Things To Keep in Mind Before Investing in a Vacation Rental Home
Wouldn’t it be wonderful to own a property close to the beaches? The place will no doubt be peaceful and a wonderful getaway for you. A vacation home can also be a good investment for your future and an income source if you decide to rent it. No matter how you are planning to use your vacation home, before buying it, you should always do a thorough research.
The best way to find your dream vacation home is to hire a Destin Florida real estate agent. At destinflorida.com, we provide a wide range of home options for you such as condos, apartments, townhouse and cottages. Our goal is to provide you best homes at an affordable price. We have listed homes at places like Fort Walton Beach, Okaloosa Island, Miramar Beach, and 30A.
As the saying goes “Do not bite off more than you can chew” you should not rush into making rash decisions without having the conundrum in your mind settled. Read on to be aware of the things you’d have to deal with in order to owning a rental in Destin Florida:
1. Do not go over-budget- decide a budget and stick to it
It is an exciting thought to own and rent a place at a vacation spot. It would be a rest place for you and also, would help you generate some extra bucks on the side. If you are a beginner, don’t be tempted to invest in a penthouse thinking you’d have a better return on investment. Although, that might be true, but there’s also a huge investment involved in it. A better option would be to invest in something in your decided budget, probably some condo building with property management facilities.
2. Decide the type of property you want to rental
Of course it is your choice as to the type of property you want to own, but ask yourself the following questions just to ensure you don’t go overboard with something out of your league:
- Do you intend to use it for personal use and just a side income from rental?
- Do you intend to have the most return on your purchase?
If you choose to enjoy looking out at the waves going by, you’d be happier buying a beach condo. Whereas, if you want to make a higher rental income, you should go for something off the beach, a house accommodating more number of people with larger area.
Research about the area to buy in… Know the vacancy rate
This will mostly depend on the budget you decide upon. Let’s break apart the area according to the price and amenities nearby-
- Destin to Rosemary beach- As you move towards East of Destin, the prices will rise. You can look around this area when there’s no concern of going little over budget.
- Destin- Miramar Beach- You’ll be very near to exciting activities attracting most of the tourists here. Fishing charters, putt-putt golf, go- karts, parasailing, dolphin cruises, outlet malls are some of the many pursuits enjoyed by vacationers.
- 30A/ Santa Rosa Beach- With its old-world charm, this area consists of fewer superstructures but many options for haute cuisine. Also, this part is less populated.
4. Consider other expenses in your budget
The most important thing that you might already have arranged for is the mortgage for your investment. However, do not commit a mistake of under-estimating the following costs, which will occur on a regular basis if you want to run a successful rental.
- Any unavoidable repairs to the roof or the air-conditioner
- Supplies that you’d have to keep replenishing such as- paper towels, coffee, sugar, toilet papers, cleaning supplies, linens, towels among others
- Marketing expense that you’d have to incur on photographs and advertisement of the rental
- Insurance rate for the property might fluctuate from time to time
- You’d have to get the place furnished- lightings, décor, tv, bedroom accessories, artwork, etc.
- You need to pay the utilities bill such as electricity depending on the climatic conditions
Whenever you are in a need of a break and want to blow some stress out, you can visit your vacation home anytime. You will surely feel relaxed and calm. Followings are some more benefits of owning a beach house:
- Renting out the property-
Once you buy a vacation home, you can start renting it out when you do not use it. However, first it is important that you furnish all the bedrooms, living room, kitchen and outdoor places. While you will get income out of it, the property has to be maintained. You can list the property for rent on a professional property rental company and they will handle the booking process and track reservation.
- Ready to go vacation spot-
Having a beach house will surely be relaxing for you; soaking in the sun, diving into the water, playing games, walking on the sand at sunset and more activities. You can have your must have amenities at your vacation home like pool or specific kitchen appliances. At Destin you will find challenging golf course, fishing, seafood restaurants and beautiful gulf views.
- Stress free rentals-
From helping you find the perfect home for you to guiding you in the process of finalizing the purchase the real estate professionals will be the perfect option. They would have all the contacts you will need to manage a rental house like attorneys, accountants, lenders and leasing agents
In case of emergency, when you are away from your vacation home, the property management company will handle it. They will also help the guests in arranging their activities, transportation and dinner reservation.
Like a coin, owning and renting a property has its risks and rewards. Try to get yourself a balanced deal by considering the points mentioned. Also, you can research about the HOA, if that’s beneficial for you, you can get started in no time! HOA dues in a condo mostly cover the expenses of the utility as well as insurance.