Manage episode 239110534 series 1316891
Have you ever thought about buying a seasonal rental home in Southwest Florida? There are a number of benefits to doing so—especially if you’ve made a tradition out of vacationing here. I’d like to discuss them with you today.
First of all, owning seasonal rental property is advantageous because it’s an opportunity to lock in a future retirement home. In the meantime, you’ll be able to rent the property out on a daily, weekly, or even short-term basis and create a steady source of income that, in turn, will offset the costs of ownership.
Because property rarely loses its value, you’ll enjoy year-over-year appreciation on your seasonal rental property. In our area, properties are currently appreciating at a yearly rate of 8% to 12%.
Don’t forget the tax incentives! As a rental property owner, you’ll actually have the option to write off travel and maintenance-related costs as business expenses.
Finally and most enticing of all, you’ll have a home away from home that you can use whenever you want.
Benefits aside, there are a few other factors you’ll need to be mindful of. For instance, two-bedroom properties tend to outperform three-bedroom properties, and the property’s quality, location, and amenities will either help or hinder your ability to generate cash flow.
In our area, properties are currently appreciating at a yearly rate of 8% to 12%.
Some desirable amenities include:
- A pool
- Access to bicycles
- High-end furniture
- An updated kitchen
- Close proximity to the beach
- Beach supplies
Now, I’d like to switch gears and highlight some of last year’s numbers as it concerns our local rental market.
Naples, Marco, and Bonita Springs
- Occupancy rate: 80% for six months of the year
- Average stay during high season: 10 days
- Average daily rate during high season: $232
- Average stay during low season: six days
- Average daily rate during low season: $128
Fort Myers, Cape Coral, Estero, and Sanibel Island
- Occupancy rate: Over 90% during the winter months
- Average stay during high season: nine to 10 days
- Average daily rate during high season: $184
- Average stay during low season: five to six days
- Average daily rate during low season: $123
If you have any further questions about the long list of benefits associated with purchasing seasonal rental property or about our local rental market here in Southwest Florida, feel free to contact Faye directly at Faye@LeugersGroup.com or you can visit us online at SearchFloridaGulfHomes.com. We hope to hear from you soon!