess what your rental rates need to be. Also, don’t forget that HOA rates never go down.

Hire a rental agency?

With the advent of many popular online portals, people now have the option to rent their vacation property themselves. The downside is everybody else has the same opportunity to do the same thing. This not only creates a lot of demand, but it also 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 means you don’t have to answer phone calls and email inquiries, and deal with 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 property management company they take care of the issues in person, and with reputable personnel that can handle the situation.

Don’t forget the perks

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.

Tax advantages?

Your tax situation is unique. We encourage you 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.

Conclusion

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.

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