Do you have a second Florida home that sits unused for portions of the year? If you do, you should consider renting it out. You could offer a long-term lease or short-term stays through sites like Airbnb. However, there are expenses that come with opening your property to renters. Experts say that many first-time landlords don’t realize how quickly the overhead and incidentals can add up.
Here are the biggest expenses that come with renting out your property.
Whether or not you rent your second Florida home, you’ll have to pay the monthly home loan, as well as the bills for:
You will have maintenance costs when renting your second Florida home. This is because many people will be coming in and out of your home. The same breezes that bring people to Florida will tear your screen door off its hinges and slam it into a light fixture. The Florida sandy beach salt will also eat away at the exterior of your house.
How do you plan to let a tenant know your second Florida home is up for rent? They won’t unless you market the property, and marketing costs money. Here are some ways to advertise:
It has become more expensive to get flood insurance since Hurricanes Katrina and Rita. Your flood insurance costs will depend on several things with your second Florida home. This includes:
You may need to buy private flood insurance in certain parts of Florida. Remember, Florida flood insurance policies will not cover damage caused by wind and rain.
Wind and Hurricane insurance is a separate policy in Florida. You will have to buy it from the Florida state insurance pool. This type of insurance may be hard to get in certain hurricane-prone areas and can be pretty expensive.
It is optional to get landlord insurance, but it’s a good investment. Generally, it costs more than a normal homeowner’s policy. It offers a lot of great coverage, however, that will protect you and the property. For instance, this policy will cover the property if it burns down because the tenant starts a fire. If you were renting a property with normal homeowners’ insurance on it, the insurance company would be able to deny your claim.
You need to remember that there is a difference between a landlord policy for a long-term renter and a policy for short-term vacation rentals. Make sure to get the right policy for your property.
You need to understand all the costs that come with renting a home. It will help you determine if buying a second Florida home is the right decision for you. Give us a call if you are planning to buy a home in Florida. We will happily help you find one that fits your needs.