Vacation Rentals and Property Management, Income and Expenses
Maintenance Cost of an upscale vacation home in Florida can easily amount to $20,000 or even more depending on the type of home and its features (example of $650,000 home on gulf access canal). How renting your home out as a vacation rental can still make you money or at least reach a break even calculation is shown at the end of this page.
The expenses of a vacation rental is nothing an owner just wants to pay just to have a second home in Florida that he will only be able to use for 3 or 4 weeks throughout the year. So the question is how can I run this property in Sunshine Paradise cost neutral or even earn money with it? The answer is easy - place it in a vacation rental program!
To have your property be rented well with as little as possible vacancies there are quite some service providers needed that take care of everything and make sure there are people that see it marketed. If you live abroad or at least far enough away without the chance to take care of the property yourself or supervise the services that are being booked for everything around the home you need a trustworthy company that can professionally maintain as well as rent out the property and offer you a full-care-package.
Important to know: If you buy an apartment or house in a HOA (Homeowner Administration), the possibilities of renting it out are greatly reduced. Many of these HOAs make it a condition that you can only rent 12x a year, for example, but then each individual rental must be at least 30 days or longer. With an average stay of 2-3 weeks for most vacationers, this becomes quite pointless.
The Vacation Rental and Property Management Company
Our partner firm for property management Cape Coral has a longterm experience in this business field and offers a fully integrated service program for your vacation property in Florida. A highly engaged german and english speaking team is available to you taking care of the maintenance of the property as well as maximize your rental income on a daily basis without sacrificing the high quality that is needed to be successful in both areas. This team cares about your home as if it would be their own and they are not shy of taking on another competitor to show what they can and will do.
Highly qualified employees will do everything that is needed to make your vacation rental a successful one: Online marketing, getting in touch with potential vacationers, contract execution with the tenant, Check-in, introduction of the home and explanation of devices and appliances, continuous care of the guest throughout the stay, Check-out, Final walkthrough when tenants leave, return of the deposit, or making sure that potential damages are being repaired, recording usage of power and final statement, professional cleaning of the house including brushing the BBQ-grill, payment of your invoices, lawn and pool care, and much more. Your second home in Southwest Florida will be taken care of in the best possible way and prepared for every guest as if it would be the first.
This guarantees a low maintenance program for you as the owner, great rental income and the insurance that your piece of real estate in Florida will not lose value and experience a longterm appreciation!
The service package of the property management department
- Weekly inspections of the home inside: Check functionality of lighting, air condition and alarm system, water supply and plumbing, windows and doors, check for damages of any kind, infestation of any pest etc.
- Weekly inspections of the home outside: Check of any viewable damages, check of pool area and screen, yard around the house, sprinkler system as well as collecting mail and invoices
- Office tasks: Working on incoming mail, payment of invoices online or sending checks to recipients, complete bookkeeping and monthly detailled statement via email to the owner, inquiring estimates for repairs, ordering of repair or installation jobs, etc.
The service package of the rental department
- Marketing your rental on the company's website as well as on international portals online
- Preparation and execution of rental contracts
- Preparation of the home for incoming guests
- Check-in and Check-out of vacationers
- Determining as well as collecting money for power usage from tenant as well as returning the deposit
- Remittance of the Sales & Tourist Tax to State and County
- Coordination and final check of end cleaning
We offer you a professional, highly efficient and reliable property management. Our goal is to provide our clients a long term profitability of their investment and in combination a first class care and treatment of the guest. We offer preventive maintenance so that your property is taken care of perfectly and will make reasonable and cost saving improvement suggestions as to protect the value of your real estate and to optimize the rentals!
Should you think about a new construction vacation rental in Florida, we will work hand in hand together from the get go. We will include the rental company into all plannings of the home to incoporate real feedback from tenants as well as them to make sure your rental has the best chances to become successful. We do everything to make sure that your purchase of an existing or new construction home will not be one with red numbers afterwards but a profitable endeavour!
Your vacation home in Florida - Income and Expenses
To give you a better idea of how to assess the income and expenses of a vacation home, we have put together 3 examples with their actual numbers. All 3 properties are currently in a rental and management program. The 3 houses are in different locations, on a canal or dry, but they all have a pool. The commission of the rental company and all other rental associated expenses and costs have already been deducted from the average income in the calculation. The occupancy of the individual vacation homes varies of course and also depends on the time that an owner reserves for themselves.
Example 1: 2700 SW 20th Ave, Cape Coral - Contemporary home on a canal with gulf access
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| Property Info: | |
| Year built: | 2018 |
| Bedrooms: | 4 |
| Bathrooms: | 4 |
| Pool / Spa: | Yes / Yes |
| Rear Exposure: | West |
| Boating time into open water: | approx. 100 mins. |
| Living area: | 2,426 sq ft |
| Estimated value today: | $1,100,000 |
| Rental Income 2023: | |
| Occupancy: | 295 days = approx. 81% |
| Average income per night: | $ 239.04 |
| Income: | $70,516.80 |
| Saved expenses for staying in own home (2 x 2 weeks vacation): | $ 9,322.56 |
| Total Income: | $79,839.36 |
| Expenses 2023: | |
| Property Tax: | $12,018.37 |
| Homeowner Insurance: | $ 5,500.00 |
| Flood Insurance: | $ 2,800.00 |
| Property Management: | $ 2,400.00 |
| Phone, Internet & TV: | $ 2,160.00 |
| Lawn and Yard Care: | $ 1,440.00 |
| Pool Service: | $ 1,080.00 |
| A/C Maintenance: | $ 160.00 |
| Water: | $ 1,200.00 |
| Electricity: | $ 1,200.00 |
| Pest Control: | $ 480.00 |
| Total Expenses: | $30,438.37 |
| Net Income before taxes: | $49,400.99 |
Example 2: 618 SW 11th Pl, Cape Coral - Modern home on freshwater canal
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| Property Info: | |
| Year built: | 2021 |
| Bedrooms: | 3.5 |
| Bathrooms: | 2.5 |
| Pool / Spa: | Yes / No |
| Rear Exposure: | Southwest |
| Boating time into open water: | no exit into open water |
| Living area: | 1,734 sq ft |
| Estimated value today: | $650,000 |
| Rental Income 2023: | |
| Occupancy: | 240 days = approx. 66% |
| Average income per night: | $ 181.84 |
| Income: | $43,641.60 |
| Saved expenses for staying in own home (2 x 2 weeks vacation): | $ 7,091.76 |
| Total Income: | $50,733.36 |
| Expenses 2023: | |
| Property Tax: | $ 8,622.89 |
| Homeowner Insurance: | $ 3,500.00 |
| Flood Insurance: | $ 1,400.00 |
| Property Management: | $ 2,400.00 |
| Phone, Internet & TV: | $ 2,160.00 |
| Lawn and Yard Care: | $ 1,440.00 |
| Pool Service: | $ 1,080.00 |
| A/C Maintenance: | $ 160.00 |
| Water: | $ 1,200.00 |
| Electricity: | $ 1,200.00 |
| Pest Control: | $ 480.00 |
| Total Expenses: | $23,642.89 |
| Net Income before taxes: | $27,090.47 |
Example 3: 2506 Miracle Pkwy, Cape Coral - Traditional style home on dry lot
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| Property Info: | |
| Year built: | 2005 |
| Bedrooms: | 4 |
| Bathrooms: | 2 |
| Pool / Spa: | Yes / Yes |
| Rear Exposure: | South |
| Boating time into open water: | Dry Lot |
| Living area sq ft: | 2,207 sq ft |
| Estimated value today: | $700,000 |
| Rental Income 2023: | |
| Occupancy: | 225 days = approx. 62% |
| Average income per night: | $ 164.84 |
| Income: | $37,089.00 |
| Saved expenses for staying in own home (2 x 2 weeks vacation): | $ 6,428.76 |
| Total Income: | $43,517.76 |
| Expenses 2023: | |
| Property Tax: | $ 7,489.44 |
| Homeowner Insurance: | $ 3,400.00 |
| Flood Insurance: | $ 1,200.00 |
| Property Management: | $ 2,400.00 |
| Phone, Internet & TV: | $ 2,160.00 |
| Lawn and Yard Care: | $ 1,440.00 |
| Pool Service: | $ 1,080.00 |
| A/C Maintenance: | $ 160.00 |
| Water: | $ 1,200.00 |
| Electricity: | $ 1,200.00 |
| Pest Control: | $ 480.00 |
| Total Expenses: | $22,209.44 |
| Net Income before taxes: | $21,308.32 |
These examples show you that with a well-planned selection of a property and its prior assessment by the rental company, not only can costs be covered, but a profit can be made. Contact me if renting your vacation home is a must. We will then involve the necessary experts to calculate your personal scenario.
These calculations contain the actual figures of the properties mentioned. This does not mean that comparable homes will automatically produce comparable numbers. All numbers can vary and depend on the house, its location and features as well as the amount of maintenance required. This calculation in no way represents a guaranteed rental income and should be assessed individually for each property.
