Information from those who rent their homes

[Leshook]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

[Packer Fan]

In normal times, you really just break even. If you are going to move in a few years, it is an effective strategy to beat inflation. If you are not going to live here, you make money when you sell. Maybe 5-6% a year. For some reason, everyone thought for the last year they could get rich, so they bought up a lot of property and are now renting them out. High season is still tight, but the rest of the year has seen less and less activity. I have 2 rentals, but I bought at much lower prices and mainly as an inflation hedge. How you make much money not with higher prices and higher interest rates is beyond me.

[CoachKandSportsguy]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

If you have been researching, do you have any experience being a slumlord?

What are you assuming for an occupancy rate?
What target market renters are you expecting?
Are you managing the property or are you having a PM perform that duty?
What high season low season rates are you expecting?
What are your annual expenses to cover?
Furnished or unfurnished?
annual lease or IDIQ? individual dates individual quotes?
Have you even searched your answers on here? of which there are many answers to your questions. .

as a long time corporate financial modeler amongst other job skills, and a TV slumlord, my intuition says that you don't have any experience with the research part

or maybe I am wrong, but can you answer any of the above questions?

9 more working days until former corporate finance guy

[retiredguy123]

Even if you break even do you really want strangers living in your house? Are you prepared to have a dog running around chewing on things and scratching your floors? If the tenants say it is a service animal, you have no choice. You can't even charge a pet fee. Are you prepared to manage the house from out-of-town? If something breaks, contractors will rip you off. One bad tenant can cost you thousands of dollars in damage repair. If you want to be a profitable landlord, buy a really old, cheap house or houses and rent them on a full time basis. Unless you really need the money, renting a house that you also want to live in is not worth it.

[tophcfa]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

If you are willing to rent to dog owners and include a decent golf cart as part of the rental you will have a long line of people begging you to rent your place. Otherwise rentals are a dime a dozen, especially in the non-winter months.

[retiredguy123]

If you are willing to rent to dog owners and include a decent golf cart as part of the rental you will have a long line of people begging you to rent your place. Otherwise rentals are a dime a dozen, especially in the non-winter months.
A dog owner can just tell you it is a service animal and you cannot refuse to rent to them or charge an extra fee. They don't even need to tell you in advance. That is the Federal ADA law.

[Robbb]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

As someone who has watched the rental market for some time, I can say its a very interesting market. There are really two narratives, one is that renters will pay whatever is asked and the housing inventory is way below the rental market demand. The second one is everyone on the planet has their home up for rent and the market is beginning to catch up. Currently on one web site alone there are 38 homes for rent for the the prime winter months of Jan to April. IMHO the day of getting 6 to 10K per month for a 3/2 are long gone, unless you get a foreigner who doesn't understand the market.

[npwalters]

If you have been researching, do you have any experience being a slumlord?

What are you assuming for an occupancy rate?
What target market renters are you expecting?
Are you managing the property or are you having a PM perform that duty?
What high season low season rates are you expecting?
What are your annual expenses to cover?
Furnished or unfurnished?
annual lease or IDIQ? individual dates individual quotes?
Have you even searched your answers on here? of which there are many answers to your questions. .

as a long time corporate financial modeler amongst other job skills, and a TV slumlord, my intuition says that you don't have any experience with the research part

or maybe I am wrong, but can you answer any of the above questions?

9 more working days until former corporate finance guy

Your response was clearly meant to be snarky but I'm still curious why you label it "being a slumlord".

[Papa_lecki]

If you want to lock in your retirement house at 2023 prices, to use ina few years, renting is great.

More than likely, you’ll meet your cash flow.

With tax depreciation and writing off the expenses, you wont pay taxes on the income, most likely generating a loss carry forward, to use when you sell, to defer capital gains.

[npwalters]

We rented our home furnished for the 3 years that we still lived and worked in TN. We bought at a reasonable price and furnished it with excess from our home and good items bought second hand. It was available year-round but usually was only rented 4 or 5 months out of the year; the high season.

We did use a realtor/manager since we were not on site. The first one was terrible and we fired them after 8 months. The second was much better.

Bottom line is we paid for the mortgage, utilities, amenity fee, and all the related expenses (including the furniture we bought) from the fees collected during those 4 or 5 months it was rented. We used the home for 2 or 3 weeks at a time when it was not rented. We did not have damage or any significant issues during those years. We probably were lucky in that respect.

We took it off the rental market, sold most the furniture in the house, and moved in full time when I retired.

[OrangeBlossomBaby]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

How remarkable! Someone posted the EXACT SAME QUESTION - same words even - on one of the Villages Facebook pages! Around 4 months ago. There were dozens of responses too.

The general response was: don't do it, UNLESS you don't care about your neighbors or the community in which you have chosen to buy the property. In which case, do whatever you want.

[OrangeBlossomBaby]

A dog owner can just tell you it is a service animal and you cannot refuse to rent to them or charge an extra fee. They don't even need to tell you in advance. That is the Federal ADA law.

Actually - with regards to renting someone else's property, the landlord CAN ask for documentation proving that the animal is a performing a service for a disabled person. That is one of the few exceptions to the rule.

Here's the Sunshine law about emotional support animals, specifically:

Statutes & Constitution
:View Statutes
:

Online Sunshine (http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0760/Sections/0760.27.html#:~:text=(a)%20Deny%20a%20reasonable%2 0accommodation,eliminated%20by%20another%20reasona ble%20accommodation).

[retiredguy123]

Actually - with regards to renting someone else's property, the landlord CAN ask for documentation proving that the animal is a performing a service for a disabled person. That is one of the few exceptions to the rule.

Here's the Sunshine law about emotional support animals, specifically:

Statutes & Constitution
:View Statutes
:

Online Sunshine (http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0760/Sections/0760.27.html#:~:text=(a)%20Deny%20a%20reasonable%2 0accommodation,eliminated%20by%20another%20reasona ble%20accommodation).
As I understand it, you can self train your own service animal. So, you can create your own documentation. As a landlord, if your tenant shows up with a dog that they didn't tell you about, you really don't have any option but to let the dog stay in your house, or risk being sued.

[OrangeBlossomBaby]

As I understand it, you can self train your own service animal. So, you can create your own documentation. As a landlord, if your tenant shows up with a dog that they didn't tell you about, you really don't have any option but to let the dog stay in your house, or risk being sued.

But you (the tenant) have to have proof that you (the tenant) are disabled and in need of a service animal. No, there is no official documentation for the animal. But there is official documentation to prove that yes, a disabled person really is renting and occupying this rental property.

If YOU are not disabled, then YOU don't need a service animal and therefore they can refuse to allow the animal to live in the unit.

[CoachKandSportsguy]

Your response was clearly meant to be snarky but I'm still curious why you label it "being a slumlord".

if that's how you want to interpret it, that's your prerogative.

mostly hyperbole, maybe a bit malapropism, definitely tropes. . not to be taken literally or personally unless the boot fits

and since I own a rental in TV, that makes me a slumlord as well.

[retiredguy123]

But you (the tenant) have to have proof that you (the tenant) are disabled and in need of a service animal. No, there is no official documentation for the animal. But there is official documentation to prove that yes, a disabled person really is renting and occupying this rental property.

If YOU are not disabled, then YOU don't need a service animal and therefore they can refuse to allow the animal to live in the unit.
Please. As a practical matter, if a tenant has paid the rent, shows up with a dog, and says it is a service animal, the landlord has no choice but to allow the dog to stay, or risk being sued. And, how does the landlord even know there is a dog in the house? Also, there are plenty of lawyers who will sue the landlord. That is a fact and many dog owners know it. And, if you are out of town, how do you demand anything?

[tophcfa]

Please. As a practical matter, if a tenant has paid the rent, shows up with a dog, and says it is a service animal, the landlord has no choice but to allow the dog to stay, or risk being sued. And, how does the landlord even know there is a dog in the house? Also, there are plenty of lawyers who will sue the landlord. That is a fact and many dog owners know it. And, if you are out of town, how do you demand anything?

Any dog owner that falsely claims their dog is a service animal, in order to get special treatment, is a total scumbag and is doing a disservice to those with legitimate needs and a properly trained dog. We have owned dogs practically our whole lives and would never sink to that level. My older brother is totally blind and relies on his professionally trained seeing eye German Shepard for his independence and safety. People faking service dogs really pi$$es me off.

[retiredguy123]

Any dog owner that falsely claims their dog is a service animal, in order to get special treatment, is a total scumbag and is doing a disservice to those with legitimate needs and a properly trained dog. We have owned dogs practically our whole lives and would never sink to that level. My older brother is totally blind and relies on his professionally trained seeing eye German Shepard for his independence and safety. People faking service dogs really pi$$es me off.
I totally agree, but a lot of people are taking advantage of the ridiculous, unenforceable Federal ADA law to take their dogs everywhere they go. I just saw a woman with a little dog running around Publix the other day with a sweater that said "service animal". I asked the cashier if they had a dog policy. She said yes, no pets, but she is not allowed to say anything to the dog owners.

[Sandy and Ed]

Totally agree. Also with today’s prices you would be hard pressed to make much

[Buckseight]

If you are willing to rent to dog owners and include a decent golf cart as part of the rental you will have a long line of people begging you to rent your place. Otherwise rentals are a dime a dozen, especially in the non-winter months.

You don’t really expect your competition to give you an honest answer do you ??
Do your own foot work , and act accordingly . IMHO

[Worldseries27]

Welcome aboard

[Normal]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

This area is literally receiving 1,000s of apartment units and many within the next 30 days:

301 near 466A a mega apartment complex has begun construction

462 in Wildwood there are literally 300 apartments opening up before Aug 1. In addition, “The Cottages” have just opened (not sure of amount). Furthermore, new construction on a housing project next to St Vincent de Paul just broke ground

On 466A directly adjacent to Colony a third party developer just purchased land and got approval for a large apartment complex.

A third party builder has just initiated construction on 501 of several hundred high rise apartment units ( maybe they want to see all the Villages construction and Coleman prison?)


In short, there won’t be much of a housing shortage here. The market will be saturated for some time to come. If you buy, ask yourself if it would even be worth it to rent it out.

[sdeikenberry]

You'll likely only be able to rent it during the high season...maybe December until maybe April. Do not expect to rent it other months because it likely will not happen. You'll be lucky if during the high season you have only one tenant for the whole time. Don't be surprised if you have 3-4 tenants during the high season...perhaps one month at a time. You can restrict your rental to longer periods but will reduce the number of possible renters. If you're lucky to find a longer repeating renter hang on to them...makes your life much easier and you'll find a friend in them who will take care of your place while they're there.

[deborahcme]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

We have a rental that is managed by The Villages Hometown Properties. Yes they take a percentage for management, but worth it to us because we live thousands of miles away. They handle issues/complaints. Answer tenant questions. We started out using our rental for a convenient place to stay when not renting thinking we would move in one day, but found it felt too small, so we've kept it as a rental. On the cost side, in addition to mortgage (if you get one) and taxes, you'll need to cover the cost of TV/Internet, utlities, insurance -- in short every expense you need to cover for any home. You'll also get some of the tax advantages. If you buy turn key, you won't need to furnish, but budget for wear and tear and possible replacement of appliances/furniture. You'll likely just cover costs with seasonal rentals with a bit over but it's a way to earn some money while you are not here. Our experience with Hometown Rentals has been very good. They market and rent and vet the renters and send us reports showing rentals and any maintenance (which we approve beforehand). We've never had a problem, even with those who want to bring their pets. The home has stayed in good shape over five years and has been consistently rented. We started out seeing rentals January March, but that seems to have expanded lately with renters now popping up in December through May. Off season rates are lower, but I wonder if that will change if demand for the non-seasonal months ramps up at some point.

I'm not an expert in real estate, but my sense is that if someone buys a home here to rent expecting to make a pile of cash, they may be disappointed.

[banjobob]

Rentals flourish south rot. 44 buy there

[GizmoWhiskers]

A dog owner can just tell you it is a service animal and you cannot refuse to rent to them or charge an extra fee. They don't even need to tell you in advance. That is the Federal ADA law.
There is a legit difference in a qualified service dog vs an emotional support dog. The difference is in CERTIFIED ADA training.

A lot of people are purchasing an online certificate (with just a doctor note) without actual ADA training to be able to call their pet a "service dog". Establishments are entitled to require ACTUAL ADA training certification service dog status. I know this as my daughter had an emotional support service dog (got an online cert) that was allowed to go certain places. Apartments would rent to her and they could stay in some hotels etc but not other places or hotels or apartments etc as her dog was not an ADA trained service dog.

It all depended on the establishment's willingness to allow her dog to be there as a well needed "service" dog. Sometimes my daughter was denied based on the ADA TRAINING status requirement.

[NoMo50]

Please. As a practical matter, if a tenant has paid the rent, shows up with a dog, and says it is a service animal, the landlord has no choice but to allow the dog to stay, or risk being sued. And, how does the landlord even know there is a dog in the house? Also, there are plenty of lawyers who will sue the landlord. That is a fact and many dog owners know it. And, if you are out of town, how do you demand anything?

Exactly. And, it can get much worse. There is a world of difference between a highly trained, true service animal such as those for the blind, deaf, mobility issues, etc., and the gamut of "emotional support animals" that are all the rage. Plus, those animals are not just dogs. What if your tenant has an emotional support alpaca? Or a pot bellied pig? Or a goat? Better also check up on how to legally evict a tenant. Once someone moves in, and establishes your house as his/her residence, getting them out is a process. That process can be lengthy and expensive.

For me, the potential negatives far outweigh the positives. There are other ways to have your money work for you that do not involve so many potential headaches.

[retiredguy123]

There is a legit difference in a qualified service dog vs an emotional support dog. The difference is in CERTIFIED ADA training.

A lot of people are purchasing an online certificate (with just a doctor note) without actual ADA training to be able to call their pet a "service dog". Establishments are entitled to require ACTUAL ADA training certification service dog status. I know this as my daughter had an emotional support service dog (got an online cert) that was allowed to go certain places. Apartments would rent to her and they could stay in some hotels etc but not other places or hotels or apartments etc as her dog was not an ADA trained service dog.

It all depended on the establishment's willingness to allow her dog to be there as a well needed "service" dog. Sometimes my daughter was denied based on the ADA TRAINING status requirement.
Note that there is a difference between service animals and emotional support animals. But, under the Federal law, there is no ADA certification required for service animals. Here is an excerpt from the Government website, ADA.GOV:

"Q17. Does the ADA require that service animals be certified as service animals?
A. No. Covered entities may not require documentation, such as proof that the animal has been certified, trained, or licensed as a service animal, as a condition for entry.

There are individuals and organizations that sell service animal certification or registration documents online. These documents do not convey any rights under the ADA and the Department of Justice does not recognize them as proof that the dog is a service animal."

[westernrider75]

This area is literally receiving 1,000s of apartment units and many within the next 30 days:

301 near 466A a mega apartment complex has begun construction

462 in Wildwood there are literally 300 apartments opening up before Aug 1. In addition, “The Cottages” have just opened (not sure of amount). Furthermore, new construction on a housing project next to St Vincent de Paul just broke ground

On 466A directly adjacent to Colony a third party developer just purchased land and got approval for a large apartment complex.

A third party builder has just initiated construction on 501 of several hundred high rise apartment units ( maybe they want to see all the Villages construction and Coleman prison?)


In short, there won’t be much of a housing shortage here. The market will be saturated for some time to come. If you buy, ask yourself if it would even be worth it to rent it out.


I’m not sure where you are getting your information but there are no high rises going up on 501.

[Normal]

I’m not sure where you are getting your information but there are no high rises going up on 501.

Yes, they are termed multilevel. Not high rise like NY city lol. The development isn’t breaking warp speed either. It makes me wonder if they are getting some side cash to go slow till the Villages sells their units across the street. I would measure to guess they would be like most in Wildwood at 5 story?

[Zenmama18]

A dog owner can just tell you it is a service animal and you cannot refuse to rent to them or charge an extra fee. They don't even need to tell you in advance. That is the Federal ADA law.

You can ask if it's a service animal and if so, what service(s) it has been trained to do. You cannot ask about what the disability is.

[BlueStarAirlines]

The second one is everyone on the planet has their home up for rent and the market is beginning to catch up. Currently on one web site alone there are 38 homes for rent for the the prime winter months of Jan to April. IMHO the day of getting 6 to 10K per month for a 3/2 are long gone, unless you get a foreigner who doesn't understand the market.

Agree. There are several homes that are now up for sale in my village (close to Brownwood) that were owned by investors (close to the one year mark for new purchase). I was told by one that a landlord could still cover most of the annual costs, but the combination of lots of rentals, high interest rates, and increasing costs are making it very difficult. He made it sound like those that bought during\pre-COVID would do okay as homes were significantly cheaper and those without a mortgage.

I agree that I don't see how a landlord could cover mortgage + insurance + Property Mgr + utilities + CDD fees + maintenance buffer each and every month. If its a nice home in a good location you might break even for a few months, but its the longer slow season that will kill you....

[Ski Bum]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

How do you define "the market"? Lots of new building and new rentals in the south. The north has a fixed inventory.

I have two homes in the north that I rent part time. Over the last three years, costs have averaged $18,000 per year, per home. That does not include mortgage interest. It also doesn't include major repairs like roofs and HVAC.

You can easily rent Jan-April for that amount. When you find a good renter, they will return every year. So no worries about dogs, damage, etc. In fact, the people in my homes do minor repairs, clean the windows, maintain the golf cart, etc. The leave the house in better shape than when they moved in. You can find really good people without much trouble.

My neighbors love my renters. I have one January renter, and one March-April renter in each home that return every year.

The downside is you can't use your home during high season.

If you need to make a few thousand dollars more, therein lies the problem. Summer renters are an unknown factor. You'll get families and transient workers in the mix of applicants. Short term renters are a nightmare to manage and a disruption to the neighborhood.

So my conclusion is that it's easy to defer a lot of the cost and come close to breaking even. But don't count on making money, keeping your home in good shape, and keeping the neighbors happy at the same time.

[Mytym4fun]

We purchased our home five years ago and did annual rentals until we just moved in this year. So it is not exactly what you are looking for with the partial year rental. We use The Villages Hometown Property Management. You could call them and they should be able to answer most of your questions. We broke about even after the five years, but it did pay for the repairs and improvements that we would have had to pay out of pocket otherwise, like a new HVAC system. The TVHPM website has a listing of available properties you can look at as well. Good luck!

[OrangeBlossomBaby]

You can ask if it's a service animal and if so, what service(s) it has been trained to do. You cannot ask about what the disability is.

You can, when it involves a potential disabled tenant renting with their animal in a home that you own. That is the exception to the law. You don't have to verify that the animal is a service animal. You MAY verify that the tenant needs one (because he is legally disabled).

[OrangeBlossomBaby]

Agree. There are several homes that are now up for sale in my village (close to Brownwood) that were owned by investors (close to the one year mark for new purchase). I was told by one that a landlord could still cover most of the annual costs, but the combination of lots of rentals, high interest rates, and increasing costs are making it very difficult. He made it sound like those that bought during\pre-COVID would do okay as homes were significantly cheaper and those without a mortgage.

I agree that I don't see how a landlord could cover mortgage + insurance + Property Mgr + utilities + CDD fees + maintenance buffer each and every month. If its a nice home in a good location you might break even for a few months, but its the longer slow season that will kill you....

Most people who buy here, don't get a mortgage.

[OrangeBlossomBaby]

Please. As a practical matter, if a tenant has paid the rent, shows up with a dog, and says it is a service animal, the landlord has no choice but to allow the dog to stay, or risk being sued. And, how does the landlord even know there is a dog in the house? Also, there are plenty of lawyers who will sue the landlord. That is a fact and many dog owners know it. And, if you are out of town, how do you demand anything?

It's called consequences. You can build it right into the lease. Something like:

Pursuant to the ADA law about disabled tenants with service animals and emotional support animals, you can have an animal living here. However we, the landlord, must be informed of this by the date of the signing of the lease, and you must provide proof that you actually qualify to have one of these animals.

If we find out that you brought in an animal with you, and you didn't tell us in advance, then we have the right to kick you and your animal out. That would be a violation of the lease. If you have more than one animal, and you are only required due to your disability to have one animal, we can kick you out, or make you ditch the second animal.

Regardless of whether we authorize you to have an animal or not - any damages caused by any animal living in this property will be repaired by OUR choice of contractors, and paid for by you, within a reasonable period of time.

Lastly, as is within our rights as the property owner - should your authorized and permitted service animal cause destruction or disrepair to our property, we retain the right to toss you both out on your collective keisters.

[CoachKandSportsguy]

Agree. There are several homes that are now up for sale in my village (close to Brownwood) that were owned by investors (close to the one year mark for new purchase). I was told by one that a landlord could still cover most of the annual costs, but the combination of lots of rentals, high interest rates, and increasing costs are making it very difficult. He made it sound like those that bought during\pre-COVID would do okay as homes were significantly cheaper and those without a mortgage.

I agree that I don't see how a landlord could cover mortgage + insurance + Property Mgr + utilities + CDD fees + maintenance buffer each and every month. If its a nice home in a good location you might break even for a few months, but its the longer slow season that will kill you....

Annual cost to maintain: 15K, break even rent = $1,250 per month annual lease. .
Annual cost to maintain: 20K, break even rent = $1,660 per month annual lease. .
Annual cost to maintain: 25K, break even rent = $2,083 per month annual lease. .

2021 Fair Market Rent in The Villages | RentData.org (https://www.rentdata.org/the-villages-fl-msa/2021)

however, this is where one of my original question is critical: target market?
very different rates based upon house, location and target market. .
retirees aren't looking for apartments in Wildwood,
working labor isn't looking for houses in TV (in general, there are always exceptions)

basic part of a start up business plan is the target market and expected income statement:

price per unit
volume of units sold
Gross revenue
cost per unit fixed/variable
Gross margin
annual fixed expenses
operating income

[Michael G.]

I always thought that God had a special blessing for people that choose to be a landlords for whatever reason.

Myself? I could never own to rent and never wanted the responsibility and the grief that goes with it.
I can peacefully sleep through the night without getting a phone call from your renter saying the AC isn't working.

One house for me, and it's the one I live in, thank you very much.

I wish all you a high return on your investment.

[Karmanng]

As someone who has watched the rental market for some time, I can say its a very interesting market. There are really two narratives, one is that renters will pay whatever is asked and the housing inventory is way below the rental market demand. The second one is everyone on the planet has their home up for rent and the market is beginning to catch up. Currently on one web site alone there are 38 homes for rent for the the prime winter months of Jan to April. IMHO the day of getting 6 to 10K per month for a 3/2 are long gone, unless you get a foreigner who doesn't understand the market.

38???? that is NOTHING those numbers are wrong btw

[Karmanng]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

I am a 3rd time landlord.........I bought in TV last year with renters in place that is immaculate!!! I NEVER knew that 2 dogs were living in it when I previewed it. As a landlord here in AZ I specified NO PETS and that can be done..........MY renters came with 2 dogs in TV do I like it? NO? But the dogs are well behaved and my carpet inside is very light but like I said its CLEAN.............Golf Cart If I do another rental there either furnished or unfurnished would I provide a Golf Car? NOPE do not want the hassle of maintence............Would I prefer to do furnished? NOT REALLY as you have to cover ALL bills even if its not rented.......so that means you are not making money...........So yes I prefer long term unfurnished. You wont make as much but you will make some. Case in point I tried to really up the rent on my people as they were really very low on the scale and it was a newer 3 year old home...........BUT I knew to cut them a deal as they are taking care of my home there as IF it was there own...........IF I buy again I may contact them to see what there pricing is to get them back but for the long term.........Am I breaking even? maybe but barely it was not about the $$$ for me this time as much as keepin up with my home so I can move into it and I hope to do so by the end of summer early fall....ALSO IF you rent under 6 months and 1 day you have to pay the tax of 7% which should be built into your price or stated in addition on top of rent......If it's long term there is no need to do this.. .........BTW there are many many facebook sites that you can learn from........Landlords of the villages is one site with loads of info...........Some of those that responded on here I bet were never ever landlords.............its not always peaches and cream when it comes to being a landlord just sayin......and its not always about the $$$$

[Larry P.]

I think a lot of this depends on your expectations. I bought five years ago knowing that I wasn't going to retire for three or four years. I was lucky in that the previous owner left a lot of good, usable furniture so I took pictures and posted the home on villagershomes4rent.com; cost was around $140 per year. I managed everything myself, I found rental agreement and security deposit forms on the internet and used them for every renter. I set up an LLC (under $100) to keep income and expenses separate from my personal stuff. My home rented easily in the "high" season, and had excellent renters from January through April; these same people have become friends and we hang out together when we're all in TV at the same time. Renting for the 3 or 4 months during high season covered my annual mortgage costs, renting any other months was just gravy. I had no other experience being a landlord but found it much easier than I thought; I was able to manage everything from 1100 miles away; you'll be able to find any help or maintenance people online or word of mouth from neighbors. Again, this all goes back to your expectations, I wanted to have income and tax breaks while I was still working and used the rental income to pay for a new roof and HVAC system but I did not have expectations that this would produce a profit. I did not make a profit in any of those years but the carryover losses helped lower my income tax hit. I would do the same scenario in a heartbeat, it was fun and rewarding for me but you have to have a certain mentality to do it. If you or your wife are worriers and are going to stress out about minor things this is definitely not for you, if you're able to roll with stuff you'll enjoy it as much as I did.

[Barborv]

First, If you can purchase without having a mortgage, that would be great. Your money will earn more in the rental income than it will in the bank. Second- Buy a preowned that doesn't have a bond. Rent it long term. Figure out what you would be paying in monthly fees. (insurance, Taxes, Vcdd utilities (probably around $290 for a courtyard villa or ranch) If its long term, you won't have to worry about gas or electric, Wi-Fi, internet, cable etc. You will need to get lawn care and pest control. If you're out of state, its not a problem. It's easy to find people to make repairs . this site is great for that. Good luck.

[Marsha11]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

As a neighbor of people who buy and rent, always feel bad that we will never know the owner at all. It's hard to connect to such a group of renters. I also remember the developer doesn't like for renters. But now it's everywhere.

[dougjb]

If you have been researching, do you have any experience being a slumlord?

What are you assuming for an occupancy rate?
What target market renters are you expecting?
Are you managing the property or are you having a PM perform that duty?
What high season low season rates are you expecting?
What are your annual expenses to cover?
Furnished or unfurnished?
annual lease or IDIQ? individual dates individual quotes?
Have you even searched your answers on here? of which there are many answers to your questions. .

as a long time corporate financial modeler amongst other job skills, and a TV slumlord, my intuition says that you don't have any experience with the research part

or maybe I am wrong, but can you answer any of the above questions?

9 more working days until former corporate finance guy


I believe the OP was asking for input....not rudeness....which is how your post came across....at least to me. When someone asks for help or assistance in TOTV, perhaps it would behoove America's friendliest hometown to help or assist the person. Perhaps you might want to suggest the OP ask the following questions of themselves...not pose it as a know-it-all post.

[tibbetts]

Hi there, we are looking to purchase a home and then rent it part of the year. I’ve been researching, and I’m hoping some would share here or privately if they feel the market is over saturated with rentals? Is it a profitable thing or do you just break even? Is there a certain area that is better for rentals? Thanks so much for any insight!

We are moving to assisted living and selling our home in Woodbury completely turn key, with golf cart, hot tub on enclosed Lani, nice furniture for $350k On a dead end street in an dead end section. Quiet, Fun neighbors with quite a few parties. tibmayo@yahoo.com

[manaboutown]

Housing data shows that Americans still love the 'warm weather' South, expert says (https://finance.yahoo.com/news/housing-data-shows-that-americans-still-love-the-warm-weather-south-expert-says-180745853.html)

[ChrisTee]

You can ask if it's a service animal and if so, what service(s) it has been trained to do. You cannot ask about what the disability is.

Yes Thanks Zenmama.This is correct per our HOA attorneys at 2 different FL properties. Retiredguy also has comments that are in line with what I've heard from legal experts (I am not a legal expert).

As always - don't rely on advice about legal matters given to you by strangers on the internet. There are comments and assertions in this thread about ADA issues that I'm pretty sure are incorrect, so please - seek advice about ADA issues and service animals from a legal expert.

Also - as someone else mentioned these laws exist to protect people with disabilities. *There are many people who have disabilities that are not apparent to us.*PTSD, mental challenges and others. Disabilities can be very challenging and I don't want to add to that. I want to be sure that I don't in ANY way do a disservice to a disabled person by mistreating them. That includes harassing them, questioning them legally or illegally about an animal they have leashed and under their control.

[Robbb]

38???? that is NOTHING those numbers are wrong btw

Reading matters.


"Currently on one web site alone"

[Leshook]

Thank you all so much for all your input! I am not in a place to purchase yet, but I was trying to see if we could rent the majority of winter months while still staying for a few different weeks throughout winter. Seems that more people think long term rental would be best. I will continue to do more research! We owned a rental property near Disney and that was pretty over saturated, but we rented well and broke even. I wouldn’t be looking to make a huge profit. Just wanted to rent to offset costs for the time being until retirement.

[Pricey]

But you (the tenant) have to have proof that you (the tenant) are disabled and in need of a service animal. No, there is no official documentation for the animal. But there is official documentation to prove that yes, a disabled person really is renting and occupying this rental property.

If YOU are not disabled, then YOU don't need a service animal and therefore they can refuse to allow the animal to live in the unit.


I hope to provide some assistance or clarity in this issue.
I offer the information based on working for over 10 years in ADA Compliance in CALIFORNIA, where the laws are sometimes more strict than federal laws; I was required to know the difference.

Below are the applicable federal requirements and helpful(?) notes:

Disabled people are not required to disclose their disability. You cannot make disabled people tell you they are disabled, nor can you make them tell you what their disability is; they have the right to keep this private. This applies to employment, HOUSING, transportation, education, and other areas of life. That is federal law.

Florida law is permitted to be more strict AS TO the disabled person's RIGHTS than federal law, but it must at minimum meet federal requirements pertaining to a disabled person's rights.

To qualify, a service animal must be individually TRAINED to provide a SERVICE to a disabled person. That is federal law.

(Because training can vary greatly from state to state or area to area, and because a person can, indeed, train their own service animal, there is no way to "certify" across the country that any particular training standard has been met. This is unlikely to change and therefore, training must be regarded as being responsive to the disabled person's needs, rather than to a "detached" and varying standard.)

You may ask one or two tasks the service animal is TRAINED to do (a task does not have to identify what disability the person has), but you may not require performance of the task, nor any proof of training, service animal identification, animal vest, tag, or any other training proof. That is federal law.

An emotional support animal or psychiatric support animal is NOT the same as a service animal. That is federal law.

It really is that simple. That's also why it can be so problematic.

People skirting the law by claiming their pet or emotional support animal is a service animal, and who demand the same legal considerations, are the sorts of people who will probably lie or cheat about other issues. These sorts of people have also made it very difficult for genuinely disabled people to be treated fairly and with respect. SHAME on them! (Those are just my personal opinions.)

>SIGH< Such is human nature. Believe me, if it happens in Florida, it happened in California, in spades. And I was required to deal with the legal issues in my professional capacity.

G-d bless you all with good health and good tenants.

[OrangeBlossomBaby]

I hope to provide some assistance or clarity in this issue.
I offer the information based on working for over 10 years in ADA Compliance in CALIFORNIA, where the laws are sometimes more strict than federal laws; I was required to know the difference.

Below are the applicable federal requirements and helpful(?) notes:

Disabled people are not required to disclose their disability. You cannot make disabled people tell you they are disabled, nor can you make them tell you what their disability is; they have the right to keep this private. This applies to employment, HOUSING, transportation, education, and other areas of life. That is federal law.


>SIGH< Such is human nature. Believe me, if it happens in Florida, it happened in California, in spades. And I was required to deal with the legal issues in my professional capacity.

G-d bless you all with good health and good tenants.

Again - this is incorrect. You can find the correct information on the government websites. Here is a summary of the information, found on the ADA Network organization's website (this is a non-government site that exists to support people seeking information about the ADA):

What rights do housing providers and other covered entities have?
When an individual with a disability requests a reasonable accommodation, housing providers and other covered entities have the right to obtain information to determine if the requested reasonable accommodation is necessary because of a disability. When an individual with a disability requests an assistance animal be allowed as a reasonable accommodation, a housing provider can ask the individual to provide documentation so that the covered entity can properly review the accommodation request. If the individual’s disability and the need for the requested accommodation are both obvious, then the covered entity may not request additional information.

Basically - you can say "no pets allowed" in your home. But if someone says "this is not a pet, it's a service animal" you HAVE THE RIGHT to ask the tenant if the tenant has a disability that requires the use of a service animal. If he says yes, you ALSO have the right to require documentation to prove that he has such a disability that requires the use of a service animal. If he provides you with this information, then you must accommodate him with allowing him and his service animal to rent (assuming he is otherwise a qualified candidate for tenancy).

[brianherlihy]

dont do it

[JGibson]

The topic of rentals is very volatile at the moment and some districts may be pressured to reel in short-term rentals.

Also, keep in mind you’re not going to be welcomed with open arms by neighbors if you rent to some bad tenants.

I just don't see this whole rental thing continuing the way it is and anticipate some changes.

Proceed at your own risk.

[RobO178]

One of the issues I haven't seen mentioned yet is insurance coverage on rentals. We had a dozen rentals up north and if our properties were vacant for more than 30 days, we had to switch insurance coverage to a different, much more expensive policy after 30 days of vacancy . The cost was $4k for 6 mos. coverage vs $1k/yr for a regular policy.
Without that upgrade, our insurance would be null/void if there was an issue (fire, theft, etc) and YES, the insurance companies do find out. We had one of our college rental houses robbed during the Christmas vacation holiday on day #35 of it being vacant but rented. The kids went home for Christmas break in early December and the house was robbed in mid-January.
The thieves broke in and stole TV's and all the copper pipes in the house (hot water baseboard heating). If we hadn't obtained the more expensive policy, we would not have been covered for the $21k in damages.

[Normal]

If you count on short term rentals STR to supplement income, I wouldn’t. Todays news paper had yet another incident with…

20-year-old arrested after alleged attack at airbnb rental in The Villages

https://www.**************.com/2023/06/13/20-year-old-arrested-after-alleged-attack-at-airbnb-rental-in-the-villages/

Rentals will likely be getting a remake shortly. Businesses can’t operate from residential homes here in The Villages. All homes are zoned residential. In the state of Florida a “tenant “ changes from”customer” status to tenant after 10 days. If you rent, contracts are typically signed and funds are transferred leaving a perfect trail for opera business.

[Keninches]

Good Luck. There are lots of opinions. We have recently had 2 homes sell and are AIRBNB rentals. Bad News. Multiple renters and cars coming and going all the time. A friend has a rental business with over 200 rentals and business has slowed significantly. Too many homes.
The last thing I will say is renters say they don’t have and dog and you go over for some reason, and guess what? There is a dog or 2.
Again. We have been here 20 years. Seen it all. Good Luck

[MrChip72]

Businesses can’t operate from residential homes here in The Villages. All homes are zoned residential.

It's clearly stated that you can't operate a business that involves keeping inventory on site or customers visiting your home. It appears obvious that the intent is to prevent people from regularly selling stuff out of their home.

Considering The Villages makes some of their money from renting homes (Lifestyle Visits), I don't believe that renting your home out for a couple of months is considered operating a business under their own definition at least..

[Normal]

It's clearly stated that you can't operate a business that involves keeping inventory on site or customers visiting your home. It appears obvious that the intent is to prevent people from regularly selling stuff out of their home.

Considering The Villages makes some of their money from renting homes (Lifestyle Visits), I don't believe that renting your home out for a couple of months is considered operating a business under their own definition at least..

The Villages doesn’t have a signed contract by a buyer before their renting or selling which is their business to begin with. The first contract is initiated after a sale to a private party.

In other words, they are exempt because nothing exists yet.