Sarasota area part-time residents often express an interest in using their home for rental income when they aren’t in town. Whether their home is a second home, a seasonal home, or if they purchased the home for future use, an empty home in paradise offers an owner a unique opportunity to make some extra money.
If you are considering building or buying a new home in Sarasota, Longboat Key, or any of the other barrier Keys – here is some information regarding rentals that you should know.
Annual Rentals: If you have a home that sits empty most of the year, nearly every neighborhood association and town ordinance will allow annual rentals. An annual rental agreement asserts that the tenant will live in the home for at least 12 months, alleviating any concerns from neighbors about “transient” neighbors. Of course, if you choose this option, you will be postponing your own use of the home for the term of the lease. Management of this type of tenant is the easiest, as there is typically only one lease per year.
Seasonal Rentals: If you are looking to rent out your home seasonally, rental income rates are typically highest between Christmas and Easter, when it is snowing and cold around the country. You may be surprised at the number of people looking for 3-6 month rentals. These people are often “snowbirds” who have decided not to purchase their own property. Seasonal tenants who like your property and location often decide to return year after year. Of course, this relegates your own vacation usage to off season.
Rental Restrictions: It is important to determine what the community guidelines are before renting out your property. There are neighborhoods are Siesta Key which allow for rentals as brief as 7 days, but the majority of the Sarasota area sets a minimum rental period of 30 days on single family homes.
However, many neighborhoods set their own rental guidelines which override the 30 day rule. You may find that where you built your home, you are restricted to 3 month or even 6 month minimum rentals. The guidelines also often designate the maximum number of tenants you are allowed per year. For instance, you may be able to rent your home twice per year, for a minimum of 3 months each time.
You may wonder why you do not have the right to rent your own home however you see fit. However, rules are put into place to ensure that the permanent homeowners in the neighborhood are not subject to a parade of unknown tenants, week after week. The guidelines help to provide some peace, stability and safety to the neighborhood.
Rental Resources: There are several ways to manage rentals from afar. Traditionally, people listed their rental home with a real estate agency or professional management company in the hopes of finding a tenant. This is still a viable option for many, as they agency will handle all aspects of the rental.
However, new online services and apps are revolutionizing the industry and allowing homeowners to have more control over the rental process. Sites such as VRBO.com (Vacation Rental by Owner) or VacationRentals.com market your home, provide an availability calendar to those looking for a place, and shares neighborhood and pricing information. Should you rent your home using one of these sites and you live out of state, you’ll need to decide on a way to provide access, and to clean the home after your guest leaves.
Airbnb.com is similar to the above apps, and is fast becoming a favorite way to book vacation properties. These apps often allow you to read reviews about your prospective tenant so that you can see what other landlords and property owners have to say about their stay.
Because Sarasota and Longboat Key are such popular vacation destinations, finding someone to rent your property is the easy part. Be sure to check your community restrictions as to rentals. If your neighborhood is non-deed restricted, call the city to determine which rules apply to your home.
Lindahl Construction has been building quality vacation, retirement and second homes for decades. Call us today to find out how we can help you to build yours.