Emerald Coast Investment Property 101

by Julie Endsley

Ready to start building your Beach Rental Investment Empire? It can be hard to know where to start if you're new to the process of purchasing a vacation rental for. Here are a couple of helpful tips for potential buyers of vacation rentals for investment. This information is specific to the Emerald Coast of Florida, but some aspects will apply to other areas as well.

1) You can hire a Property Management company. There is an abundance of options available from Destin, FL to Panama City Beach, FL. How much is property management? Each company will have variations in its pricing structure and services, but in general, you can plan on 20-30% of your gross rental income going to the Property Manager.

2) You can self-manage through an online service (such as Airbnb). You'll save in management costs, with your main costs being processing fees for the online service. Cleaning fees are usually passed on to the customer at the time of booking.

3) On the Panhandle of Florida, our peak season is Memorial Day to Labor Day. The highest rents can be charged during this period. Higher rents can also be expected around major holidays (New Years, Christmas, Thanksgiving) and Spring Break season. April, September, and October usually command lower rents, and the winter season will often be slow with the exception of snowbirds, who pay considerably less rent, and often stay for a month at a time.

4) HOA fees can impact your bottom line. Be sure to factor in the community Association fees. In resort communities with things like pools, tennis courts, and beach acesss, it isn't unusual for these fees to be $500-$900+ dollars per month for condos. Detached single family homes come at a higher price point, but the HOA fees tend to be much lower.

5) Rental projections can give you a rough idea of future income, but rental histories are more reliable. Also note how often and during what season the Owner used the property, as those weeks would not have produced any income.

6) Proximity to the beach is EVERYTHING. Rentals still rent well if they're within a short drive to a public beach access, but you'll want to aim for property south of SR 98. The closer to the beach, the better. The exception to this rule is Sandestin Resort.

7) Not every community will allow short-term rentals. Be sure to ask if there are restrictions of this type when checking out a property.

The bottom line: There is much to consider when purchasing a short-term rental investment property on the beach. With your investment goals in mind, contact Julie Endsley at Gulf Realty 30A for expert guidance on the best way to reach those goals. The experienced Agents on the Endsley Team are your local investment experts, specializing in working with out of town buyers for a smooth and profitable experience. Happy investing Friends!

- Julie

Emerald Coast Investment Property 101

by Julie Endsley

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