Wondering whether to furnish and rent your property seasonally or to spare the expense and rent the property annually? This is a common question for many a property owner and one that we are often asked to weigh in on as the Cape Coral Rental Management company.
The answer to these two questions will give us the answer to the big question:
1. Do you intend to stay in the property at all during the year? If yes, this necessitates furnishings and turnkey ready status. regardless, we still need to consider question two:
2. Is the property in a highly amenitized community or resort area location that will justify strong seasonal rental rates and high occupancy? If the answer is no, only a strong yes to answer one above would push you toward seasonal rentals.
In general, any property not located in a resort community is always better off as an annual rental, even with lower annual rental rates. For example. If you have a property with the potential to rent for $1,200 per month unfurnished on an annual basis ($14,400 annual gross rents) or $2,500 per month as a seasonal rental but will only be rented for 6 months ($15,000 annual gross rent) (our high tourist season is from January through April) you still have to consider the costs of utilities, furniture replacement and the possibility of additional vacancy. Also, seasonal management fees are higher due to the fact that you have multiple placements per year instead of one. In this example after all considerations, the annual rental is by far the better income generator.
The cost difference between your net income on annual vs. seasonal rental is basically the cost you are paying to stay in the property for the time used per year. If you don’t visit the property often or the difference is substantial (as it often is) you are often better off renting a luxury rental when you do come into town and keeping your real estate investment property as profitable as possible. As a Cape Coral Rental Management company, we have many owners that own a home they intend to retire in but yet rent it annually until then and still use other vacation rentals with the income earned when they do actually come to town. Don’t let your rental property become another Boat that costs you more in lost income or maintenance costs than renting a yacht would for the actual time you can use it!
