When it comes to real estate, the Sunshine State ticks a lot of boxes. Buy-to-let investment in Florida is one of the best in the country and now this type of property is joined by another. According to a recent survey, Florida vacation rental property ranks among the most profitable for holiday lets in the US. In total, the state takes 6 out of the 25 top places.
The key factors
In its 150 Best Places for Vacation Rental Property 2019, Rented.com compiles its annual list of the most profitable spots in the US for holiday lets. The survey takes into account two major criteria: the cost of buying a property and the short-term rental potential. The former includes the price of the home, taxes and maintenance while the latter looks at demand, occupancy rates and local rental regulations.
Florida vacation rental property dominates the listing. In total, metros in the Sunshine State take 6 out of the top 25 positions, 10 in the top 50 and 19 overall. California lies in the second place with 13 destinations, although none of these ranks higher than 44. Texas sits in third position with 9 holiday spots.
According to the survey, the areas offering the best profit are “established vacation destinations and remain affordable family destinations even during economic downturn”. The states of Florida, California and Texas share mild winters. Better weather in the colder months of the year is a major incentive for holidaymakers and snowbirds from more northern states and Canada. They are also the country’s most populated states so have a buoyant local market for holiday lets.
Highest rankings for Florida vacation rental property
The best location for Florida holiday lets is Panama City Beach, in third position this year. It scores 90.5 marks out of a total 100. Rented.com calculates annual rental income to be in the region of US$20,000.
Also ranking high in the best places for Florida vacation rental property are Palm Coast in fifth place with a score of 86.9 and Jacksonville, ranked 12th, with 79.8. Their annual income potential sits at US$33,000 and US$35,500 respectively.
Other destinations in the Sunshine State with good holiday let potential include Navarre – rental income is around US$39,000 in this metro. Kissimmee, home to Orlando, the most popular holiday destination in the US, takes 19th place. Cape San Blas completes the 6 Florida destinations in the top 25 nationwide. Income potential in this metro rises to US$66,500 a year.
What to look for in a holiday let
The survey also includes tips on what to look for in a Florida vacation rental property to ensure savvy investment. It suggests looking at destinations with property prices that offer value in terms of how attractive the market is as a holiday spot. It also recommends getting comprehensive information on your outlay as a holiday let owner. This includes refurbishment and maintenance costs. And finally, potential holiday let owners should investigate regulations regarding vacation rentals, both at local and HOA level.
As well as offering some of the best potential for vacation rental properties in the US, Florida also makes a great buy-to-let destination. Those metros with strong employment, a growing population and buoyant property markets provide the best investment opportunities. The Sunshine State undoubtedly ticks the boxes for short and long-term rentals all round.