It seems like the Sunny State never loses on its popularity. Even with the ongoing pandemic situation and ever-changing real estate trends, Florida still has an optimal tourist flow. With the increased international travel measures, more and more American citizens opt for staying within the borders. So, instead of going to the Philippines or Thailand, many will choose a hustle-free option: Florida. Of course, this also means fewer foreign tourists for the time being. But all in all, losses should not be significant. Then again, the current situation is not meant to last forever. Besides, there are various other factors to consider before investing. To make things a bit easier, we bring you some of the pros and cons of investing in Florida vacation rentals.
Pros of investing in Florida vacation rentals
For a start, try mentioning to someone that you own a vacation rental in Pembroke Pines or someplace else in Florida and wait for their response. Most of the reactions will probably be excitement and amazement. The mere fact that a significant majority of people will see it as an accomplishment says a lot about this undertaking. Not to mention the actual benefits you will end up with once you own a vacation spot in Florida. Some of them being the following.
Who doesn’t want to have the option of relaxing in Florida from time to time? Now, more than ever, owning a small retreat away from the crowds and stress of modern life has become a luxury. A privilege that not everyone can afford, but everyone is yearning for lately. A tiny bungalow in the middle of nowhere could do just right. But with a decent vacation rental somewhere in Florida, you might as well feel like you have won a lottery.
Any expert real estate agent will highlight to you the great chances of considerable additional income if you opt for a property in Florida. But even laics understand how profitable this part of the States is, especially popular tourist spots like Fort Lauderdale. So, by investing in real estate in Florida, you are designing a win-win situation for yourself. You get to have a perfect retreat for your family when you need a rest and a side business when you need some extra money.
You get to learn about the business
By owning only one vacation rental, you get to learn a lot about subletting businesses in general. And not only that, this way you will learn more about taking care of your own finances too. There are different economic advantages and tax benefits that only rental property owners can use. Learn what these are and, maybe, you’ll even be able to implement some of them to reduce your regular living expenses.
Cons of investing in Florida vacation rentals
Every medal has the other side. And every business requires an ample amount of time, money, and effort investment. But on the other hand, without leaving your zone of comfort, chances for any life improvements are minimal. So here are some of the major drawbacks of investing in Florida.
Considerable costs of investing in Florida vacation rentals
Not many places in Florida are on the list of the cities where Millennials can afford a home or a holiday sanctuary. Florida is certainly not the cheapest country in the US. Still, while you should get prepared to invest a small fortune for an average property in Florida, your gain, later on, might be many times bigger as well. Not to mention the property prices there being constantly on the rise. Meaning, whenever you decide to sell your vacation rental, you should be able to get all your money back and more.
Managing paperwork and procedural requirements
Managing paperwork for vacation rentals is definitely not a vacation. It is more like a full-time job that requires a management degree. You will have to study a lot before you venture into this project. Especially if it is your first experience of this kind, do your research as early as possible. The more you know about the state’s renting lows and requirements, the better chances of success you have.
Every project of this kind brings a certain amount of responsibility with it. Simply put, once you have a property for renting, no matter who is living there, it is your job to keep the place functional. So get ready for repairing arrangements of all kinds and many unpredicted additional costs. Keep in mind that the quality advertising for your rental apartments bears some costs as well.
The best places and spots in Florida to invest in vacation rentals
There are multiple criteria for deciding on the best place in Florida for real estate investments. No matter what your priorities are, try to combine at least two or three of these criteria for a more realistic final picture. These are our places of choice in Florida.
Pembroke Pines offers various opportunities, and that puts it on top of our list. As it is often voted as one of the best places to live in Florida, you certainly won’t have a problem attracting guests there. It is the urban vs. suburban mixture of lifestyles that gives it a unique charm. Besides, it is quite an affordable place, for the beauty it offers.
The only place in Florida that has a better quality and price ratio than Pembroke Pines is St. Augustine. It is a small city in north Florida with great possibilities. Its popularity and renting out prices are on the rise. Owning a vacation rental property in St. Augustine is undoubtedly a smart choice.
If you are looking for a slightly larger city with more events and happenings, Fort Lauderdale is the place for you. A combination of perfect beaches and rich cultural life will leave nobody unimpressed. The only challenge that may arise here is to find reliable partners to assist you with arranging your new place. In a city of this scale, you will come across different moving offers. Doing a small online research can help you greatly in making the right decision. It is the easiest and safest way to find Fort Lauderdale-based experts you can ask for help and trust with your new project.
No matter where you stand regarding real estate ventures, one thing is for sure. Investing in Florida vacation rentals has always been a lucrative business. So if you are still making up your mind about where to invest in a property, you should definitely put Florida somewhere on top of your list.