Renting out places in the Villages

[Sonoftuntavern]

This is intended for people who rent out or have rented out their places in the Villages. I understand that some people with places in the Villages may not live there full time. I would appreciate it if you could provide some insights concerning renting out your places in the Villages. Any insights are welcome, but some specific topics are of interest, as follow: Is there constant demand for rentals in the Village? Is it hard to keep a place rented for the majority of the time that you want to rent it? Does demand exceed supply? Is there a source of information that tracks this? How long are typical rentals? Days, weeks, months, years? Is there anything about this to look out for? If I am breaking some unwritten code by asking these questions, please feel free to make witty comments. Thanks.:wave:

[jpvillager]

Check out **** (villages rentals by owner) for a start.

[Babubhat]

A goldwingnut advertiser has faq and listings on its website. See his YouTube videos for the name.

Peak demand is the winter months. Don’t count on homeowners insurance to cover renters.

[keepsake]

Be sure to check ...
I am under the impression that in 2022 and on, the county tax collector wants you to collect a tax if you rent for six months or less. Used to be 30 days. If you do lease for 184 days or more you are exempt from dealing with the local or county people.

[keepsake]

Also be forewarned your homestead status could change. If you are permanent Florida residents in this one home, this could explode down the road.

[coralway]

There is a very active, and useful, FB group of Villages homeowners who rent their properties. They have answers to all your questions. They are a very friendly group. The group is Landlords of the Villages

[asianthree]

Be sure to check ...
I am under the impression that in 2022 and on, the county tax collector wants you to collect a tax if you rent for six months or less. Used to be 30 days. If you do lease for 184 days or more you are exempt from dealing with the local or county people.

Sine 2007 it was never 30 days, what year was that?

[HandyGrandpap]

This is intended for people who rent out or have rented out their places in the Villages. I understand that some people with places in the Villages may not live there full time. I would appreciate it if you could provide some insights concerning renting out your places in the Villages. Any insights are welcome, but some specific topics are of interest, as follow: Is there constant demand for rentals in the Village? Is it hard to keep a place rented for the majority of the time that you want to rent it? Does demand exceed supply? Is there a source of information that tracks this? How long are typical rentals? Days, weeks, months, years? Is there anything about this to look out for? If I am breaking some unwritten code by asking these questions, please feel free to make witty comments. Thanks.:wave:

Need to consider your objective. If looking for some rental $ to cover time when your gone, no big deal. If your seeking as an investment it is not a given, other than perhaps your not carrying a loan on the property, or the loan is minimal. If seeking to rent and cover negative flow with appreciation, this may not be the best time. Some folks who purchased at the height with new homes can testify to such, including closing cost and such.

[Toymeister]

The gold standard of rentals is to get a one percent monthly return on market value of the property.
Considering costs and vacancy rates your RoI runs in the neighborhood of 8 - 10% before considering appreciation.

The problem is one percent is not achievable in TV. Three quarters of that, or less, is more likely for an average investor.

OP, is that enough to peak your interest?

[CoachKandSportsguy]

Consider target renters profile:
over 55, fairly well off, thinking about retirement,
seasonal wanting to get away from cold/winter, one month average, 2 months special, 3-4 months rare
can do this with remote work, doesn't have kids (not a young person or family destination)

or future villagers wanting to rent to either figure out where to live
waiting for their house to be built (want to be nearby)
short term 4-6 months max type renter

or relatives of villagers wanting to visit who don't stay long
holiday timings 1-3 weeks max Thanksgiving / Christmas only . .

Competition:
Marketing brand name of The villages rentals when buying from the developer (owned by developer)
Lifestyle visits, with golf cart
More houses being built/sold (1% turned into rentals)
Houses with closer amenities, golf cart, shorter cart drive to town squares, number of golf courses within cart driving distance < 30 minutes

average cost of a standard house, annualized:
$18-$22 K, including taxes, insurances, bond, all utilities, amenity fee, deed required landscaping maintenance, on premise liability, excluding financing costs, depending upon size and age of rental.

Occupancy rate = 30% to 70%
Break even monthly rate for 4 months ~ $5,000
January -> April high season one renter, if you can get one
Off season =$1,000->$2,000 monthly rates

Just some ball park costs and you can get the rental rates from searching for rentals yourself


YMMV

[karenzeee]

A goldwingnut advertiser has faq and listings on its website. See his YouTube videos for the name.

Peak demand is the winter months. Don’t count on homeowners insurance to cover renters.

That would be Rent From A Villager | Home Rentals in The Villages Florida | Advertise Your Village Rental (http://www.rentfromavillager.com/faq) RFAV is a site for all owner managed rentals.

Rent From A Villager is the company that Advertises on Gold Wingnuts Videos.

[cathiehines]

Join Landlords of the Villages on Facebook. A lot of landlords that are happy to assist.

[Bay Kid]

I bought a 2nd home in TVs but I love my 1st home, great neighborhood, memories, etc. I would prefer to find a good year round tenant for my 1st home. Is there a good management company around and what would they charge?

[Tom M]

Many of the landlords are owners who intend to use the home for themselves someday but aren't ready to spend significant time in the Villages yet. As such, the pure profit isn't as large of an objective as offsetting the costs until they're ready to use. Occupancy rate can be high and of course the prime season Jan-March can get $5k/mo while offseason (Jun-Sept) would be a third of that. I'd say a good rental over the course of a year (rented monthly) is $30 to $34k/yr. Those renting shorter terms can have higher prices but more work and some periods of non-occupancy. Others will only do long-term rentals at a lower rate (often unfurnished). Go to the different rental sites to get an idea of the going rate in the area you're looking for (making sure to look at all seasons, not just prime). Be aware some are looking at this as a business and are charging high rates and willing to have some months unoccupied while others are just looking to offset costs temporarily until they're ready to move to the Villages and may have lower rates.

I have found all months rented for over 2 years. I believe most rentals are either monthly or shorter periods with monthly being quite common.

Looking at the OP, it sounds like you may be interested in renting out when you are not using it yourself. Assuming you will be using it seasonally (during the high times) and wanting to rent out May through September, I'd suggest that you would not be getting much return and perhaps only enough to offset some of your costs. However, if you are using it only for shoulder months and it may be available to rent in January through March, you could nearly write your own price for those 3 months and get a renter.

[Larry P.]

I used villagershomes4rent.com before I retired and was very happy with the results. I was able to get top dollar for Jan-March and was usually able to also rent April and November. A few years I even had renters in the summer months; those were usually couples looking to buy property in The Villages. Renting the three months in the winter pretty much covered my mortgage costs for the whole year, the rest was gravy. Hope this helps you.

[Daddymac]

Be sure to check ...
I am under the impression that in 2022 and on, the county tax collector wants you to collect a tax if you rent for six months or less. Used to be 30 days. If you do lease for 184 days or more you are exempt from dealing with the local or county people.

THE TAXES... The “ Hotel tax “ has been in place for Years. It’s anything less then 6 Months must be paid. And you know the saying.:bigbow: They always get their money. :cus::cus::cus:

[MsPCGenius]

I used villagershomes4rent.com ....

If I understand the concept, this website is limited to advertising your property. What I would like to know is how you handle all the mechanics of the rental process. Do you hire a property manager?

Things that come to mind...
Background check (if any)
Collection of deposits, rent, applicable fees, contractual paperwork
Exchange of keys, gate passes
Required repairs during rental term
Review of home post-rental (to determine if security deposit is returned)
Cleaning house between rentals (and possibly during long-term rentals)

My primary home is out of State so would not want to be on-call 24/7 to a renter. Help me to understand how to make it work.....

[Worldseries27]

check out **** (villages rentals by owner) for a start.
can bedrooms be rented out separately to individuals sharing kitchen lr etc ?

[dougjb]

Never Ever Use Down Home as your property manager.

Their sweet as cherry pie personality is balanced by a complete failure of management and communication. Once they get your signature on the contract, expect absolutely NO return phone calls or emails or texts. They only thing they do is take their chunk of the rent and hand you the rest.

I had a terrible experience with this company. They were nice enough to let me out of their "service" contract. No service at all that is!!! It wound up costing me plenty.

[HandyGrandpap]

[QUOTE=CoachKandSportsguy;2160381]
Competition:
Marketing brand name of The villages rentals when buying from the developer (owned by developer)
Lifestyle visits, with golf cart
More houses being built/sold (1% turned into rentals)
Houses with closer amenities, golf cart, shorter cart drive to town squares, number of golf courses within cart driving distance < 30 minutes

Good post as always Coach, It appears to me that the percent of new homes turned into rentals is higher than 1%, thank you

[Bay Kid]

What do most management companies charge?

[merrymini]

When we first arrived, we looked into rental agencies. Outrageous fees. Between their fees and the tax, there would not be much left, so we rented it ourselves. Since we had had rentals for decades, it was not a problem for us and it worked out beautifully. Do not listen to all those “formulas” for renting, they are not reality, ever.

[ithos]

What do most management companies charge?

10 to 20%.

Summer Lake Realty charges 10%. I have used them three different times and was very satisfied. They have been in business for decades and have always found renters for me.

Summer Lake Realty – Buy/rent in The Villages area (http://summerlakerealty.net/)

[AZ SLIM]

10 to 20%.

Summer Lake Realty charges 10%. I have used them three different times and was very satisfied. They have been in business for decades and have always found renters for me.

Summer Lake Realty – Buy/rent in The Villages area (http://summerlakerealty.net/)

Do they do long term renters or short term for you?
thanks

[ithos]

Do they do long term renters or short term for you?
thanks

Short term for me. They probably do long term too.

[Henryfrakl]

Cannot find Landlord's of the villages on face book

[Packer Fan]

Consider target renters profile:
over 55, fairly well off, thinking about retirement,
seasonal wanting to get away from cold/winter, one month average, 2 months special, 3-4 months rare
can do this with remote work, doesn't have kids (not a young person or family destination)

or future villagers wanting to rent to either figure out where to live
waiting for their house to be built (want to be nearby)
short term 4-6 months max type renter

or relatives of villagers wanting to visit who don't stay long
holiday timings 1-3 weeks max Thanksgiving / Christmas only . .

Competition:
Marketing brand name of The villages rentals when buying from the developer (owned by developer)
Lifestyle visits, with golf cart
More houses being built/sold (1% turned into rentals)
Houses with closer amenities, golf cart, shorter cart drive to town squares, number of golf courses within cart driving distance < 30 minutes

average cost of a standard house, annualized:
$18-$22 K, including taxes, insurances, bond, all utilities, amenity fee, deed required landscaping maintenance, on premise liability, excluding financing costs, depending upon size and age of rental.

Occupancy rate = 30% to 70%
Break even monthly rate for 4 months ~ $5,000
January -> April high season one renter, if you can get one
Off season =$1,000->$2,000 monthly rates

Just some ball park costs and you can get the rental rates from searching for rentals yourself


YMMV

I have 2 rentals and agree with almost all of this except - The Villages management is NOT a factor - have never even heard a renter mention them, they are rediculously expensive, and they only seem to rent the high season.
Also, there are less rentals than their used to be because a lot of people sold when the market was really hot. I was getting calls all the time from realtors wanting to sell my houses (one is my retirement home, the other I plan to sell when I retire and use the proceeds to not take SS until I turn 70).
Occupancy rate - I have averaged 11 months a year on both houses every year for 10 years (6 for the second one since when I bought it). So it is more like 90% but I have repeat renters October-May, and I keep my summer rates where the "summer house tire kickers" will rent from me. I much prefer the house full than empty.

The beauty of renting in TV is the Renters are all upper middle class to upper class retirees - The fix more things than they break. I have had renters change fire alarm batteries and only tell me when they check out.... Its amazing. My 10 year old house looks brand new.

HOWEVER, you are NOT going to get rich. I am currently high income, and I like the tax treatment and the fact that I don't have to worry about cap gains until I sell. I also write off all my trips to florida because I am working on the houses (yes, it IS work). I bought the first house to avoid inflation. I bought the second one to diversify my stocks and bonds - and boy has it. The appreciation has far exceeded expectations.

I have friends who have houses and 4plexes as rentals up north and I would never do that- horror story after horror story. You won't get rich doing rentals in the Villages, but you don't have to deal with crappy renters either.

Bottom line- its great if you are high income and looking to diversify, but would not count on getting rich.

Ed

[Packer Fan]

If I understand the concept, this website is limited to advertising your property. What I would like to know is how you handle all the mechanics of the rental process. Do you hire a property manager?

Things that come to mind...
Background check (if any)
Collection of deposits, rent, applicable fees, contractual paperwork
Exchange of keys, gate passes
Required repairs during rental term
Review of home post-rental (to determine if security deposit is returned)
Cleaning house between rentals (and possibly during long-term rentals)

My primary home is out of State so would not want to be on-call 24/7 to a renter. Help me to understand how to make it work.....

Things that come to mind...
Background check (if any)
Its called the phone - interview the potential tenant. Also, get all your money at least 60 days ahead - downpayment with lease, remainder plus sec deposit 60 days before move in.
Collection of deposits, rent, applicable fees, contractual paperwork
They send a check. Deposits returned by Check, start a seperate bank account. Lease is a word document, they sign and return with down payment, you sign, scan, and return by email.
Exchange of keys, gate passes
Garage code entry, everything on the table when they get there. I send a video ahead of time with all the instructions - how everything works.
Required repairs during rental term
They call - I have a guy for everything, golf cart, sprinklers, plumber, even a garage door guy.
Review of home post-rental (to determine if security deposit is returned)
Thumbs up or down from Cleaning lady by text message
Cleaning house between rentals (and possibly during long-term rentals)
Good cleaning lady - I pay her the $150 3 or 4 days ahead of the cleaning. This is the most critical thing.

Don't make it harder than it is. Almost everything is available on line. I highly recommend Villagers homes 4 rent dot com. They are the oldest and have the most ads. They are the first place people look, but any of the Villages sites are great. Stay away from AirBnB, wrong kind of renters for our market.