Are you considering jumping into the business of short-term rental management in Fort Lauderdale, FL? If so, there are several things you need to consider ahead of time before opening up your first rental.
We've created a brief guide of some useful tips you should review before considering vacation property management as another form of income. Read on now.
1. The Budget You've Set for the Rental
The first thing you need to consider before you start your short-term Fort Lauderdale, FL rental is the budget you will allocate to the property. First, you must determine how much money you can afford to put into the property to buy it.
If you're going to take out a loan, you need to think about the loan payments you will be responsible for paying back each month. For many people, the amount you're able to use towards buying a rental property will depend on the amount you're approved for through your loan company.
It's important that you're realistic about what you're able to afford so you don't overextend yourself each month when it's time to pay back the money you've borrowed for the initial property payment.
2. Rate of Vacancy
When you buy a rental property, one thing you have to think about is your vacancy rate. While it would be great if your property was occupied year-round, there will be some times when no one is in the home.
This doesn't mean you stop paying your rental property's bills. Before buying the property, you should speak with a real estate agent about vacancies in the property.
This will give you better insight into how often your Fort Lauderdale, FL property will be rented by people visiting the area for vacation purposes. You need to set realistic expectations and have a solid understanding of what rentals will look like month to month.
3. Costs of Startup
Several things need to occur when you're starting to act as the property manager for a list of properties. It's important that you maintain the upkeep of the properties if you want to run a successful business.
The costs for a startup that you will need to oversee include:
- Routine maintenance and installation of appliances like washers and dryers
- Ensuring the ventilation system is in working order
- Purchasing furniture and other decor for the home
- Hiring a cleaning company to come in after each rental for a deep clean
Other startup costs are associated with Fort Lauderdale, FL rental properties, but the ones listed above are just a few of them. When you sit down to calculate the budget, you will pay a lot for the upkeep of the home. These monthly costs will need to be factored in.
Do You Want to Get Into Short-Term Rental Management?
If you want to steer yourself towards short-term rental management, there are some things you need to consider ahead of time. The costs of startup and whether you will be approved for a loan to buy the properties you desire to buy.
Schedule a consultation with PMI Matching Property today.
