A beachfront condo is a significant investment for any individual. If it’s not your primary residence, you may not spend as much time in it as you’d like. There may be value to subleasing it part of the year or as a short-term vacation rental. Here are some ideas to consider before leasing your beach condo.
Condo Rental is a Reliable Source of Revenue
High income renters – those with over $100,000 in “real annual income” made up 29% of the past decade’s renter population. This indicates that there is a market for luxury property rentals, something to consider when marketing your beachfront property for long-term rent.
Vacation rental-by-owner allows you the flexibility to seek income from your property when you’re not using it.
Whether you wish to rent your property short-term, long-term or seasonally, a local real estate professional can assist you in finding rental revenue data for your area. This information can help you decide on the leasing option that best suits your goals.
Costs Associated with Rental Properties
Rental properties in desirable locations like the beach can turn a profit; however, profit is relative to its operating costs.
As with any property, there exists the real costs of property taxes, HOA fees, maintenance and utilities. But when the owner is absent and renting a property on the open market, there exists additional costs of property management, marketing and processing.
Tenant Screening and Policies
If leasing your condo long-term, work with an agency that can assist you in conducting compliant credit reporting and rental history for your prospective tenant. If you’re considering short-term rentals, research vacation rental service providers who can market, book and enforce policies regarding cancellation, damage and incidentals. While it may seem you can manage these tasks more cost-efficiently on your own, services that specialize in short-term rentals have the tools and resources to support you effectively.
Renting is a Real Business
In Florida, if one rents a property for a predetermined period of time, it may qualify as a small business. While there are other things that you have to do, namely you have to work at it regularly. This means you cannot just do some work on the location every now and then. You must regularly either do work yourself, or through a business manager. However, it also means certain fees, like maintenance and marketing, may be tax deductible.
Find a Trusted Partner in the Leasing Business
Done right, leasing one’s condo can be an additional revenue stream, particularly if you work with an experienced real estate professional familiar with the area.
If the condo you’re considering leasing is in the Northwest Florida Panhandle, contact Rodos Advisors powered by eXp to inquire about our services.