Are you interested in trying your hand at real estate investing?
If so — and if you live in Florida — then there’s probably no better time.
And when it comes to investing, a vacation rental is probably the best place to start.
You can rent it out when you want and make use of it yourself when you want, making money off your investment while retaining freedom and flexibility.
Even then, owning a vacation home isn’t always smooth sailing. Your investment needs to be carefully managed and monitored in order to ensure success. Here are the details.
The perks of owning a vacation rental
Let’s start off with the pros of owning a vacation rental.
Perk #1: Extra income
The biggest benefit of having your own vacation property is simple: it’s a cash-producing asset! AIRBNB hosts often make 900$ or more every month, with hosts in bigger cities making more (up to four times more, in some cases).
Other good rental platforms include:
- Kid and Coe
Perk #2: A personal getaway
Perhaps the most interesting benefit of having a vacation rental means you have free use of it yourself! You can use your property for family vacations, reunions with old friends, and more.
Perk #3: The tax write-off
As long as you’re renting it for more than 15 days a year, you can treat your rental as a tax-deductible business. While you’ll have to pay taxes on this newfound business, you’ll also be able to write off many of the expenses associated with normal home ownership.
Here’s a list of eligible items you can deduct:
- Insurance fees
- Occupancy taxes
- Platform hosting fees
- Cleaning / repair costs
- Property management fees
Talk to a financial advisor for more info — this list is just the start.
Perk #4: A future nest egg
Your rental property can be a great way to ensure you still have income coming in after you retire. Sell it down the road and use the funds to finance your retirement lifestyle, or keep it for when you want to enjoy some vacation time yourself! Your wallet will thank you either way.
The downsides of investment properties…
Despite the above benefits, rental properties aren’t all sunshine and rainbows. One of the most challenging things about vacation rentals is tenant screening. For obvious reasons, you’ll want to make sure your home is being used by responsible, caring, kind vacationers.
Other potential downsides include:
- Legal complications
- Higher financing fees
- Managing the property
- Cashflow complications
- Extra monthly payments
- Marketing and finding guest
A vacation home isn’t a set-it-and-forget-it type of investment — it takes careful management!
How Icon can help you manage your investment property
Unless, of course, you join forces with a trusted professional property management company like Icon Realty. We have decades of experience managing vacation rentals across all of Florida.
We offer everything you need in a property management service. We can even help you find the right property to invest in. Schedule a free consultation today by clicking here or calling (321) 297-8960. We look forward to seeing how we can make your life easier!
To your peace of mind, vacation rental included,
Icon Property Management