Is it a good idea to invest in a STR in Naples, FL?

Question

Brian Langstrom · Answer

If you see STR as a nightly rental, this is not the market in Naples. The restrictions by City and County will make it miserable. But if you want to do weekly and maybe seasonal (When the old people come down Jan-Mar) it is a great market. My experience is getting a lot of damages from Nightly and weekly renters. So I signed up with a travelling nurses rental program and I am booked to April on all my units.

Robert Alpizar · Answer

My opinion might be a bit biased as I live in and love Naples but based on how well I see others do with their STR's in Naples, I would say yes. Some will say Naples is pricier for Southwest Florida but so are the nightly rates compared to nearby cities. Naples has a lot to offer travelers and has always been a popular travel destination city. Just make sure you stay out of the "City of Naples" where STR's are not allowed. I just made a BP Post about that topic... check it out here: https://www.biggerpockets.com/...

G'Luck! :)

Josh Green · Answer

@Brooke Phun

Purchase prices being high, it not being a huge vacation spot and not having much exit strategy due to lack of industry, I would look in other areas such as the Tampa area. Not too far from Naples and probably the nearestarket that is still both affordable and profitable with high outlook for appreciation and growth.

Adam Bartomeo · Answer

Honestly, the replies in this thread tell me that most of these folks do manage, own, or know the current STR market in SWFL. I would avoid investing in an STR for at least 10 months. During Covid the market got flooded with STR's which drove down pricing. Due to Ian we lost 75% of our bookings. We did regain about 50% of what we lost but the prices were cut in 1/2 from the normal rates. We make the majority of our STR income from Jan - April and the rest of the year they barely break even. This year there will be very few profitable STR's. After 10 months the areas may be able to recoup enough to have a good "season" next year and you would be just in time to take advantage of some of the advanced bookings.

Robert Alpizar · Answer

When it comes to long term rentals in Naples, you have many more options than AirBNB Weekly Short term rentals. There is also the option for seasonal rentals during Jan-April at a much higher rate than annual (Seasonal Rates are typically 2-3X the annual rate)... each have their pros and cons. I recently came across a great gated neighborhood in Central Naples with low HOA fees that actually allows weekly rentals (that's a very are thing in Naples). Gated Communities are appealing to Long Term Renters but there are other factors as amenities, school zone, etc. At the price point you mentioned there are also some very good options in popular communities that are not gated... such as Willoughby Acres or Palm River. These are very desirable due to the school Zone and Family Friendly Environment - we see a lot of long term tenants in these communities. Hope this helps.

Brian Camey · Answer

I guess it all  depends on your goals. If the goal is cash flow, there are probably better markets where you can see good income year-round. If you are looking for a vacation spot you can enjoy, that also seconds as an income producer, I don't think Naples is a bad destination.

Nick Belsky · Answer

@Brooke Phun

Have you checked how AirDNA or AirBnB analyzes the area?  They often have very insightful tools...

Cheers!

Stetson Miller · Answer

@Brooke Phun Whether it is a good idea or not is certainly subjective, but in my opinion, it absolutely is! From an objective perspective, cash flow is decent, market appreciation is very solid and predictable, and the demand for short term rentals in this area is growing rapidly

As mentioned above, you do have a few restrictions to take into account when purchasing in Naples, specifically, but these are easy to navigate as long as you know what to look for. Good luck and keep us updated on whether you decide to proceed or not!

Robert Alpizar · Answer

I happen to live in Palm River Estates and absolutely love it here. We have a pool and are 3 Miles from the Beach so we are content with those amenities... the location also offers countless options for Shopping, Dining and Entertainment. With that said, I can see why having amenities within the community would be appealing to tenants... although I do not think it would be a deal breaker for a lot of seasonal tenants. It would just have to make sense based on the cost of HOA Fees and the rate properties within the community fetch. A lot of investors are understandably worried about high fees, but if a property rents for much more in the community, the investment makes sense.... for instance we manage condos in golf communities with very high fees, however those units rent for MUCH more than the condos with low fees and no golf. So I would suggest exploring a few communities and looking into the numbers to see if it's right for you... after all you will be using the property as well and need to like where it is and what it offers.

Is it a good idea to invest in a STR in Naples, FL?

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