Buying a Beach Vacation Rental Property: 5 Things You Need to Know from a Realtor

Have you been dreaming about a beachfront vacation home? One that you get to enjoy, but also pays for itself with rental income? 

Are you ready to take the plunge, but not sure where to start here in the Tampa Bay area? I'm here to share some tips on buying a property at the beach.

#1 LOCATION, LOCATION, LOCATION

It's the first rule in real estate for a reason, and very much applies to vacation rentals. There are two things to consider when evaluating locations. What type of location do you want for your own use, and what will renters want? 

As you drive down the beach areas in Pinellas County, there are different towns with totally different vibes from St. Pete Beach to Clearwater.

#2 MINIMUM RENTAL RESTRICTIONS

If you're looking at condos, please know that nearly every condominium association has specific rental restrictions you will have to follow. Some allow for short term rentals, but others only permit longer time periods like six months or more. 

Considering a single family home? Be sure to check the rules of individual towns or villages as some of them do have rental restrictions - especially for short term rentals or renting out rooms in homes. 

#3 PROPERTY MANAGEMENT

Most of my clients who have purchased beach rental properties don't have the time and desire to advertise the home, handle the lease, collect rent, pay taxes, and deal with ongoing maintenance issues.

Property managers tend to charge between 8 - 10% of the monthly rent for their services.

It can save you a lot of headaches and keep you out of trouble - especially when dealing with state and local taxes.

Owners that rent out a condo/home for less than 6 month periods are required to collect both a tourist development tax and sales tax - 13% in Pinellas County.

#4 COSTS

There are quite a few costs to consider from condo association fees, property taxes, insurance, property management fees, and general maintenance. These costs can add up, so crunch the numbers to see if you will actually net a profit.

#5 KNOW YOUR SEASONS

Rent prices vary depending on the season. Obviously, the winter months of January, February, and March are peak times for beach rentals. That's also when most Northerners want to actually use their beach house.

If you're looking to maximize your rental profit, you may need to use your home during off-peak seasons. 

BONUS TIP: Make sure you are working with a knowledgeable realtor with expertise in the areas you're looking to purchase in.

Melanie is a Tampa Bay area Realtor with Smith & Associates. 

She loves Tampa Bay area area, houses, and helping clients buy and sell real estate. 

melanielovestampabay.com 

Email: [email protected] 

Call/text me if you are looking to buy / sell a home in the Tampa Bay area! 813.368.6084 

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