Questions To Ask Yourself Before You Invest In A Sarasota Rental Home
If you’re thinking about buying an investment property, now might be the perfect time. As the worst of the pandemic is finally behind us, people are picking up where they left off. Vacations are one area where people are now more comfortable considering than they were last summer. But before you dive headfirst into real estate investing, The Coffey Group recommends that you ask yourself these questions:
Do I want a house or a condo?
When it’s time to buy a rental, your two primary choices in Florida are a house or condo. A house has an advantage if you plan to cater to families who want lots of space and privacy. A condo is typically more affordable and may appeal to a broader demographic. Condominiums, which are Different From Apartments only in ownership, are also often more secure, and some have on-site security and property maintenance.
What’s the best area?
Whether you choose a standalone residence or something in a multi-housing unit, location is key. There are many great neighborhoods within the greater Sarasota area including Longboat Key, Lido Key, and Turtle Beach. Stick to within 20 miles or so of the most popular destinations to ensure that Your Rental is most desirable. You also want to make sure that you’re in close proximity to things like beaches, fine and casual dining, cultural experiences, and, of course, shopping.
Can I afford it?
Buying a vacation home, or even a long-term rental property, may be more expensive than purchasing your primary residence. The interest rates are often higher, and you still have your primary mortgage to consider. Nationwide Recommends taking a close look at your finances, making sure to factor in additional expenses. More importantly, you also want to confirm that you can lease the property and that there is a good market as you may have to prove that you can earn an income on the rental.
Am I cut out to be a landlord?
A landlord is someone that owns the property where other people live temporarily. Whether you choose a long-term rental or a vacation home, you will still need to operate as a business owner. Be Prepared for 1 a.m. phone calls for leaky toilets, loud neighbors, and, if your property is targeted toward vacationers, late arrivals. While a property manager can handle much of this, you must still be ready to make decisions up to and including Signing Eviction Notices or requesting that visitors leave due to bad behavior.
Can I comply with local, state, and federal laws?
Anytime you run a rental, you must comply with rules set forth according to the state and local area. You also need to remain in line with anti-discrimination and ADA regulations. The Herald-Tribune explains that Sarasota is no stranger to Vacation Rental Legislation. It’s in your best interest to get to know the laws before you make an offer
Are the rewards greater than the risk?
Finally, ask yourself if the potential benefits are greater than the downsides. You have an income-earning vehicle that you may be able to use as a primary residence or vacation spot later in life. But if most of your money is tied up in real estate, you may not have the additional funds available to start your own business or pay for your children’s college out-of-pocket. List out the pros and cons, and Move Forward only if the risk is overshadowed by the reward.
Perhaps most importantly, talk to your realtor about the local real estate climate. The Coffey Group can help you make a more informed decision about what to buy and in what location. Remember, you don’t have to go through the process alone — your agent will be your partner through the entire process. When you’re buying a new home for yourself or as a possible source of passive income, Reach Out to The Coffey Group for help in finding the right property at the right price. Contact us anytime on our team line at 941.404.4737.
Image via Pexels
Article By: Shirley Martin