Owners' Guide to Renting Basics in Naples Florida

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Some buyers of residential property in the Naples Florida area either plan on renting their property as much as the can, or just for portions for the year, or just for the times when they are not using it. They find rental demand can vary by location, amenities that come with the property, overall value and and other influences. Virtually all residential properties are rentable for the right price, but an owner's rental success can range from zero months to 12 months a year. There is a large demand for rental units, but the supply is even larger.

How to Manage and Rent Your Property in Naples

You can do it the easy way by hiring a real estate firm or management company. Fees generally range between 15% to 20% of the rents collected. They find renter, collect rents, prepare contracts, handle maintenance issues, and arrange cleaning between renters. The good news is that it's 99% hands off for the owner and it is professionally managed. The bad news is that your property is one of many other available units in a pool managed by those companies. When it comes to renting, these companies will do the best they can for every property in their pool.

The alternative is for the owner to rent and/or manage it directly. Owners I've seen having a  successful rental history, are those that activity participate in promoting their unit by:

• Contacting friends and associates.

• Taking out ads in their local newspaper.

• Participate in online rent-by-owner websites.

These owners do paper work and keys through the mail, or through other arrangements. Maintenance can be taken care of through phone calls, home warranty or service contracts.

If you decide to rent and manage the unit on your own, don't expect that you are saving the full 15% to 20% management fee. Renters might expect a discount off of normal rental rates when dealing direct with the owner, unless the supply of units is tight. Hiring a company or managing it yourself is a personal preference. It's very common for a renter that enjoyed the property and thought it was a good value, to reserve the same property for the following year.

Rent Duration

If you plan on buying a property to rent, you better make sure the community allows rentals. Some communities do not allow owners to rent their property. Most commonly, rentals are limited to 3 or 4 different rentals per year, with a minimum rental period of 30 days. But, it can be much more limited than this, or looser. (See examples here) The more restrictive the rental frequency and rental durations in a community, the more likely owners in the community don't care for rental activity. For example, some communities allow weekly rental. In these cases you'll have many owners that bought to rent, not to reside.

Rent Amounts

• Rental amounts are purely based on supply and demand, and rates vary significantly by season, community, location, amenities, views and many other factors.

• Peak rates occur January to March, with March having the highest demand.

• Owners that are allowed to rent monthly, will try for a minimum commitment period of two or three months for the peak season, before accepting a one month rental.

• There are a lot more renters that can afford to to rent a property with a $250,000 market value, than a $750,000 property. But, there are a lot more $250,000 properties for rent, than $750,000 properties.

• The total collected for a 12 month rental, might be 30% or more higher than the rents collected for 3 months in season (January to March).

• Properties offered for 12 month rentals are usually unfurnished, but furnished units are also rented for 12 month periods.

Tax Implications

There are many important tax regulations and implications related to renting real property. Buyers looking to rent should consult their tax advisor.

Buy or Sell through Someone Informed Your Naples Area Realtor Tom Doyle 239.641.4575   Sun Realty. 4980 Tamiami Trail Naples, FL 34103 More About Me

The information presented above is based on generalities within the Naples market and can not be applied to any specific property, purchase, or rental.