Time to Step a Foot in the Water; Navigating Florida’s Rental Income Market.

Submitted by Dana M Perkins,

Premier Sotheby’s International Realty

325 Vanderbilt Beach Rd, Naples FL

Making a move to Florida can be a big step for retirees or second home buyers looking for a vacation destination for their families. Many people prefer to test the waters so to speak before taking the plunge into home ownership. Because Naples is so desirable, we enjoy a vibrant sales and rental market.

If you want to make a move to Naples but are looking to earn income in the transitional years, you may want to buy a property and use rental income to cover expenses until you are ready to relocate on a long term or permanent basis. Rental income generally covers home owner’s expenses & fees associated with property management. How do the fees & taxes work? Rates differ based on the time of year; high season generates the most income and this includes January, February, March and April. Off season rates are lower and begin May 1 through December.

Income in the transitional years

“So, what will all this cost me?” is a common question I receive when working with buyers. How much are the fees associated with purchasing a home and how much rental income can I expect? What are the fees associated with that? Your income will depend first on whether you own the property outright or if you acquire a mortgage. Then we take into account the home owner association (HOA) fees and taxes. Taxes run 11% in Collier County and this is paid by all visitors to the area. I always require tenants to pay the tax on top of the rental fee along with application fees.

Who can manage my long-distance rental property?

Many home owners list the property with a licensed real estate agent who generally charges 20% of the gross annual lease to market and lease the property. This fee also may include property management. Other options include VRBO or other websites, but they too charge a fee and with these sites, the owner is responsible for marketing and leasing paperwork. Since both options are fee associated it is generally easier to leave the work to the professionals.

If you find your dream home and think you are ready to buy I encourage you to reach out with any questions. Karen Kohler, owner of Access Title, can answer your questions regarding closing costs and title fees associated with the purchase. Once the property sale is closed, we can immediately list on the rental market for maximum exposure. Please reach out to Karen or me for more information on what home ownership could mean to your bottom line.

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