You love vacationing on the beaches of Florida and you’re now thinking of investing in a property here. A beach vacation rental is a great way to have your very own home away from home while making an income at the same time. However, to succeed in this investment, you need to make sure you’re financially prepared and choose the right property.
Consider these tips on buying the vacation rental that’s perfect for you.
- Set a budget
Review your finances thoroughly and determine how much home you can afford. Keep in mind that a second home means added mortgage and upkeep costs. Make sure you’re ready for this. Additionally, be prepared to pay a down payment of at least 20%, which is the standard rate for a secondary property. You will also need a great credit score and low debt-to-income ratio.
After crunching the numbers, set a budget for the home and narrow your property search based on your budget. Avoid the temptation of buying more than you can comfortably afford.
- Decide on the location
Should you buy a beachfront property or one that’s a little farther but have good access to the beach? A home right on the beach offers plenty of perks – you get great views, you can sleep and wake up to the sound of the waves, and the water is just a few steps away. However, waterfront homes are generally much more expensive than other property types.
On the other hand, a home further inland may not be as exciting or prestigious, but it will likely be more affordable. When you invest in a beachfront home, you can rent it out for a higher fee. But because of its price, it may take more time to recoup your investment. With a property further from the shore, you have a better chance of recouping your investment faster.
- Know what renters like
Imagine yourself as a guest and think about the things you’d want to have in a rental. What are your must-haves and the features you will look for first? What would make your stay more enjoyable and comfortable? Are you willing to pay more for extras like a hot tub or a large patio? The answers to these will guide you in preparing and furnishing the property to rent out to guests.
- Know the type of property to buy
Should you buy a single-family home or a condo? Given the same location, condos will typically cost less than a single-family home. Condos also offer the convenience of having a building manager or condo association looking after the upkeep of common areas and maintaining the desirability of the property. You’ll also have the assurance that your property is safe and secure even when you’re away.
In some instances, condo associations also handle rental operations in their building, making it completely hands-free for unit owners.
With a single-family home, much of the responsibility in managing your rental property will fall on you. If you can’t come often, it’s a good idea to hire a property manager who can look after the home in your absence and make sure your guests are welcomed. A property manager can also take care of every aspect of running your rental, from marketing and screening tenants to bookkeeping and tax preparations.
If you’re planning to invest in a Florida vacation home, The Ambrosio Real Estate Team can guide you to the perfect property. Call us today at 777.433.0372 or email Info(at)WaterfrontTampaBay(dotted)com.