Have you ever considered investing in property in Florida by purchasing a real estate and then renting it out, but you just don’t seem to know where to start, what are the risks, and what to look for? If that’s the case, this is the right article for you. Purchasing property in Florida to use it as a holiday rental can be a great investment and a very smart idea. It can also be a horrible one if not done properly. The main difference between these situations is the several factors that should be taken into consideration to ensure the best protection of your investment and making sure that there won’t be any bad surprises in the way.
Don’t worry; it’s not as scary as it sounds! Let us walk you through the process of renting out your property in Florida through a specific number of important steps.
1- Pick the right location :
Renting out your place means that you first buy one! But owning a property in Florida is not enough to guarantee the success of your investment. It should, however, be a property that is capable of attracting renters and visitors, which means simply that it should be in an interesting location.
To ensure that, you should start by looking for properties that are located in an area close to, or surrounded by, major beaches, restaurants, parks, museums, important shopping boutiques, or any important touristic destinations. In other words, you should own real estate in an area where people coming from around the globe are looking for rent, instead of taking the terrible decision of putting your money into place in the middle of nowhere even if you like it. To make the right decision, keep an experienced real estate agent by your side to help you pick the best location for your investment and to help with complicated paperwork of the process. The agent will also have great use in estimating the property’s real value, so you don’t end up overpaying. They will also let you know how much you should charge once you start renting it out.
2- Go for what renters are looking for:
Now that we have discussed the importance of the real estate location, you need to look for a property that offers a fantastic guest experience. This means an experience of comfort and relaxation, and in many cases, an experience of prestige and luxury. Make sure that your place has attractive features such as spacious bedrooms and bathrooms, a pool or/and a garden, a nice view, a well-designed interior. You should always remember that you should take into consideration upgrading the property if needed.
3- Pay attention to laws in place!
The compliance with the law doesn’t include the state’s laws exclusively and the restrictions and policies enforced by homeowner associations. To avoid being submitted to sanctions and fines and make sure you are complying with the laws of Florida, make sure you keep the right people by your side, meaning that you should be surrounded by an excellent real estate agent and a good lawyer, this will help you ease your mind since you will be delegating this mission to someone who knows what he is doing.
4- Apply for a hotel/motel lodging license:
You can’t start the activity of renting out your property without applying at first for this license. However, keep in mind that the cost of the permit varies according to many factors such as the location of the real estate, the size of the house, or the condo, and the date of the application.
The time in which you decide to apply can affect if you are going to end up paying a full-year fee or just a half-year fee. Getting your license will mean that the property you desire to rent out is going to be submitted to a sanitation and safety inspection. This inspection takes place after the
submission of the application and the fees for licensure, and it serves to confirm that your place is complying with the current safety laws such as swimming pool safety equipment.
5- Don’t forget to ensure your property:
Protecting your investment can’t be complete without insuring your property against any potential damage such as fire, smoke, wind, hail, vandalism, and theft. However, you can still cover minor damages by requesting a security deposit from your guests. However, bear in mind that most insurance policies usually don’t cover damages resulting from events such as tsunamis and floods, standing water, and several other sources of water. Most policies also exclude extreme circumstances like nuclear events or acts of war.
6- Get a manager for your property!
This option is specifically important in case your permanent house is not based in the same area or the same state, which will mean a huge difficulty in your ability to manage your investment.
If that’s the case, hiring a management company can be a very smart idea, for many reasons.
First of all, the management company plays a huge role in advertising your place and making sure it is known among the tourists, which automatically means that you will get more guests and more profit than what you could have gotten on your own. On the other hand, the management company takes care of many other issues, such as the protection and the maintenance of the property, and of course, manages the arrival and departure of the guests and ensures that they are comfortable and don’t need anything. If instructed, the management company can also take care of the security deposits that we mentioned above.
In conclusion, going through the process of renting out your property in Florida might be complicated and tiring. Still, you can make it smoother by following this guide and making sure that you have chosen the right location for the property; you have surrounded yourself by a good real estate agent, a good lawyer, and a good management company. In the end, don’t forget to secure your investment!