Short term rentals are one of the fastest growing industries, with billions of dollars to cash in on worldwide. Buying a Panama City Beach property and renting it out on an short term rental platform like Airbnb can generate significant income, while building equity in the real estate itself. Keep reading to find out why you should buy a beach house to offer as a nightly rental.
Double dipping on your investment
Real estate is one of the most highly recommended investments, with a virtual guarantee of significant appreciation over time. When you own a piece of real estate and offer it as a rental, you allow someone else to pay your mortgage, double dipping on the benefits of this investment. Not only are you working towards outright ownership of a valuable asset, but you won’t be using your own money to get there.
The combination of property value appreciation and rental income results in significant revenue via a passive income stream. What’s not to love?
Tax benefits
Owning an investment property makes you entitled to substantial tax benefits. You can deduct expenses such as maintenance and repair costs, mortgage interest, marketing expenses, and property management fees, all of which help your bottom line.
Owning a vacation home
One of the major perks to owning a beach house in Panama City Beach is having access to your own vacation home whenever you want it, but not paying for it when you don’t. You will never have to secure reservations or shop around for appropriate accommodations again. If you decide you want to temporarily relocate or retire to Panama City Beach, you won’t have to look for a home.
Renting out your beach property means having all of the perks of owning a vacation home, without the expense of it falling on you.
Vacation rental tips
Once you decide to purchase a property to offer as a short term vacation rental, it’s important to have the right plan in place.
Property management
Hiring a property manager will significantly lower the time and stress you spend on operating your vacation rental. A vacation rental property manager’s role will vary, but they generally handle the daily operational tasks of a rental property, like collecting rent, managing housekeeping staff, handling repairs, giving and collecting keys, and even marketing the property.
Your property manager can handle the collecting of money and dealing with guests, freeing you up to enjoy the benefits of a passive income stream.
Access to the property
As you look for the ideal property to transform into a short-term vacation rental, one of the major factors is accessibility. Is the property accessible via an easement or private road? Who is responsible to maintain the road? It’s common to assume that a vacation property will be set on a public road, but that is not always the case.
Take your time to make sure you avoid any future headaches, by confirming that parking and vehicle access will be a simple process for your guests.
Zoning
Find out how the location of the potential property is zoned. For example, if you buy a property in a rural area that is zoned in such a way that it can be used for commercial purposes, the ambiance of your rental is subject to change in the future. Buying a property near a pre-existing farm may also present some concerns. Farms have the right to continue their business, no matter the sound or smell created by that process. Consider how that may affect your guests’ experience, and subsequently their satisfaction and reviews of your property.
When you are ready to take the plunge and invest in one of the hottest real estate markets, contact us today! We can help you find the perfect Panama City Beach condo to turn into a thriving income property.
More for Panama City Beach Condo Owners:
7 Things Every Beach House Should Have
Which is Better: Beach House or Beach Condo?