Fort Myers and Cape Coral, Florida recently came in at #2 fastest growing cities in Florida this year. We weren’t surprised. We have seen the recent surge in economic activity in our region. With Fort Myers boasting a population growth rate of 3.48% (which is higher than Orlando, St. Petersburg, and Tampa) Fort Myers shows no signs of slowing down any time soon as visitors continue to become residents.
In 2017, Lee County attracted 4.8 million visitors. Two-thirds stayed in paid accommodations and enjoyed visiting the beaches, dining out, relaxing, swimming, and shopping. In the United States, vacation rentals are now projected to reach $36.6 billion by the end of 2018.
Vacation and annual home rentals can be a lucrative investment for both domestic and international buyers. Investors, consider the following:
Investing in vacation and annual rental homes is just like investing in any other real estate venture—it’s generally a long-term investment—think 5+ years. Perhaps even consider it something you pass on to a family member or child, depending on your goals and objectives.
Areas like Fort Myers, Cape Coral, Sanibel Island, and Naples are consistently topping charts as some of the best cities to visit in Florida. Home prices have still not reached the point where they were before the financial crisis. So, the argument is that Southwest Florida is both a stable market and one expected to grow. There is opportunity for investors to take advantage of the prices in conjunction with the population and visitor growth.
If you’re buying a home to rent to vacationers, the home quality and décor is VITAL to your long-term success. Your guests need to pull into the drive, open the front door, and FEEL like they’re on vacation. Here’s why:
- 74% of visitors to Lee County are returning visitors
- 85% said their purpose for visiting was to vacation
- Only a mere 40% said the quality of their accommodation exceeded or far exceeded their expectation
Only 40%—hello opportunity! Consumers have too many choices in vacation rental options—make yours one that they return to year after year.
The Right Management Company is Everything
As the service provider for the rental of your property, a management company can be the make or break of the success of your vacation and annual home rental property. You want to check your bank account each month and trust that your rental funds have been auto-deposited on time. Look for a company that has compelling and consistent marketing across multiple digital platforms.
Ask them how they will market your listing and their turnaround time!
As prices and demand continue to increase in Southwest Florida, investors have the opportunity to benefit from annual yields and future capital gains.
Contact Us for more information on real estate investment opportunities in Southwest Florida.