Vacation Rentals

[Megan Helm]

Hi, Wondering if anyone has investment vacation rentals (condo/SFH) in St. Petersburg area or Ft. Myers?Cape Coral??? Viewing properties next weekend. How is the rental market? I've noticed most associations require 30+ days rental period. Is this a problem during slower months? Any advice is appreciated!

Thanks!

[Jeff Graves]

@Megan Helm It sounds like you are doing the leg work you need...going and looking at properties, get a good feel for values, potential income (worse case scenario and crunch the numbers yourself).

I can only address your last question..."Is this a problem during the slower months?"

30+ day rentals here in Hawaii can do alright we have many Canadians who come down for just under 6 months...so that could be a potential market for you there in Florida as well.  

1. Determine who your primary market is and how you will be able to reach them is critical to your success.

2. Is your rental window long enough to yield you the needed return on your investment?

3. If there is a seasonal rental period of say 6 months...how will the other 6 months impact you?  Will you use it personally during the "low season"?  What if it is only occupied 2 or 3 months of that 6 month low season (if there is a low season) year after year, would you be ok with that or need to sell it?

4. Determine what your break-even occupancy rate is.

5. Make sure you have money in reserves to cover all expenses (even unexpected ones) for several months.

I hope that gives you a few things to help you analyze your investment strategy and minimize your risk.

Aloha,

Jeff