Many people are investing in properties located in Florida and using it as vacation rentals. Did this thought ever flash to you? Renting your property is one of the ways to generate extra income. Who does not like to have another source of income?
You may also find cottages for sale in Destin a tempting offer. You can get Destin Florida Real Estate to help you find a property in Destin Florida. The Destin Florida Real Estate deals in all kinds of property, from apartments to condos. You want to invest in a property and rent it to earn extra income, but don’t know about the risks involved in this field and where to start.
If this is holding you back, then you are at the right place. Buying a property in Destin and using it as a vacation rental is a clever idea and substantial investment. However, it can turn into a horrible one if not handled properly.
There are many factors you need to consider to make sure you will not have to face any surprises in the future and to make sure to have the best protection for your investment. Let’s talk about the process of renting a property with some essential steps.
Choose the right location
You need to have a property before you plan on renting it. However, owning a property in Destin Florida is not sufficient to guarantee the success of the investment. A property can attract visitors and renters. It simply needs to be an attractive location.
To make sure, you need to look for properties in areas surrounded by or near major beaches, parks, restaurants, museums, boutiques, shopping areas, or any key tourist destinations. In other words, you need to find a property in a location where people come looking for a place to rent, rather than putting your hard-earned money into a property in the middle of nowhere.
Having an experienced real estate agent by your side will help you in making the right decision. A reliable real estate agent will not only help you pick the best location. They will also help you to complete the paperwork for the process. An agent will prevent you from overpaying by estimating the actual value of the property. They will also explain how much things will change once you start renting your property.
Opt for what people look for in a rental property
After location, another crucial aspect is the guest experience. It means experiencing relaxation and comfort. In some cases, the experience of luxury and prestige. Make sure your property has attractive features like –
- Spacious bedrooms
- Spacious bathrooms
- A pool
- A garden
- A nice view
- A well-designed interior
You can also think about upgrading your property if you find a need for it.
Adhere to the law and regulation
The compliance with the law includes the state’s law and the policies and restrictions enforced by the homeowners’ associations. It is better to adhere to the law and regulations instead of getting fines and sanctions.
Apply for lodging license
You can’t start renting your property without applying for a hotel or motel lodging license. The cost of the permit may vary. It depends on different factors like the location, the size of the property, and the date of the application. Whether you pay a half-year fee or a full-year fee will depend on the time of the application.
Getting the license means your property, going to submit for safety and sanitation inspection. The inspection will take place after you apply and pay your fee for the license. On the other hand, a license application serves as confirmation. It confirms your property is following the current safety laws like swimming pool safety equipment.
Don’t forget to get the insurance
The protection of your property is incomplete without insurance. You need to ensure your property against prospective damage such as smoke, fire, hail, wind, theft, and vandalism. You can manage some minor damage by asking for a security deposit from the guests.
However, keep one thing in your mind, most insurance policies don’t cover damages from events such as floods and tsunami, standing water, and various other sources of water. Extreme circumstances such as acts of war or nuclear events are also not a part of most policies.
Hire a manager for the property
Hiring a manager for managing your property is especially important if your permanent house is not in the same city or state. You will find it difficult to manage from a faraway place. Hiring a management company is the best idea because of many reasons. Firstly, a management company plays a huge role in advertising.
They make sure tourists know about your property. It simply means getting more guests and making more profit. At the same time, a management company takes care of many things, such as maintenance and protection of the property. They also manage the arrival and departure of the guests.
While talking about the protection of your property, you need to pay attention to the tenant agreement. An unsatisfied tenant can also create a lot of problems and negative reviews for your property. You need to set a few house rules about overnight guest policy, parking, laundry privileges, pets and smoking, phone, cable or internet connection, entering their room, waste collection, and recycling.
Establishing clear rules will save you a lot. It will make things much easier for you to handle your tenants. The process of purchasing property and renting a property in Destin is tiring and complicated. Make sure you choose right location and complete all the required processes for smooth functioning. At the same time, keep good assistance around you.
You can manage things with proper planning and proper assistance. Having a good real estate agent and a good property management company by your side will make your mind at ease. At the same time, a good lawyer by your side will help you with all the legal proceedings and inspections.