Lakewood Ranch has quickly become one of the most desirable areas to live in the Sarasota/Bradenton area. It features safe, attractive neighborhoods, a variety of entertainment and recreation nearby, and the convenience of great shopping, good schools, and excellent restaurants.
It’s especially attractive to real estate investors because it’s ideal for short-term vacation homes and long-term Sarasota/Bradenton rental properties.
If you’re trying to decide whether you should rent out your Lakewood Ranch home on a short-term or long-term basis, we have some things for you to consider.
Long-Term Lakewood Ranch Rental Homes Offer Stability
Long-term rental homes have one important advantage over vacation homes that’s difficult to beat: stability.
The consistency of your rental income with a long-term lease will ensure that you have tenants in place, paying rent, and taking care of the property for at least a year. Hopefully even longer if you’re providing an exceptional rental experience.
With this type of consistency, you can budget more accurately. You know exactly how much income you can expect in an annual period. You have stable rental income, planned expenses, and a strategic investment plan moving forward.
You also have the potential to earn more money in the long term with a stable tenant and a lease that’s at least 12 months long. Your return on investment depends on rising rental income and low maintenance costs. Unless there’s an emergency repair that’s needed, your maintenance and cleaning expenses are preventive and routine. You won’t have to do a deep clean every few months between guests.
If there are any disadvantages to a long-term rental property, it’s that you can’t use the home yourself when you want to. You also can’t raise the rent too high on a tenant who is already in place because you don’t want to face vacancy and turnover costs. The longer a tenant is in place, the more deterioration you’re likely to find when they move out.
Short-Term Lakewood Ranch Rental Properties and Income
Short-term leases have their own advantages. You can charge more on a per-night basis with a short-term vacation home. Your property will likely earn more rent on a weekly or monthly basis when you have a tenant who is renting month-to-month or for less than a year.
You also have the benefit of flexibility when you’re renting a home in the short term. Maybe you’d like to use the place yourself for a few weeks every year. You can do that when you don’t have a long-term tenant in place. Many people invest in property in Florida to use as a vacation home or a retirement home. If you want to spend six months out of the year in your investment home, you’ll have to rent out your property to short term tenants.
On the downside, you could find yourself with extremely long and inconvenient vacancies, especially in the summer when a lot of part-time Floridians return home. Finding a good tenant in the short term is great, but if they leave in April and you can’t find anyone to rent your property until the following year, you’ll be left with high vacancy costs and all the risks that come with an unoccupied home.
We can talk about your specific property and whether it’s better suited for a long-term or short-term lease. Contact us at Anchor Down Property Management.