Thinking of renting out your beach home in Pinellas, Hillsborough, or Pasco? With websites like Airbnb, HomeAway, and VRBO, it is now easier to market vacation homes to renters around the country, or even beyond.
However, before you do put up your home for rent, it’s best to make the right preparations and ensure you’re ready.
Here are a few things you need to know:
- Is it financially rewarding?
Rental income can mean cash in your pocket that you can use in paying off your mortgage or for the upkeep of the house. But first, you have to review your potential income against the costs of running a rental. Find out how much rent you can realistically charge based on the current rates in the area. Then estimate your expenses, including maintenance, utilities, supplies, amenities, and others.
- Who are your target renters?
Who are you comfortable renting out your beach home to? Do you have restrictions when it comes to age, pets, smoking, or drinking? Rental websites allow you to set limitations for your customers. Keep in mind, though, that the less restrictions you have, the more renters you’ll attract.
- What amenities should you have?
Most renters expect connectivity features, including WiFi, smart and cable TV, and similar amenities. Entertainment or recreation options like a spa, pool table, or perhaps a small grill can make your listing more attractive to renters.
Provide ample grooming supplies and toiletries, as well as cleaning materials. Cooking implements should also be provided if you allow guests to cook in the house. Other essentials are plates, glasses, and eating utensils. It’s wise to invest in inexpensive but durable items, as these will be subjected to plenty of wear and tear.
- How often do you plan to use the home yourself?
Plan in advance when you’re using the beach home yourself so you can block off those dates. Likewise, the number of days you spend in the home can have tax implications. If you rent it out for 14 days or less in a year, the rental income you make is tax free. Longer than 14 days, you need to report your rental income and pay the corresponding taxes.
- Should you hire a professional manager?
If you live near your beach home, then it might make sense to manage the property yourself. Make sure, however, that you’re prepared to do the job and has the right skills and knowledge about running a rental.
- Cleaning, repairs, and maintenance
- Welcoming guests and providing them with the keys to the home, as well as WiFi passwords, instructions on using the appliances, the use of amenities, and other details
- Making sure toiletries, bedding, towels, and other supplies are adequate
- Responding to guests’ concerns and inquiries
- Managing bookings
- Complying with community rules and regulations on rentals
- Screening tenants
- Maintaining your listing on rental portals
- Maintaining accounting records
The responsibilities involved in managing a rental include:
There is a lot to know when doing your own property rentals. If you’re out of town and don’t feel comfortable doing short term rentals, or simply prefer a hands off approach, it’s best to hire a property manager in the area that can maximize your investment income.
The Ambrosio Team has an extensive portfolio of waterfront rentals in the Tampa Bay area and would be happy to answer any questions you may have. Call us at 777.433.0372 or email to Info(at)WaterfrontTampaBay(dotted)com.