Whether you already own a second home in Florida or you’re thinking about buying a vacation home or a retirement home, this is a decision that will come with many benefits. If you know anything at all about the real estate market in Florida, you know that homes here are very valuable, and they’re only becoming more valuable with each passing year. Florida is a popular place to visit and to live.
Owning a second home in the sunny state of Florida can provide you with a serene vacation spot that you get to enjoy anytime you have the availability. But, you won’t be using that second home all the time, so why not turn it into an incredible investment opportunity?
The rental market is booming throughout the state, and especially in southwest Florida, along the Gulf of Mexico. Savvy homeowners can turn a handsome profit if they want to rent their home out to other vacationers. But how do you make your property stand out and maximize your rental income?
We work with vacation properties all the time. We lease them out to short term guests who are staying one night, two weeks, or even a few months. We also manage those homes for the owners, ensuring a smooth rental process, a lot of preventative maintenance, and a responsive approach to providing great guest experiences.
Today, we’re sharing some of our best strategies for maximizing rental income as the owner of a second home in Florida. You’ll be surprised at the difference these tips can make.
Understand Your Market
Are you interested in renting your home out for the short term or the long term? This is the first most important question that you have to answer. If you’re holding onto this property for your eventual retirement and you don’t believe you’ll be using it throughout the year, a long term rental might be best for you. It ensures stability, consistent and recurring income, and a tenant who is likely to care for the property as if it’s their own home.
When you plan to use the home, however, for vacations and holidays or even to share with close friends and family members, you’ll want to do a short term rental so that you don’t disturb or displace your long term tenant.
These are very lucrative in Florida, which doesn’t really have an off-season, thanks to our climate and our abundance of year-round activities.
So, the first step in maximizing rental income is to understand the local market well.
Whether you’re short term or long term, you’ll have to know what rents are going for, how long it’s taking to get your property occupied, and what tenants or guests are looking for.
Get to know the especially busy seasons in southwest Florida. There will always be people visiting, but you’ll find you’re able to earn more money during spring break, for example. Spend some time researching competing listings. Take a look at local events calendars. You’ll get an idea about how the market tends to ebb and flow depending on season and economic indicators.
Attract Guests with an Irresistible Listing
Create a rental listing that’s going to grab the attention of potential tenants and guests.
First impressions are a big deal, especially when you’re trying to get someone to choose your rental home over a ton of others.
Your rental listing needs high-quality photos that showcase your home’s best features. Consider including a video, too, which gives people a sense of taking a tour. You want pictures that include:
- All bedrooms and bathrooms.
- The kitchen as well as the appliances and supplies that are in there. Vacation renters will need plates and cookware and a coffee maker and a tea kettle.
- Living rooms and common spaces where your guests can gather.
- Outdoor space, whether it’s a balcony, a courtyard, or a full fenced backyard.
- Location shots. Close to the beach? Make sure you include a photo of the water that’s right down the street.
To complement your photos, you’ll also need an engaging description
Be responsive. Don’t leave your messages open without a response. Guests have a lot of options, especially when it comes to the vacation market. Get in touch and close the deal. Those inquiries are time-sensitive, especially if you’re trying to keep your home booked and your rental income maximized.
Upgrade Your Amenities
When you’re willing to put some money into your property, you’ll get a huge return on that investment. Renters coming to Florida are looking for comfort and convenience when they book a vacation home. There are a lot of reasons that they’re choosing a private home over a hotel. They want space and privacy. They want an experience.
Upgrading your amenities can justify higher rental prices. Consider adding high-speed internet, smart TVs, a hot tub, or beach equipment to your offering. Also, basic upgrades like comfortable mattresses and a well-equipped kitchen can vastly improve your guests’ stays and lead to better reviews.
You need to constantly keep an eye on the competition. Make sure you have something to offer that other properties do not offer. This will make a big difference in your vacancy rate and your per-night rental rate.
Get Comfortable with Dynamic Pricing
It’s important that you’re setting a rental rate that’s competitive but also profitable. Keeping up with the nightly average is difficult. The way that short term rentals are priced is fluid. It’s not like your long term leases, which will have a consistent rent every month for a year, at least.
Just as airlines and hotels adjust their prices based on demand, so should you. Implement dynamic pricing strategies where rental rates vary with seasonality and local events. There are plenty of online tools that can help with this, or you can partner with a local property manager to ensure you aren’t leaving money on the table by pricing your home too low or losing out on bookings because you’ve priced your home too high. Ensure your price is always competitive while maximizing your income during peak seasons.
Offer a Memorable Experience that Guests Will Talk About
In a competitive rental market such as the one we have in southwest Florida, the experience you provide is just as important as the space itself. Personal touches like a welcome basket, a guidebook with local recommendations, or the flexibility of early check-in/late check-out can leave a lasting impression, leading to repeat bookings and glowing reviews.
Provide personal touches and get to know your guests and their needs. If they’re arriving with children, make sure there are toys available. If you’re renting out a pet-friendly property, supply pet beds and treats.
Encourage reviews. Put a guestbook out, and ask for guests to leave a note before they depart. This will generate a lot of positive attention online. You’ll get the attention of future guests and ensure your property stays booked, which will maximize your income.
Invest in Professional Management
If you’re not local or prefer hands-off management, hiring a professional property manager could be a wise investment. We will handle everything for you, from booking to maintenance to ensuring your guests receive a professional service.
By partnering with a professional management company, you will also find that your property is rented more consistently. You’ll save yourself some time and reduce the hassle of self-management. Here are some specific ways your property manager can help you earn more:
- Regular and preventative maintenance
Ensuring your property is well-maintained is key to securing higher rental prices and consistent bookings. Regular cleaning, seasonal maintenance for pools and gardens, and prompt repairs improve the guest experience and safeguard your property’s value.
- Navigating Laws and Regulations
It’s hard to keep up with local and state laws that pertain to your rental property in Florida. Your property manager can help with everything from licensing requirements to taxes. Compliance with these laws is crucial to avoid fines and ensure that your rental operations are legitimate.
- Providing Direct Bookings
While listing sites such as Airbnb and VRBO are valuable, cultivating direct bookings through your property manager’s own website or social media can save you from hefty commission fees. If your property manager is especially good at marketing and has invested in technology, you’ll find that you can avoid the fees and requirements of those online sites.
- Collect Reviews and Utilize Feedback
Your property manager will help you build a good reputation. Feedback from guests is precious. We can collect reviews and use them to drive interest in your property. This demonstrates that your property manager is invested in your guest experience and your profitability.
Successfully renting out a second home in Florida requires initiative, a smart strategy, and a bit of creativity. These are some general tips that we believe will help everyone, but each vacation home is different. We’d be happy to take a look at yours and give you an idea of where more money can be made.
Let’s talk about turning your second home into a profitable rental property. Contact us at Realty Group of Southwest Florida.
