Sanibel Island and Captiva Island are intrinsically transient. Who wouldn’t want to take a week-long trip every year to a tropical Island with no stoplights, bike trails galore, and miles of pristine conserved coastline?
If the thought of purchasing a second home on Sanibel Island or Captiva Island as a short term rental is at the forefront of your mind, below are 5 benefits to consider. Welcome to Paradise!
Higher Income Potential
Short-term rentals can make more money than longterm rentals, plain and simple! Especially in a popular vacation area such as Sanibel Island or Captiva Island. A property that could get $3,000 per month from a long-term tenant can often make more than double that amount as a vacation rental.
Owners generally have less ongoing maintenance with long-term rentals, but there are two sides to this. The owner of a vacation rental will typically have the property thoroughly cleaned between renters (and will pass the cost on to the renter), vacation rentals are generally better maintained. Not only are they cleaned frequently, but because there’s more frequent turnover, it can be easier to identify maintenance issues before they become serious problems.
This is the number one reason many folks want to invest in a short-term vacation rental. It’s a great combination of an investment, and somewhere for the family to go on vacation without having to pay for a hotel. Of course, you purchased your property with income potential in mind, but also with the opportunity to have a place to make years of memories, too!
Ability to adjust pricing
In addition to the higher income potential, owners of short-term rentals have the additional luxury of being able to adjust pricing as seasons change. If inventory is filling up quickly during the High Season, an owner can implement higher rent to maximize profits, and if the Island is slowing down, pricing can also be redirected to reflect market value. Specifically, at Breakaway Vacation Properties, we utilize a highly targeted Yield Management Strategy for all owners.
Many vacation rental owners are entitled to certain tax breaks or even deductible property expenses such as cleaning, maintenance, insurance, and utilities. Because the property isn’t being let long term. Be sure to check your local authority’s rules and regulations on this.