Okaloosa County is becoming a popular tourist destination, attracting over 7.5 million visitors in 2021. The World's Luckiest Fishing Village is a hot spot thanks to our white beaches and beautiful open waters.
If you're a real estate investor in the area, you may be considering the vacation rental model. Are vacation rentals profitable in Destin? Is there a way to earn a passive income for vacation properties?
Today, we're going to talk about the benefits and challenges of owning short-term rentals in Destin and how to earn a passive income doing so. Read on for more.
Choosing Your Vacation Rental Model
There are two typical vacation rental models to choose from that will impact your profits. The first is the owner-occupied vacation rental. This involves renting out all or part of your own residence when it suits your needs and schedule.
The second is the full-time vacation rental. Owner-occupied vacation rentals are less profitable but come with less risk. Full-time vacation rentals come with extra costs upfront because you're buying an additional property. However, you stand to make more money offering your rental all year round.
Meeting Florida Short-Term Rental Requirements
Changing state laws will have an impact on your vacation rental income. We expect a new bill to go into effect in Florida this summer.
Up until now, there were few state laws limiting things like:
- The number of short-term rentals in a specific region
- Who can own vacation rentals
- What kind of properties you can lease out short-term
Soon, state laws may impact the tax status of vacation rentals while also requiring owners to apply for vacation rental permits. The good news is that regulations will decrease competition. The bad news is that it could cut into your profits or limit the number of vacation rentals you can own.
Partnering with Property Management
There is no one-size-fits-all answer to the question of vacation rental profits. It all comes down to the strategies you use to market, price, and maintain your vacation rental. Vacation rental success hinges just as much on reviews as it does on property value, so keeping vacationers happy is a must.
As you can imagine, this isn't a passive job. If you're looking to master the art of vacation rental success without having to make it your full-time job, you need to partner with property managers. The right property manager will take care of everything from listing your property to check-in, check-out, and day-to-day maintenance.
PMI Makes Passive Income for Vacation Properties Possible
Are vacation rentals in Destin still profitable? While changing laws may impact your ability to turn a profit off of vacation properties, they're still appealing accommodations for travelers. If you're looking to generate passive income for vacation properties, you're going to need a helping hand.
PMI Destin is one of the most unique property management companies in Okaloosa County. Our team is made up of real estate experts with experience in buying, selling, and managing residential and short-term properties. Contact us to find out if our strategy is a good fit for your goals.