The Naples Florida rental market seems to be on fire right now! There have been so many people searching "rental" related search terms lately. This is another sign that people are going to rent this year rather than purchase. I suspect our renter pool will continue to grow with credit tightening and our economy doing it's thing...fewer people will be in a financial position to purchase in Naples Florida compared to years before but they still want to escape their harsh winters up north so renting in Naples is going to be the next best thing.
There are some outstanding deals to be had in Naples Florida right now for any investors considering pulling their money out of the ever stable stock market. It's been a long time since I've seen properties low enough to consider purchasing and apparently, I'm not the only one thinking that as a few of our investors are starting to step back into the market again.
Let's analyze our tenant prospect base first:
Typically there are four time lines seasonal renters look for rentals.
- If they like the rental they're in currently, they'll try to book it again for the following year.
- A huge group of people begin looking for rentals in the summer time.
- We'll get another group when it starts getting cold up north (October/November)
- The final group will call right before they come down (January, February & sometimes March)
After reviewing a rental list supplied by a colleague, I've noticed that much of
Vanderbilt Beach,
Pelican Bay and
Park Shore are already leased out during season (there are some exceptions for those of you still looking). Homes in
Old Naples and
Port Royal were also booked.
If you're thinking about entering the Naples Florida investment property arena here are a few tips for you to consider:
Ultimately properties offered turnkey (fully furnished including plates, silverware etc.) and remodeled/ready sell at a pretty good premium. You'll net your most money (if you do it right) if you're doing remodels and furnishing yourself. Most condominiums in Naples (especially the hottest areas for sure) will not let you remodel after October 31st and before April 30th. So you need to think ahead and plan on purchasing after high season or during the summer months. Be super smart by identifying your contractor/designer before you close so you can make sure the project will be completed on time and within budget. Regardless of how much experience you have somewhere else, you just wouldn't believe how long it takes to get stuff done down here and how much it can cost if you don't have the right people in place. I see project deadlines missed and budgets blown all the time. Do your homework in advance and although handshakes are nice, get it in writing and work with people who have something to lose...like money or a reputation.
Location is absolute KEY. Yes, if you check out some areas in some of the newer developments or properties located in the eastern portion of Naples...you'll see stars with the types of deals that can be cut....step away! Foreclosures and short sales aren't the key either. Yes, in some cases you can pick up properties at ridiculous values but guess what...your competition to rent is out of this world and you will end up sitting empty...for a LONG...LONG....time. That's why I talked about remodeling. Much of your best Naples Florida product is starting to age. Think along the beach and areas like
Pelican Bay,
Park Shore and
Old Naples if you really want to do something smart.
Pay attention to rental policies. Naples isn't considered a spring break destination in large part due to the rental policy restrictions and lack of spring break activities on or near our Naples beaches. Some people I've talked to in the past have tried to weasel around a communities rental policy with the thought that nobody would know or care....WRONG. Besides making your life a living hell, condo associations can even take you to court over abusing a rental policy so play it smart and choose properties that allow you to accomplish your rental objectives.
Finally, I think the perfect Naples Florida investor for this market is someone who likes and knows the area. They wouldn't mind having a place they could use themselves a couple of weeks out of the year and they're purchasing now because they understand the prices are low and if everything works out like it has every time in the past they realize they can stick a tenant or two or three in their unit to offset the costs until the price of their unit increases again. Now the State of Florida will tell you that I can't guarantee appreciation (that is true by law I can't) you need to determine that all by yourself. I can supply historical MLS facts but you get to come to a conclusion on your own.
Where would I purchase right now if I were considering investing more in Naples Florida? Email me! I have 3 properties I think are simply magical!!!
For more information regarding
Naples Florida real estate, contact me direct!
