Everybody Wants to Know – How much can I expect in rent? What are my monthly costs? Naples, Florida and the Naples real estate market enjoy some unique characteristics. One of those characteristics is that our real estate market remains strong throughout the year for sales. Although there are more people around during the winter months to make things seem “busy”, our record of closed sales is distributed throughout the whole year. Many of the serious buyers intentionally come into town during the summer months to negotiate a deal. Another interesting characteristic is that seasonal rentals don’t stop in the off season. Certainly, the highest rents are going to be the winter months but many properties rent during the summer at a reduced rate. You need to pick the right property and you need to have a strategy to achieve your goals.
Gross rental income is going to depend on location, specific neighborhood, proximity to the Gulf of Mexico beaches, type of property, amenities, condition, furnishings, any lease restrictions by a homeowner or condo association and whether or not the property is pet friendly. Examples:
- Single family pool home, pet friendly, with a garage for cruiser bikes and beach equipment in the 500 or 600 block of Naples Park can gross $50,000 to $90,000 (Purchase price $400,000 to $750,000)
- Condo in Regatta near Vanderbilt Beach allowing 52 leases per year with a 7 day minimum would gross from $60,000 to $100,000 (Purchase price $600,000 to $1M)
- Coach home style in the L’Ambiance neighborhood of Pelican Bay typically gets $6,000 to $7,000 per month for short term rentals during the high season but has condominium restrictions on the number of leases and the duration of each lease so the annual gross rent would be around $30,000 to $40,000. (Purchases price $550,000 to $775,000)
As you might imagine, there is a very wide range for ROI depending on your own purposes and preferences. Many, many buyers are investing in a Naples property to use it themselves and covering all of their carrying costs (and then some) with short term seasonal rentals. Not so bad to own a Naples property for your family vacations and make money when you are not using it yourself. A pure investor motivated to rent a property to the maximum will obviously enjoy a healthy cash flow if not occupying his or her own investment property.
For details regarding rental income expectations, call us to talk about specific neighborhoods and properties. Name a price range for your purchase and we will point you in the right direction and provide realistic numbers to make intelligent decisions. Call Tim at (239) 272-4848
What will my monthly carrying costs be for a property in Naples? Basic questions include are you buying with a loan? and are you buying in a neighborhood with an association? or are you buying a condo with quarterly fees? interested in a bundled golf community with mandatory dues? Let’s just look at typical monthly costs for a single family home with no homeowners association:
- As a rule of thumb, estimate your real estate taxes at 1% of the purchase price. (Word of advice – ignore any dollar figure in property listings, even forget about numbers in MLS listings and particularly anything that you see on Zillow).
- Pool cleaning service on a weekly basis will be $90 to $120 per month.
- Lawn maintenance for weekly mowing and plant pruning will run $100 to $150 depending on size of yard and the plants that require regular attention.
- Pest control is usually an annual contract with quarterly visits at around $400 per year.
- A maintenance contract for bi-annual HVAC check up and service will cost $175 per year.
- Your electric bill is going to average $150 per month for 2,000 square feet under air.
- Your water and sewer bill is going to average $175 to $200 per month depending on how often you irrigate the grass and plantings as well as how many people are occupying the property.
The sum of these reoccurring costs are always going to be less than the typical condominium quarterly fees. However, the “lock it and leave it” peace of mind is important to some out of state owners. Again, many investment property buyers are making a personal choice that suits their own lifestyle and priorities. If you are combining your own enjoyment with the benefit of collecting short term seasonal rental income, then you will be choosing a property based on your own needs and wants.
We can nail down your monthly carrying costs with answers to the basic questions and then knowing the type of property in a given location. Email Tim at TimCranch@StepsToTheBeach.com
Call us for more information and advice from full time professional Realtors. After listening and learning more about your goals, we can provide current property listings direct from our MLS system to consider.
Serious buyer? We listen well and will find your own “Piece of Paradise” at the best negotiated price and terms. We are full time professional Realtors who depend on your referrals.
Serious seller? We will give you honest advice about current market conditions and pricing. We will market your home to local, national and international buyers for the best results.
Tim Cranch at 239-272-4848 or Ellie Penaranda at 239-776-5077