If you’ve been thinking of owning your own “happy place” at the beach, but could use a little help offsetting the cost, consider placing it in a vacation rental program. By allowing vacationers to rent your South Walton and Destin beach home in your absence, you can generate income that will help offset the cost of ownership until you decide to make your beach home your full-time residence.
What makes a good vacation rental? You’ve likely heard the adage that the three most important things in real estate are location, location, location. This is especially true when investing in vacation rental properties. Vacation condos should be gulf-front or at least have gulf views. Amenities like swimming pools are also important. Vacation homes should be within walking distance to the beach. Make sure public beach access is available and a dedicated access is even better. You don’t want to have to drive to the beach once your reach your vacation destination, and your renters won’t, either.
In addition, if you're considering buying a Destin beach home or condominium and placing it on a rental progam, only consider real estate purchases where there are other investment and rental properties. You don’t want to be the only rental within a community. If it’s a new community, make sure that short-term rentals are allowed. Short-term rentals are defined as six months or less. With vacation rentals, the typical stay in high season (summer in Destin and South Walton) is one week, but vacation rentals are also booked by winter guests, who take advantage of lower seasonal rates to escape frigid winters up north, and those are typically one month or longer.
The big question is: how do you know how much income a property can generate? Purchasing a home or condo with a rental history is the obvious answer. With one year - preferably two or more - of rental income to review, it’s easy to know how much income the property already generates, but keep in mind that updated paint, finishes and furnishings can greatly enhance rental income.
If those numbers are available, remember to look at net income and not gross. As with any property, there are costs associated with ownership. In addition to mortgage costs, taxes, utilities and insurance, rental properties require regular cleaning, maintenance and updates to attract the most vacationers at the highest rates. Though you may choose to rent your property directly through an online site to save in management fees, many owners find it more productive and convenient to have their rental properties professionally managed, a service that Newman-Dailey has provided for 30 years.
These are just a few of the major factors to consider when looking at vacation rental properties. Requirements such as insurance, assessments and tax considerations can best be addressed by speaking with an experienced South Walton or Destin Realtor with knowledge in all facets of real estate investment. Celebrating 30 years, Newman-Dailey's Real Estate Division offers extensive expertise and resources in the Destin market.
Newman-Dailey’s team of South Walton and Destin Real Estate Agents have decades of combined experience in the local market and can provide valuable advice in each of these areas. If you’d rather be at the beach, contact one today to turn your dream into reality. Call us at 1-800-225-7652.
Whew... Lots of properties! Please, give us a sec.