Are you thinking of buying property that you can rent out? As with any investment, you have to plan where and what to buy, plus how to manage it in order to turn your purchase into a passive but lucrative source of income.
When it comes to location, the beachside cities of Fort Lauderdale and Miami are great choices. They usually draw locals looking for a weekend getaway and tourists from afar. However, you still need to be smart in selecting the vacation property to buy, crafting your marketing strategy, and running your business.
Check out our expert tips for renting a vacation home you want to invest in:
DO research and plan thoroughly
Be meticulous at the beginning stages of your search – from studying the location and finding the right Realtor to creating a financial and management plan. Find out where and how you can generate the best revenue with the help of a licensed real estate agent that has been working in the area for years. Check the prices of other rentals in the area so you won’t overprice yours. Decide whether you’ll hire a financial consultant and property manager, especially if you don’t have professional experience in those areas.
DON’T skimp on site inspections
Never rely on virtual tours and printed information alone. These are great preliminary tools, especially during times of social distancing. However, you need to view the property in person. You need a feel of the place, the surroundings, a sense of the scope of the renovation that’s needed, and so on. Do a little digging around the neighborhood to get an idea of the volume of short-stay renters during high season. Be aware, too, of the property’s reputation. Was it known as a party house? Or did it attract families? Walk around the neighborhood to check out other vacation rentals so that you can start thinking of how you can set your property apart from the competition. Ask questions such as, “What amenities can you offer that other rentals don’t?”
DO stay objective or DON’T be an emotional buyer
Let’s say you’re planning to occupy the rental for personal stays, balance your “wants” with the things that could make your investment profitable. You might love a property for its quirks, but will they attract renters? And, if you stay in the property frequently, that might entail more maintenance costs. These are some factors that will definitely affect your potential rental income.
DON’T forget about taxes and insurance
This is probably a given when you’re working with a pro, but it’s still worth mentioning. Keep these crucial factors in mind as you finalize your financial plan and draw up contracts. Take note that property codes update over the years, so prepare for possible renovation costs down the road. And, as with any business, expect the unexpected. Accidents will happen; unexpected losses occur. So you need to enhance your insurance coverage to protect you and your investment from liabilities.
Whether you’re planning to do business or start living in Fort Lauderdale, FL, make sure you do it with an experienced professional by your side.
Explore your vacation rental options in Fort Lauderdale by consulting Florida’s Certified Luxury Property Specialist, the Connie Cabral Group.
Connie has been a top producer for 9 consecutive years out of the 13 years she’s been in the business. Her expertise has led to numerous appearances on HGTV, where she ranked Top 1% nationwide in the network.
Call Connie Cabral and her team of Florida real estate experts at 305.776.0899 or email connie(at)conniecabral(dotted)com to get started.
We’ll look for the best property that suits your purpose so you can make the most of your investment.