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I’ve heard some variation of the “I just want to break even” many times over the years as new buyers embark on a search for a beach condo. Many buyers of oceanfront condos who don’t plan to reside in the unit hope to generate some income from their unit when they’re not using it. This is entirely possible in most condo complexes. The exceptions are those condos with long minimum rental restrictions. If a complex has a one year minimum rental period, of which we have quite a few like Xanadu or The Constellation, an owner’s plan to stay in the unit occasionally is not going to work. Likewise a complex with a six month minimum rental period like Coral Sands or Water’s Edge is going to be difficult to rent if the owner plans to use it during our high season between around Christmas through Easter. Finding a renter for at least six months that don’t include the months of December through April is difficult. Some owners get lucky but many sit empty when the owners aren’t there. The same holds true for three month minimum complexes like Solana Shores or Park Place. For owners who don’t plan to use their unit during snowbird season, finding a renter is usually easy and rents are highest during that time.
The chances of finding a renter outside of snowbird season become much more likely with minimum rental periods of a month or less. It’s not unusual to have visitors who stay for at least a month during the summer months. However, the bulk of our summer visitors are here for only a week or two so a one week or less minimum offers the greatest opportunity for income while still allowing some personal use. We have quite a few condo owners who stay in their units for snowbird season and enjoy income from weekly renters the rest of the year.
If you are hoping to buy an oceanfront condo that generates enough income to break even, your best shot at that is with a unit with a minimum rental period of one week or less in a complex like Sandcastles or Cape Winds. With decent management most of these units can cover all expenses and turn a profit. How much depends on how much and when the owners use the unit for themselves. Here’s a related post I did ten years ago with more on this subject.
I hope everyone enjoyed our brief warmup this week. It’s been an unusually cold January. As we get into February I’m expecting a busier season than usual because of snowbirds displaced from their usual winter spots on the west coast of Florida that were damaged or destroyed by the hurricanes last year. Welcome.
On the wisdom of attending timeshare presentations for the free gift, Nisiprius said, “Stealing bait from mousetraps is dangerous, and I have a friend with an unwanted timeshare to prove it.”
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