While not the typical investment that comes to mind, the benefits of the short-term rental property sector of the market merit further investigation. Investors are wise to continually educate themselves on market news, keeping their business riding on top of the wave of real estate investing, with an eye towards the future.
Societal changes created more desirability for the unique features of short-term rentals brings a result, this transformation has come to the attention of investors.
We’ll explore five things you should know about investing in Fort Myers short-term rental property.
Growing Trend
Fueled by the rise of user-friendly apps and innovation within the real estate sector, the short-term rental market in Fort Myers is experiencing explosive growth. Today’s tech-savvy travelers are no longer content with the impersonal experience of traditional hotels. They crave a more customized stay, seeking properties that perfectly align with their needs. This is where short-term rentals shine. Through user-friendly apps, travelers can browse a diverse range of properties, from cozy studios to sprawling vacation homes, ensuring they find the perfect fit for their group size, budget, and desired amenities. Furthermore, short-term rentals often boast unique features and local touches that create a more personal and memorable experience compared to generic hotel rooms. This, coupled with the potential for privacy and a home-like atmosphere, is leading many vacationers to become repeat visitors, further solidifying the popularity of short-term rentals in the Fort Myers landscape.
Fewer Turnover Costs
In short-term rentals, especially in a city like Fort Myers where there are peak seasons or weekends with high demand, the property experiences less overall wear and tear. Since the unit sits vacant for stretches in between bookings, there’s less accumulated wear from daily use. This can be a significant advantage.
Consider the costs associated with traditional rentals. Turnover between tenants can be a hassle, involving deep cleaning, painting, and potentially even repairs for accumulated damage. This process often leaves the unit vacant for a period of time, meaning lost rental income. With short-term rentals, the turnover is quicker and the property is typically only vacant for short windows. While there may be more frequent cleaning, the overall wear and tear is often less compared to a long-term tenant who occupies the space for a full year.
Higher Returns
While occupied for a lower actual number of days, the rental rate for a Fort Myers short-term rental property is much higher per day and more than makes up for the difference in days occupied. In addition, landlords can adjust rates for holidays and other high-demand days on the calendar. You can also require minimum stays, which ensures your bottom line, even if the occupants don’t need the unit for that length of time. As a bonus, you can block off a limited number of prime days per year for yourself, being sure to follow the tax guidelines for vacation investment properties.
Diversify
Risk management is a crucial element alongside due diligence when crafting a real estate investment strategy. The key lies in diversification. By strategically spreading your investments across different sectors of real estate, you create a safety net for your income stream. Imagine one property type experiencing a downturn in the market. If you’ve also invested in other areas, the impact is lessened.
Here’s where short-term rentals in Fort Myers come in. As a burgeoning market, they offer an exciting opportunity to diversify your portfolio. The beauty of short-term rentals lies in the variety of potential tenants. Unlike traditional rentals where you might cater to a specific demographic, short-term rentals can attract a wider range of guests, from tourists and business travelers to families on vacation. This diversity translates to a more consistent flow of renters, which can be highly beneficial for investors. Furthermore, short-term rentals come in all shapes and sizes, with a spectrum of price points. This makes them an excellent option for new investors who might be starting with a smaller budget. By strategically choosing a short-term rental property within your budget, you can gain valuable experience in this growing market segment.
Tax Advantages
Owning Fort Myers short-term rental property is attractive because it offers the benefits of tax deductions for operating expenses. So naturally, costs for maintaining and refurbishing an investment property are also deductible. Be sure that you keep excellent records and receipts in an orderly fashion. Hiring a property manager and owning your investment business as an LLC carries significant advantages. As always, you have to play by the rules of the tax guidelines, but the work is well worth the effort to improve your income for your rental property.
The pros at Core Real Estate Properties are ready to help you with your Fort Myers short-term rental property needs. Core Real Estate Properties has properties available and offers management services; we make investing easy. Contact Core Real Estate Properties today at 239-360-3176.