Go Back  The Hull Truth - Boating and Fishing Forum > BOATING FORUMS > Dockside Chat
Reload this Page >

Another Vacation Rental Income Thread

Notices

Another Vacation Rental Income Thread

Old 09-07-2018, 04:26 AM
  #1  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Oct 2012
Location: Boca Grande,FL
Posts: 1,831
Received 353 Likes on 196 Posts
Default Another Vacation Rental Income Thread

Looking for opinions from those with vacation rentals. Have a home on one of the islands in SW FL that will be rentable during peak season. Have 2 choices.

1. Rent weekly. Will rent at $2,500 per week for 4 months per year minus management fees.

2. Rent to a single tenant for $5,000 per month for a 4 month period. Also minus management fees.

The income from weekly is attractive. Just concerned about the likelihood of increased wear and tear and Iím wondering if it might just be a wash at the end of the day.

Would appreciate input from anybody with experience with this type of property.

Thanks.

Old 09-07-2018, 05:08 AM
  #2  
Senior MemberCaptains Club Member
 
Join Date: Mar 2004
Location: Boynton Beach Islamorada
Posts: 2,727
Received 933 Likes on 487 Posts
Default

I think the choice is obvious. When people ask me for a better price for a monthly rental, I always say no because I am going to rent it to someone regardless. They always concede. And even if there is a few more scuff marks, look at the extra money you have to repaint or touch up.
Old 09-07-2018, 05:38 AM
  #3  
Senior Member
 
Join Date: Dec 2015
Location: Central Florida
Posts: 1,835
Received 698 Likes on 505 Posts
Default

On another thread someone says that they made a nice income renting for short periods. Trying to obey the laws in the Keys they switched to monthly rentals. They say that their 70k annual income dried up to mostly nothing. So who knows what will work in your area. For this poster short periods of renting worked very well for feeding the family.
Old 09-07-2018, 06:19 AM
  #4  
Senior MemberCaptains Club MemberPLEDGER
 
Join Date: Jan 2005
Location: SC
Posts: 11,795
Received 8,163 Likes on 4,309 Posts
Default

Seems your gap between weekly and monthly is too big. If it is a property that is eligible for weekly rental, and highly likely to be occupied during that time, a small discount would be in line, but not 1/2 price.
Old 09-07-2018, 10:54 AM
  #5  
AC
Senior MemberCaptains Club Member
 
Join Date: Dec 2001
Location: Fl.
Posts: 1,375
Likes: 0
Received 200 Likes on 115 Posts
Default

As mentioned, first thing you need to do is confirm the house is zoned for weekly rentals. Just because a lot of people do, doesn't mean it's leagal.

if so, weekly by far is the way to go.

Wear and tear is surprisingly low. They have a security deposit riding on it, and they will want to leave it like they found it to get it back.

most damage believe it or not comes from toddlers pulling on blinds, walking around wit their sippy cups upside down. Cookie crumbs, etc.
Old 09-07-2018, 11:32 AM
  #6  
Admirals ClubCaptains Club Member Admiral's Club Member
 
Join Date: Nov 2003
Location: Ocean City MD
Posts: 951
Likes: 0
Received 227 Likes on 148 Posts
Default

Monthly renter pool is much smaller too. For any rental company, ask to see comps on other similar properties and see if the properties are online.
Don't forget, you pay cleaning services each time the tenant changes.
I personally think that weekly renters will spend less time in the unit. Monthly renters I would expect will wear out after a week then spend more time in the unit.
I love great weather cause it means they are not in the unit.
I have a mural on one wall. That wall NEVER gets damage. Make your place look nice and you get better tenants (in general).
Even though I use a company, I have a sign on the wall with a special gmail account for the condo. Sign tells them to look around an send a photo of any damage to me upon arrival. They know they will be monitored by next tenant.
I kid you not, since then, no holes in walls, no cracked glass. I averaged one "mysterious" damage incident per year and now zero. For previous years, I had to fight with mgmnt company to find the culprit and get restitution.

Good Luck
Old 09-07-2018, 06:00 PM
  #7  
Admirals Club Admiral's Club Member
Thread Starter
 
Join Date: Oct 2012
Location: Boca Grande,FL
Posts: 1,831
Received 353 Likes on 196 Posts
Default

Thanks for the info. I met with our local management company today and they recommended listing the house for $2,800/week and they would charge a 10% management fee which includes looking after the house and weekly cleaning. They also said we could charge extra for items such as use of the boat lift and oddly enough, the pool heater. He said they normally charge an additional $200/week if a renter wants the pool heated. Seems odd. The spa would pretty much be useless without the heater. He said they screen their renters and 85% of their customers are return clients with a good track record. Recommended increasing weekly rent during holidays and taking it off the market during spring break.

I also spoke with 2 of my neighbors and they've never had any problems other than just cosmetic repairs from time to time.

They said expect that little things will go missing and recommended taking everything personal out of the house.

All seemed reasonable to me so we're going to give it a try and see what happens.
Old 09-07-2018, 07:28 PM
  #8  
Admirals Club Admiral's Club Member
 
Join Date: Nov 2012
Location: Charleston, SC
Posts: 8,629
Received 1,198 Likes on 709 Posts
Default

We've got a beach rental. Painted it last winter hadn't seen it since April, was fully booked, and spent Labor Day there. Place looked impeccable.

Weekly rent is king if it's a desirable location.
Old 09-08-2018, 05:26 AM
  #9  
Senior MemberCaptains Club Member
 
Join Date: Jul 2006
Location: Pompano Beach, FL
Posts: 1,919
Received 84 Likes on 44 Posts
Default

I own a monthly rental place in Ft Myers. Itís been good to me and was significantly cheaper to buy than weely rental places. Iíve never, in sole 16 years of owning it, not had it rented at least 3 and mostly 4 months. I donít get that kind of coin, but I get enough to cover cost plus a bit.

Damage has always been virtually zero - except after hurricane CharŮey when I rented to an insurance company for its adjuster - more like adjustERS! Man they did a number on the place. My monthly tenants are usually geriatric - worst damage Iíve had is coffee stain on carpets
Old 09-08-2018, 06:45 AM
  #10  
Senior Member
 
Join Date: Dec 2015
Location: Central Florida
Posts: 1,835
Received 698 Likes on 505 Posts
Default

Originally Posted by haneyrm View Post
Thanks for the info. I met with our local management company today and they recommended listing the house for $2,800/week and they would charge a 10% management fee which includes looking after the house and weekly cleaning. They also said we could charge extra for items such as use of the boat lift and oddly enough, the pool heater. He said they normally charge an additional $200/week if a renter wants the pool heated. Seems odd. The spa would pretty much be useless without the heater. He said they screen their renters and 85% of their customers are return clients with a good track record. Recommended increasing weekly rent during holidays and taking it off the market during spring break.

I also spoke with 2 of my neighbors and they've never had any problems other than just cosmetic repairs from time to time.

They said expect that little things will go missing and recommended taking everything personal out of the house.

All seemed reasonable to me so we're going to give it a try and see what happens.
I find it pretty expensive to heat my pool or spa with my LP Gas water heater, so I think you are getting good advice.
Old 09-08-2018, 08:32 AM
  #11  
Admirals Club Admiral's Club Member
 
Join Date: Aug 2012
Location: Madeira Beach, FL
Posts: 141
Likes: 0
Received 164 Likes on 69 Posts
Default

Having owned and managed as many as 85 vacation rental units (I currently own three, managed appprox. 80 for others) I can say that the weekly rentals are the way to go. I have found that they do less damage than the longer term renters because they actually spend less time in the unit. On shorter stays they tend to eat out almost every meal - monthly renters stay in and cook. Short-term renters cram all of the touristy things in and usually only sleep in the place. The rents are way higher, too. A healthy security deposit also makes them more likely to pay attention to the condition of the unit.
Old 09-08-2018, 12:48 PM
  #12  
lps
Senior Member
 
Join Date: Jul 2003
Posts: 817
Likes: 0
Received 283 Likes on 151 Posts
Default

My wife and I faced the same choice last year when we bought an "investment" rental house on the North Carolina outer banks last year. We ended up going the vacation rental route, in our case, using Airbnb. We have a neighbor who manages it for us (he's a licensed broker who has a lot of experience with Airbnb). A long term tenant would have brought us about $1200 per month. We got the house on the rental market in March, and, so far, we have about $22K in rentals (net of what we pay our neighbor to manage it, occupancy tax, and cleaning costs). Probably about 80% of our rentals are less than a week (4-5 days).

When we were exploring our options, we spoke with a local realtor about having them handle vacation rentals. They estimated it would bring about $800 a week during the season, and they charged 10% (plus lots of nickeling and diming for incidentals, like changing bulbs, unlocking doors, etc.). They wouldn't do anything other than weekly rentals. We have it set up on Airbnb to allow one night rentals, and have had quite a few of those.

Wear and tear has been minimal, so far. We're already at pretty close to a 10% capitalization rate (net income) this year, which is pretty excellent, in my opinion.

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.