Tim Cranch wearing blue shirt

Tim Cranch

Ellie Penaranda

What Makes for a Good Rental Property?

Thinking of buying your own investment property? Enjoy it yourself for family vacations and cover your carrying costs with short term seasonal rental income? Sound good? 

We are frequently being asked questions about investment properties and rental properties here in the Naples, Florida area. Buyers want to know what sort of homes rent well, what they can expect for rental income and how to go about making an intelligent decision. For starters you need to answer these basic questions:

  • Are you strictly an investor who is looking for return on investment?
  • Are you expecting appreciation as well as rental income?
  • How long do you intend to own the property?
  • Are you going to use the home for your own vacations and some family time?
  • Are you thinking of renting the home out on an annual or a seasonal basis?

To maximize the gross rental income, properties near the beach that are rented seasonal short term will generate the most amount of income. The scenario is even better if there are no homeowner association restrictions regarding the number of leases per year, a time restriction for the length of a lease or pet restrictions for tenants.

There are very, very few neighborhoods of single-family homes near the beaches that do not have some association restrictions on renting. These single-family home neighborhoods that are located west of Route 41 do not have homeowner association restrictions and can be rented out by the month, the week, or even just for a few days:

Naples Park, Connors at Vanderbilt Beach (canal homes with Gulf of Mexico boating access), Park Shore, The Moorings, Coquina Sands.

Each neighborhood has its own value and respective seasonal rents. If you were to try to boil things down to a formula, the best rental property would be a house with 3 bedrooms, at least 2 bathrooms, a pool, garage, within a walk or bike ride to one of the beaches, and hopefully pet friendly, too. It should be noted in our market area of Naples, Florida, this is the very same combination of attributes in a single-family home that will enjoy the most amount of appreciation in the next few years. Maximizing the rental income AND the appreciation is a great combination.

Here is a little comparison to whet your investment appetite: A $350,000 single-family home or townhouse in Northern Virginia (which can only be rented annually) will bring approx. $23,000 in income. On the other hand, a $450,000 single-family home in Naples Park will bring $45,000 to $75,000 in income – a $1M single-family home in the upscale area of Park Shore would bring approximately $95,000.

Every condominium development has restrictions, although one in particular, Regatta, which is an easy walk to Vanderbilt Beach, allows 52 leases per year. That’s a very liberal policy for condos.

Check out the links below for some excellent investment opportunities on the market today.

Call us direct at (239) 776-5077 for details about the income that each property could be expected to generate on either an annual basis or as a seasonal vacation rental. Even better, make an appointment to view some of these homes in person.

NAPLES PARK (Walking distance to Vanderbilt Beach)

CONNORS at VANDERBILT BEACH (Canal homes within walking distance to beach)

PARK SHORE, THE MOORINGS and COQUINA SANDS (Listed for Less than $1,000,000 and within an easy walk or bike ride to the Naples Pier and beach)

REGATTA (Two blocks from Vanderbilt Beach)