Rental prices

[Muzknme]

Thinking of buying a second home to rent. What price do most get for summer and winter on a 2 bed, 2 bath patio villa? Any advice appreciated!

[VApeople]

There is a website that shows patio villas for rent and has the monthly rental price for each one.

If I gave the name of the website, it would probably be deleted. It should not be hard for you to find.

In my opinion, the price may depend on the location. A villa for rent in Chitty Chatty may not be as expensive as one near Sawgrass Grove.

[Blueblaze]

There is a website that shows patio villas for rent and has the monthly rental price for each one.

If I gave the name of the website, it would probably be deleted. It should not be hard for you to find.

In my opinion, the price may depend on the location. A villa for rent in Chitty Chatty may not be as expensive as one near Sawgrass Grove.

Villagers Homes 4 Rent.

[VApeople]

Villagers Homes 4 Rent.

Yeah, that is the website. We used when we moved here 5 1/2 years ago and needed to rent a patio villa for 6 months until our new house would be ready. Since it was May thru October, we got it for only $1050 per month.

[vintageogauge]

You will have to buy a re-sale as I heard that they now will only sell new homes to owner occupied buyers.

[justjim]

Yeah, that is the website. We used when we moved here 5 1/2 years ago and needed to rent a patio villa for 6 months until our new house would be ready. Since it was May thru October, we got it for only $1050 per month.

We rented a relative new 3 br designer home for 3200.00 a month for the winter months in about that same timeframe. My guess about one third higher now. You can do the math.

[tophcfa]

Pet friendly rentals that include a reliable golf cart with good range are hard to find and will demand a premium. Also, if the rental is close to Championship golf courses, regional recreation centers, a variety of restaurants and shopping options, and a town square, it should be easy to rent.

[Toymeister]

..,.

[thevillages2013]

Thinking of buying a second home to rent. What price do most get for summer and winter on a 2 bed, 2 bath patio villa? Any advice appreciated!

If you are going to rent short term (any lease less than 6months+1day) you will need to collect from your tenant the “hotel” tax and pay it to the state. Also summer rentals by themselves are spotty since there are so many homes available during those months. IMO if you have a 75-80 percent ( of the home’s cost )mortgage you will have a hard time breaking even .

[jwoct0754]

:boxing2:If you are going to rent short term (any lease less than 6months+1day) you will need to collect from your tenant the “hotel” tax and pay it to the state. Also summer rentals by themselves are spotty since there are so many homes available during those months. IMO if you have a 75-80 percent ( of the home’s cost )mortgage you will have a hard time breaking even .

I totally agree with you that it would be hard to break even for summer rentals at $1100 for a villa, you would barely break even with the wear and tear and maintenance and pay your mortgage.

[mydavid]

Thinking of buying a second home to rent. What price do most get for summer and winter on a 2 bed, 2 bath patio villa? Any advice appreciated! The cost of a 2 bed 2 bath patio villa in 2001 started at 70K , a year later 90K both good investment. Today you may well pay north of 225K , may still be good a good investment.

,

[KRMACK55]

Yeah, that is the website. We used when we moved here 5 1/2 years ago and needed to rent a patio villa for 6 months until our new house would be ready. Since it was May thru October, we got it for only $1050 per month.
I rented a 2/2 villa in Fenny for 2 months in may 2019 and made the mistake of it being managed by the villages. It was may charged 1500- included everything. The plumbing burst 4 times because underground pipe exploded from tree roofs. They tried to keep my security but Visa voted in my favor. If you’re bored go for it

[KRMACK55]

If you are going to rent short term (any lease less than 6months+1day) you will need to collect from your tenant the “hotel” tax and pay it to the state. Also summer rentals by themselves are spotty since there are so many homes available during those months. IMO if you have a 75-80 percent ( of the home’s cost )mortgage you will have a hard time breaking even .
Wrong on the hotel tax. Whoever told you that is wrong.

[Blueblaze]

Wrong on the hotel tax. Whoever told you that is wrong.

That would be the State of Florida.

Some landlords claim they include the hotel tax in the rent so their renters don't see it. Some landlords who do this may actually pay the tax they owe, but who knows?

If you ask Florida what they think, they'll tell you that if it's a rental less than 6 months, the tax must be paid, and you must register to pay the tax before you collect it. The only thing that's unclear is whether it's legal to pretend to the renter that there is no tax that must be paid.

[Ele201]

I can attest to the availability of homes for rent in The Villages during the summer. I’ve rented a few near Sumter Landing and one in Chitty Chatty. They’re on Airbnb and the other one, it’s competitor. If you are going to rent short term (any lease less than 6months+1day) you will need to collect from your tenant the “hotel” tax and pay it to the state. Also summer rentals by themselves are spotty since there are so many homes available during those months. IMO if you have a 75-80 percent ( of the home’s cost )mortgage you will have a hard time breaking even .

[CoachKandSportsguy]

If you are going to rent short term (any lease less than 6months+1day) you will need to collect from your tenant the “hotel” tax and pay it to the state.

This is why you don't take advice from random posters on TOTV. This statement is without context and therefore can be interpreted incorrectly.

Hotel tax is collected if you provide hotel services which is in and above just renting the property. It includes, food services and laundry services, as an example.

However, do your market research to figure out who will be your customers, and how do the financials look at 100% occupancy in Jan->Apr and then 50% in the remaining months.

From your original question, you aren't serious, as its very easy to search for rentals with google as if you were searching for a rental, to easily do a financial statement. All the competitive information is available on the internet, including bond costs, real estate taxes, insurance costs, location. etc. Rentals always come down to occupancy rates to figure out break even and return on investment.

We were not profitable in 2020 with 40% occupancy, and this year we are not profitable with 60-70% occupancy, without a mortgage, including depreciation, for ROI

finance guy

[Girlcopper]

That would be the State of Florida.

Some landlords claim they include the hotel tax in the rent so their renters don't see it. Some landlords who do this may actually pay the tax they owe, but who knows?

If you ask Florida what they think, they'll tell you that if it's a rental less than 6 months, the tax must be paid, and you must register to pay the tax before you collect it. The only thing that's unclear is whether it's legal to pretend to the renter that there is no tax that must be paid.
What does it matter if the renter doesnt know theyre paying hotel tax? Rent is rent. Pay it or move on

[Luggage]

But did you have appreciation of true value???

[merrymini]

This market seems to be hot and prices are probably elevated. I was a landlord for decades, albeit in a different environment. Do not believe the formulas people give you. Rentals are work and all kind of expenses. Ultimately, the biggest gain was appreciation of the property after owning it long term. Glad to be free of it all and would not do so again EVER.

[Two Bills]

[QUOTE=CoachKandSportsguy;2004713]This is why you don't take advice from random posters on TOTV. This statement is without context and therefore can be interpreted incorrectly.

Hotel tax is collected if you provide hotel services which is in and above just renting the property. It includes, food services and laundry services, as an example.
[/QUOTE

Florida Department of Revenue, Sales and Use Tax on Rental of Living or Sleeping Accommodations, Page 1

What is Taxable?
Florida’s 6% state sales tax, plus any applicable discretionary sales surtax, applies to rental charges or
room rates paid for the right to use or occupy living quarters or sleeping or housekeeping
accommodations for rental periods six months or less, often called “transient rental accommodations”
or “transient rentals.” Some examples are hotel and motel rooms, condominium units, timeshare resort
units, single-family homes, apartments or units in multiple unit structures, mobile homes, beach or
vacation houses, campground sites, and trailer or RV parks. Individual Florida counties may impose a local option tax on transient rental accommodations, such as the
tourist development tax, convention development tax, tourist impact tax, or municipal resort tax. These
taxes are often called local option transient rental taxes and are in addition to the 6% state sales tax
and any applicable discretionary sales surtax. In many counties, the local option transient rental taxes are
reported and remitted directly to the county; however, sales tax and discretionary sales surtax on transient
rentals are always reported and remitted to the Department of Revenue.

Have paid that tax to our landlord for a good few years.
No services provided.

[jrieker68]

I have a friend looking for a long-term rental between approx. 466A and 466 for around $1300/mo. She works days full time, no pets, very reliable.

[The Caretaker]

As a 20+yr. Retired Property Manager/ licensing Instructor and a 13 yr Village Resident offering services in The Villages for 8 years, here is a little info for you.

Location will determine the most. Updated light bright comfortable beds are second.

Winter: Ranges from 3,900 mo to 3,200 mo. Summer 2,800 mo to 2,500 mo.

Profit depends on who manages your property.

Be very careful if you won’t be living here to look after your property.

Feel free to contact me if you like more information. There are ways to save thousands in fees.

[Ski Bum]

This is why you don't take advice from random posters on TOTV. This statement is without context and therefore can be interpreted incorrectly.

Hotel tax is collected if you provide hotel services which is in and above just renting the property. It includes, food services and laundry services, as an example.

However, do your market research to figure out who will be your customers, and how do the financials look at 100% occupancy in Jan->Apr and then 50% in the remaining months.

From your original question, you aren't serious, as its very easy to search for rentals with google as if you were searching for a rental, to easily do a financial statement. All the competitive information is available on the internet, including bond costs, real estate taxes, insurance costs, location. etc. Rentals always come down to occupancy rates to figure out break even and return on investment.

We were not profitable in 2020 with 40% occupancy, and this year we are not profitable with 60-70% occupancy, without a mortgage, including depreciation, for ROI

finance guy

I don't know why one would include depreciation in a financial ROI assessment. Depreciation is just a tax accounting tool. You recuperate depreciation when you sell the home. I have two 3/2 homes. From as cash flow perspective, Jan-Mar rental pays the mortgage. Two more months and I am cash flow positive, while the home sits and appreciates in value (as it always will over time). I use the homes when they are not rented, in 10 years, we will move to TV full time, so there is value there as well. The point is, rental properties work for certain people, with certain skills and resources, and for others, your money may be best placed elsewhere.

[Mhollowaygleasom]

Wrong on the hotel tax. Whoever told you that is wrong.

I also got the same info from the state of FL. The only reason for non payment is dishonesty.

Guess it depends on how lucky you feel/are.

[The Caretaker]

Sorry but you are wrong. In the business and that is TRUE !

[Car400]

For all landlords out there, please maintain your rental houses! And, as mentioned by another poster, please factor in maintenance on a house you intend to rent out.

I live in a patio villa full time and it angers me greatly to see how negligent these landlords are. I have talked with distraught renters who can NOT get their landlord to maintain the property. Mowing grass once a month in the summer and never having the yard weeded is just unacceptable. For the biggest part, they provide no pest control. And all of this is to be performed per the contract. And then the landlord cries and complains if the renter moves out early.

I’m so angry to see my patio villa neighborhood be treated as though it’s a ghetto. So, if you purchase a home to rent out, please maintain it!

[Daddymac]

Wrong on the hotel tax. Whoever told you that is wrong.

NO,,, HE IS 100% RIGHT,
LESS THEN 6 MONTHS YOU MUST >>>> collect hotel sales tax !!!!
And send it to Florida tax..

[ChristyLeah]

I heard from my realtor that The Villages said "No" to investors on new builds. I guess too many people wanted to rent and this would create a lack of community feeling. You can buy an existing home however. Good luck.

[sowtime444]

This is what the Villages told me about occupancy rates when using them to manage a rental:

"January through March we are usually fully booked. Second season includes October, November, December and April and we usually see activity on 60%-70% of our homes during this time. Summer months, May through September we usually see activity on approximately 30% if our homes."

I calculated that using the Villages service just wasn't worth it. I did not try and calculate renting it on a year lease on my own.

[CoachKandSportsguy]

Florida Department of Revenue, Sales and Use Tax on Rental of Living or Sleeping Accommodations, Page 1

What is Taxable?
Florida’s 6% state sales tax, plus any applicable discretionary sales surtax, applies to rental charges or
room rates paid for the right to use or occupy living quarters or sleeping or housekeeping
accommodations for rental periods six months or less, often called “transient rental accommodations”
or “transient rentals.” Some examples are hotel and motel rooms, condominium units, timeshare resort
units, single-family homes, apartments or units in multiple unit structures, mobile homes, beach or
vacation houses, campground sites, and trailer or RV parks. No services provided.

My apologies, you are correct I read about the tax when we first starting slumlording, and so my response was an incorrect memory about reading the state and local taxes, and the property manager had sent in the payment, so I not writing the check , did not have a good memory recall. Or I read the wrong analysis about the hotel tax, which specifically exempted when not providing hotel services. . .

Sumter county had suspended their 2% tourist tax last year, due to the virus, but I have not followed up whether that is also re-instated. These taxes are like VISA transaction "tax" of 4% which is charged to the renter to cover the expense for the return on investment calculation.

Again, you are correct, and my memory was incorrect.

sportsguy

[CoachKandSportsguy]

I don't know why one would include depreciation in a financial ROI assessment.

Depreciation expense determines taxes paid, taxes paid is part of cash flow, and the ROI is an after tax calculation.

To determine the value of a rental property, you use the after tax discounted cash flow over the next 10-15 years, which is the proper way to determine valuation and ROI. . which comes down to a price per sq foot. . . . as the net present value of a commercial rental property

not all real estate investments have a higher disposal value / sale value . . . you may have, but that doesn't mean all. . . .

finance guy

[tennisaddict6]

Have you considered purchase of a stucco cement pored walls courtyard villa?

[Blueblaze]

This is why you don't take advice from random posters on TOTV. This statement is without context and therefore can be interpreted incorrectly.

Hotel tax is collected if you provide hotel services which is in and above just renting the property. It includes, food services and laundry services, as an example.

However, do your market research to figure out who will be your customers, and how do the financials look at 100% occupancy in Jan->Apr and then 50% in the remaining months.

From your original question, you aren't serious, as its very easy to search for rentals with google as if you were searching for a rental, to easily do a financial statement. All the competitive information is available on the internet, including bond costs, real estate taxes, insurance costs, location. etc. Rentals always come down to occupancy rates to figure out break even and return on investment.

We were not profitable in 2020 with 40% occupancy, and this year we are not profitable with 60-70% occupancy, without a mortgage, including depreciation, for ROI

finance guy

Good point. Never take the word of an online stranger when your money is on the line.

Here's what Florida says on the subject of transient rentals of less than 6 months:

Florida Dept. of Revenue -


Florida Sales and Use Tax (https://floridarevenue.com/taxes/taxesfees/Pages/sales_tax.aspx)

"Transient Rental Taxes

In addition to state sales and use tax and discretionary sales surtax, Florida law allows counties to impose local option transient rental taxes on rentals or leases of accommodations in hotels, motels, apartments, rooming houses, mobile home parks, RV parks, condominiums, or timeshare resorts for a term of six months or less. For a list of local option transient rental taxes, visit the Department's Local Option Taxes webpage.

In many counties, the local transient rental taxes are reported and remitted directly to the local government; however, sales tax and discretionary sales surtax on transient rentals are always reported and remitted to the Department. View a list of the Local Option Transient Rental Tax Rates (Tourist Development Tax Rates) "

[L&DZombro]

Rental prices through TV Hometown Properties are determined by type of home,
such a patio villa, courtyard or designer.

[thevillages2013]

Wrong on the hotel tax. Whoever told you that is wrong.

It’s a fact and just because you aren’t aware of the law doesn’t mean I am wrong

[DaleDivine]

This market seems to be hot and prices are probably elevated. I was a landlord for decades, albeit in a different environment. Do not believe the formulas people give you. Rentals are work and all kind of expenses. Ultimately, the biggest gain was appreciation of the property after owning it long term. Glad to be free of it all and would not do so again EVER.

Had a couple of friends here in TV that were happy when they finally got rid of their villas. They were losing money every year plus they did their own maintenance...
:ohdear::ohdear:

[Blueblaze]

What does it matter if the renter doesnt know theyre paying hotel tax? Rent is rent. Pay it or move on

It matters a couple of ways. First of all, burying the tax hides the true price, which makes it difficult to compare value.

But the part that would bother me as a renter is that I would wonder if I was renting from a tax cheat. If the guy cheats on his taxes, is he going to cheat me, too?

[charmed59]

We use Vacation Rental By Owner (.com) and they add in the taxes when displaying the price of the rental and pay the Florida taxes. A quick scan of what is left for this January shows the villas run about 5K a month including taxes. Owner’s take home on that is obviously much less.

We are lucky to have a great manager that is able to do shorter (3 day) rental periods in the summer allowing our homes to rent most of the off season as well as the winter. After paying him and taxes and taking off maintenance and supplies we pretty much break even. All profit is in the increase in real estate value.

[Barborv]

Besides it being what type of property it is, and if it is lake /golf course view, or close to town centers, it also has to do with the property being rented long term or not. Long term is much less than if you were renting for just the high season. If its long term, is it furnished or not. Does it come with a golf cart.

[vintageogauge]

Had a couple of friends here in TV that were happy when they finally got rid of their villas. They were losing money every year plus they did their own maintenance...
:ohdear::ohdear:

I don't know how they could lose money with a patio villa. Last year a unfurnished PV would have brought in about $17,000 rented for the year. The cost of taxes, bond, insurance, fees, water, and lawn maintenance is between $7,000 and $8,000 per year leaving about $10,000 profit if you don't have a mortgage. Two years ago Patio Villas were selling for under $200,000.00 if you would have a return of 3% on some type of investment you would have only made $6,000.00, at 5% you would break even but would not have had the huge appreciation over the last year or two.

[charlieo1126@gmail.com]

I rented a 2/2 villa in Fenny for 2 months in may 2019 and made the mistake of it being managed by the villages. It was may charged 1500- included everything. The plumbing burst 4 times because underground pipe exploded from tree roofs. They tried to keep my security but Visa voted in my favor. If you’re bored go for it I may be wrong but you seemed to have had more problem or unhappiness In villages then I’ve had in 20 years on and off in 6 homes in fact I’ve never had a problem or been unhappy in all the time I’ve been here, I thought I saw that you moved , I hope your happier

[charlieo1126@gmail.com]

I rented a 2/2 villa in Fenny for 2 months in may 2019 and made the mistake of it being managed by the villages. It was may charged 1500- included everything. The plumbing burst 4 times because underground pipe exploded from tree roofs. They tried to keep my security but Visa voted in my favor. If you’re bored go for it I may be wrong but you seemed to have had more problem or unhappiness In villages then I’ve had in 20 years on and off in 6 homes in fact I’ve never had a problem or been unhappy in all the time I’ve been here, I thought I saw that you moved , I hope your happier

[DAVES]

Homes on vh4r are released for rent one year in advance except Jan -Mar. Those can't be posted until 1 Jan. So what happens is the swarms of new snowbirds scour all listings for the Best location at the best price. And if you look you will see clusters of price. Many owners leave the price that they rented for on their listing.

Don't be that guy. List after all homes are rented for prime season say, April, nine months in advance. You can easily command 10-15% more as you are the only option.

To list the price or not? Not in home rental but my business experience. In my industry we had MAP-minimum advertised price. People would regularly try to find a way around that as people shop on the internet by PRICE. Everyone is selling the same exact thing.
We discovered that people who say call for price many people refuse to call.

No I do not rent. I would expect with COVID evictions for not payment has become more difficult.

[kkingston57]

From April 2018 thru April 2020 we rented out a 3br bath home on golf course. Were told that market was not good. Rented home on yearly lease for $1500 a month. After paying fees and utiliites netted $850 a month(without a mortgage). Not much demand for yearly rental(too hot in the summer). Could have rented seasonal but was told that it would be difficult to get a long(4-6 month) lease and there was demand for 1-2 months lease. It is a crap shoot on making money and you need to look into long term appreciation.

Does have tax advantages. Realtors appear to have great lobbyists.

[TNLAKEPANDA]

I was think about doing the same thing…. However with the current price of the homes right now when you do the math and add up all your costs the return on investment is just too low for the amount of work you will be doing. If you can’t get a net of 8 to 10% you would be better off getting a good fixed investment paying 6 to 7%. There are lots of annuities that give good returns with no risk,

[charlieo1126@gmail.com]

It matters a couple of ways. First of all, burying the tax hides the true price, which makes it difficult to compare value.

But the part that would bother me as a renter is that I would wonder if I was renting from a tax cheat. If the guy cheats on his taxes, is he going to cheat me, too?
Your paying that’s all you have to know.Before Covid I would rent my home in winter and alternate between Miami Beach , Thailand and Hawaii what I do with the rent is not anyone’s business and no one has ever asked

[Experienced Housesitter]

If you currently have a rental available please feel free to contact me. I can also be reached at 407-777-9972 or lovelabels@pm.me. Thank you so much for your time.

[kkingston57]

Two years ago we rented a 3/2 with a golf course view for $1500 a month. Costs made it a poor moneymaker, except for tax implications(these were good). Do not know what market price is now. TV a lot less desirable in the HOT months.

Villa might be more desirable to rent than regular home. WIth rent prices rising now might be a good time to rent. Suspect that there could be demand from an over 55 local person.

[wlasowicz]

I own a patio villa just north of Fl 44 Even though I am a remote owner I do come down at least once a year to do a through cleaning & maintenance I try to keep it maintained to a as new condition as possible because this is a investment Everyone's cost are different but cost keep going up every year We have a mortgage on the property Different areas of the villages will have different rental prices depending on your location , condition of the property and current trend where people want to stay like being close to a town square. I look at the prices of rentals on airbnb and vbro and how cheap per night some people are renting their villa for. You can't get a hotel room for that cheap and they renting a whole villa for less. I don't want to seem mean or discriminator but I don't want to rent for a low price that will encourage more of the rift raft to rent. I think as landlords we should start to look at rising prices to some extent's because my water electric cable lawn pest and handyman cost amenity fee taxes to some degree are going up not down

[Spalumbos62]

I rented a 2/2 villa in Fenny for 2 months in may 2019 and made the mistake of it being managed by the villages. It was may charged 1500- included everything. The plumbing burst 4 times because underground pipe exploded from tree roofs. They tried to keep my security but Visa voted in my favor. If you’re bored go for it

We have the opposite problem working as we speak..we rented to someone for 3 mths, cleaning lady goes in and discovers mildew everywhere. Hvac came, he says it's not the air con, but by the type of damage looks like they used our home as a "grow house". Furniture ruined, pictures, carpets. Very hard to prove, we're working on it. So beware folks

[asianthree]

I heard from my realtor that The Villages said "No" to investors on new builds. I guess too many people wanted to rent and this would create a lack of community feeling. You can buy an existing home however. Good luck.

That would be an incorrect statement. Had nothing To do with renting and lack of community feeling. The reason you sign today owner occupied only on a new build. because homes are at extremely low inventory, and selling before they hit the website.
Those who wanted to retire and live here had very little luck in finding a home.
Inventory is still very low, and even pre owned is selling in first few days, sometimes hours of signing contract.

You can however buy a pre owned and use it as a rental

[Koapaka]

We have the opposite problem working as we speak..we rented to someone for 3 mths, cleaning lady goes in and discovers mildew everywhere. Hvac came, he says it's not the air con, but by the type of damage looks like they used our home as a "grow house". Furniture ruined, pictures, carpets. Very hard to prove, we're working on it. So beware folks


REPORT TO AUTHORITIES ASAP! Do not as the renter place yourself in legal jeopardy for ANY reason.

[charlieo1126@gmail.com]

We have the opposite problem working as we speak..we rented to someone for 3 mths, cleaning lady goes in and discovers mildew everywhere. Hvac came, he says it's not the air con, but by the type of damage looks like they used our home as a "grow house". Furniture ruined, pictures, carpets. Very hard to prove, we're working on it. So beware folksif you didn’t see a spike in your electric bill it wasn’t being used as a grow house , sorry for your problem though