This part of the website is all about buying property rentals in Florida. If you are looking for a vacation home to rent near Disney visit our Orlando rental pages by clicking on the image on the right.
Buying property rentals in Florida
Rental properties in Florida can offer investors a steady income. That is IF they buy the right property, in the right location at the right price.
Understanding what you want from a rental property is key to making a good decision.. Unfortunately many people make the wrong decision because they did not fully understand what they needed the property to achieve.
If you want to USE A PROPERTY yourself (friends and family) and rent it out when not in use, then you are going to be looking at a seasonal or short term rental property.
If you do NOT WANT TO USE A PROPERTY yourself then you will most likely be looking for an annual rental property.
The Nitty Gritty of Rentals
Typically the total income from a long term rental and a short term rentals are rarely more than 1-2 % apart. The difference comes with the amount of effort or work you are willing to put into the properties.
Annual rentals are typically rented without furniture. The management fees will typically be lower (on a cash basis, not necessarily a percentage one) and the tenants pays the utility bills.
Seasonal rental properties will need to be furnished and you will have to pay the utility costs. The management company will earn a little more money from you as they will be working harder on bookings, cleaning etc.
Short term rentals work in a similar fashion to hotels. Your property is rented out on a daily, weekly or monthly basis. Rental restrictions apply in many areas, so be sure to confirm with your realtor as to what is allowed. The property will need to be completely furnished – normally to a high standard. You will be liable for all utilities, annual management charges, cleaning and booking fees. Plus you will need to collect and pay tourist taxes on your rentals.
The common denominator
The 3 options above all have one common denominator regarding future profit. If you buy well, you will be in a position to sell well. Meaning that if you buy the right property, the right floor plan for the market, the right location and buy at the right price, you will be in the best possible position to sell your property in the future.
Too many people have bought properties based on price alone.
Just because something is cheap, does not make it a bargain.
In recent years we have seen ‘investors’ buying very inexpensive properties across the U.S, sometimes for only $30-40,000 dollars. The rental incomes have been purported to be upwards of 15% after costs and this looks great. But, what will happen when these investors wish to move on and sell their property? Many of them will not be able to, because they bought based solely on price and may have needed to invest thousands of dollars more into the property in order to keep it habitable and rent-able.
We envisage many investors selling these investment properties at the same price they purchased at, or even less in some markets.
Surely it is wiser to invest in a property which generates a steady rental income and at the same time, a property which will grow in value and be a saleable piece of real estate in the future?
Ask yourself the following questions:
Why do I wish to buy a property?
What does the property need to achieve?
What are my rental income expectations?
If I need to sell the property quickly, will I be able to?
Can I afford to buy the property for cash or do I need a mortgage loan?
Am I looking to buy a property now, in a few months time or in a years time?
Properties for sale now are unlikely to be on the market next year. Do not expect to pay the same for a property in the future as prices will have likely increased. We understand that now might not be the ideal time to buy a property. Unfortunately unless you win the lottery, sell some software to a major player or float your company, the timing will never be ideal.
Your decision to buy always depends on whether or not you can afford to buy a property now.
If you can answer all of the above questions, then perhaps it is time for you to speak to us. Allow our team to find a property which ticks all of your boxes.
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Read more about short term rental properties Read more about long term rental properties