If you love going to the beach, chances are you’ve said something to this effect at one point or another: “Ah, it would be nice to have a vacation home here.” And when you invest in a property in the right place, it really can be nice. Not only can it provide you with a sun-soaked getaway, but it can also turn out to be a lucrative asset if you use it as a vacation rental.
When it comes to making money on vacation rentals, some areas of the country are better than others. Florida happens to be one the best areas to invest in a vacation rental. It’s affordable, beautiful, has warm weather all year round, and has loads of attractions. Whether you’re a retiree or simply a small-time investor, Florida should be atop your list of potential destinations.
There are companies that can help you purchase and close on a home more efficiently than traditional home-buying. One example is Florida-based Expetitle, a tech-driven title company providing the digital-first closing. Expetitle has always been committed to helping clients save money, time, and stress during real estate transactions. Here is some practical information and advice on purchasing a vacation rental in Florida:
The Benefits of a Vacation Rental
One of the most obvious benefits of owning a vacation home is that it’s yours — you can use it for peaceful getaways, hosting loved ones, creating new traditions, and/or moving into after you retire. And if you truly love the location, you won’t get tired of vacationing there, which means you can save money on the accommodations you would have spent elsewhere.
However, owning a vacation rental is also a great doorway to investment for novices, and it can generate some serious income. As long as you choose a desirable location that has plenty of attractions to offer guests, you’ll be in an excellent position to bring in passive income. You’ll also stand to build equity over time as the property’s value appreciates.
Florida is one of the prime vacation spots in the United States. It has hundreds of miles of shoreline and a slew of beach towns ranging from small to medium in size. The competition stays relatively low throughout the year while occupancy rates remain high. And depending on the town, it’s possible to purchase a home on the shore for less than $200,000.
Furthermore, maintaining a vacation home in Florida is much easier and more affordable than it is in many other places. On the whole, legal regulations are favorable, and this simplifies the process of renting out a home in a prime location like Miami on platforms like TurnKey. Property taxes are also more favorable than in many other areas of the country, as are costs of maintenance and repair.
Establishing an LLC
If you decide to purchase a vacation home, it’s essential to prepare legally. Consider forming an LLC for your vacation rental business early in the process. This will help to keep yourself and your assets protected from litigation. A lot of first-time investors use a formation service when establishing an LLC because it makes the process less stressful and is less expensive than hiring a lawyer.
Hiring a Property Management Company
Another way to help ensure you have a good experience is to hire a property management company from the get-go. The right company will make sure all maintenance and repairs are taken care of in a satisfactory and timely manner. They will use the latest technology (e.g., management software, dispatching apps, high-tech lockboxes, etc.) to improve the guest experience. Most importantly, they’ll use effective marketing and promotion strategies to get the word out about your property.
If you’re serious about purchasing a vacation rental, then Florida should be among the first places you consider. Keep in mind all the benefits of investing in a rental property in Florida, and be sure to form an LLC and hire a reputable property management company. Here’s to more adventures, relaxation, and income in the future!
Are you looking for the best title services in the business? Visit expetitle.com today to see all we have to offer!
Visit moneywithjim.org to read more articles from Jim McKinley.