Are rental #'s really this crazy?
 

I don't pay any attention to the rental market in The Villages, but this popped up on Facebook today and out of curiosity, I looked.

Rent From A Villager | Rental Homes in The Villages Florida | Advertise Your Village Rental


1500 sq. ft. 3 bedroom/2 baths. I guess it comes with a golf cart. Near the Shallow Creek Golf course and apparently 15 minutes from Sawgrass ... like Sawgrass is a huge draw.

$7000/month for January or February?

Are people really paying that kind of money for rentals in the middle of nowhere?

Checking other 1500sqft 3BR/2BA units on that site shows that no, people generally aren't paying that much (though some are close).

Back in 2021 the off-season rates were about $3K/month and in-season were about $4.5K/month.

Pool houses rent for those rates, and are rarely vacant. But a standard designer seems over priced, no matter where it’s located. Its does list its rented for March.

Then again one can rent a home in Golden Oaks at Disney with 11 bedrooms for $35,000 a month. And has some months rented this high season

I guess so ... Says March is rented. We'll all drive ourselves nuts trying to understand how people spend their money ... likely the March tenant has lots of it. I've seen listings way higher than that for Designer homes not amazingly nicer. Sometimes I wonder if some owners just put their house up for rent for a super premium price and, if someone rents it, then pack up and leave clicking their heels. Good for both sides of the deal!!

I've noticed the same thing, it's weird that south of 44 they seem much higher rent and more occupied than the ones up north. I see a few in the historic and North of 466 that are 2000 a month during the high season. We rented in each area over the past few years, when we were trying to decide on an area to buy, and they all seemed about the same. I think the highest we paid was in the preserve area on Moyer loop.

It's hard to tell what people are thinking.

I certainly could be wrong, but from the wording of the post on Facebook, I suspect the "rented for March", means the owner is using it for that month.

The most popular month for rentals, as the owner if I could really get $7,000 for March would rent a different house for myself and still make a large profit on that house.We know couple of pool homes that rent in the summer for $$$$, and travel to their northern home.

Last time we rented one our homes not as long term was 2015, rent was $4,500 month. Really haven’t kept up on rentals since all our homes were all long term.

Don't kid yourselves!

Posted requests for rent are rarely the rent paid.

People in the Villages think that everyone pays this much money for a rental. For several years, up to a couple of years ago, I was able to rent a beautiful, well appointed 3 bedroom designer home for the month of December for $1500...including a golf cart! After that, I had to pay $1600.

Some landlords I contacted after than turned up their noses at being offered 1500 for December. As it turned out, their rental unit stayed vacant for the month of December. I guess they just liked tossing 1500 away instead of banking it.

By the way, a landlord knows a good tenent when they see one. A renter who does not have any pets, does not smoke, does not have gobs of family members or friends visiting and who would be a steady continuous caring tenant for years to come.

Most landlords realize December is a dead month. They simply cannot give away their rental.

So some will be willing to take in a good tenant so that they can increase their rental income for the year.

If any of you landlords out there want to have a regular, steady, dependable tenant for December, let me know!

If I wanted to convince potential renters that the price was fair, I would say that someone paid already that amount. How would anyone verify it.

Since I read all the responses and they seem to have no idea, I will give you the lay of the land. I have 2 designer home rentals and have been a landlord since 2014. Luckily, I got them before the higher home prices and higher interest rates because being a landlord in TV just does not make financial sense with the current situation.
High Season rents are running about $5800-$6000 for Jan-March, $4500 for April. Off Season depends on the month but ranges from about $1800 in summer to $3500 in Nov. You absolutely have to charge those rents in the high season or you can't make it work. $7000 is a bit gready, but there is such a shortage in high season someone might pay it. At $6000 a month for 2025, I had Jan-April rented on January 14 of 2024. A year ahead. So the supply and the demand support it.

Just to run the house for a year costs over $20K with insurance, upkeep, and taxes, not to mention a new roof every 15 years, golf cart maintenance, etc. That is not counting the actual mortgage some carry and some return on investment. To be honest, when you do the math, you only make money at all when you sell, and I figure thats about 5% a year.

My houses are between LSL and Brownwood, which helps rent the off season, but I would not call Sawgrass "the middle of nowhere".

Those are the facts.
Ed

When you break it down it really is not that bad the way most people rent here. 3 bedrooms which means the house will have at least 6 people in there all armed with guest passes (at least) that can use almost all the amenities for free. I don't know where else you can go in Florida for a month for about 2400 per couple and have access to all the amenities like there are here for 80 dollars a day per couple during the high season. In the meantime, owners who reside here or come down for the winter wait for use of amenities, restaurants etc.

This is a very insightful and detailed look at things. Thank you for sharing.

Unfortunately there is nothing in the Deed Restrictions to keep people from buying a house and turning it into a hotel/motel by the night, or week. Hopefully you don’t buy or live next to the motel and have strangers in and out all the time intruding on your lifestyle and peace during your retirement years. Sadly it’s happening.

For 20+ years before Covid Lockdown, my wife and I spent our winters in TV.
Prices were reasonable, and to our mind a bargain.
Post Covid the world went mad, rentals doubled and more, car rental quadrupled, transatlantic flight costs doubled, making TV no longer a bargain in our eyes.
Miss the place terribly still, but refuse to pay those prices.
Not a problem for landlords however, every thing still seems to be booked for the high season.

The house one over from me is a rental and I’ve never in 3 years seen one person. I only know they’re the by the trash in the driveway. Once one of them did tell my other neighbor my sprinkler head was broken.

Lol, this might be the guy living the double life. This could be a pied-a-terre for his mistress ;-). Maybe he's on the lam from Johnny Law? Maybe escaped the big house? Does he look like Whitey Bulger?

I've met people in the pool who have said they pay 5k a month in high season for a patio villa.

Not. Ncessarily. I rented numerous homes from patio villas to 3 bedrooms. Depends on the season for the rent. Annual rents , unfurnished are cheaper than the furnished seasonals. .

Owning a home and using it for rental is NOT for the faint of heart..

1) The carrying cost of a home with 2nd mortgage is about $35,000 per year (just to keep it alive). Therefore, you need $3,000 per month to break even (assuming you're carrying a mortgage)
2) Costs for everything have skyrocketed (lawn, utilities, insurance, etc). A 2nd mortgage is well north of 6%
3) Rentals elsewhere in Florida are INSANE. Naples rates in "high season" are above $10,000 per month for a shoebox condo
4) Although the supply of houses in The Villages that have been bought exclusively for rentals (real estate is not a great investment tool), these rates on RFAV and VH4R are actually low, compared to Florida coastlines. It's a case of supply and demand and competition.

Thanks for your honesty.

That is crazy! Somewhere in the $4000 range is reasonable and the going rate.

Welcome to TOTV.



Thanks Ed.

Have you been to Sawgrass? Middle of no where. Then again, people buy homes there, so I guess it works for some folks.

There are so many rentals to choose from that one may stay vacant at that price.

I thought most in TV either paid cash for homes or carry a mortgage that benefits their tax return. A second mortgage seems few and far between if at all. Some may have equity line for adding a pool, since refinancing a 2% loan would be insane.
When ever we have added to our new build, just pay cash, no loans involved. Pretty sure we are in the majority in TV.

That said we have had investment properties in TV since 2010, and have never had to negotiate a rent, plus had no less than 29-30 applicants. Those who have investment experience can give honest answers, except for one year, our properties were long term, so different investment compared to short term.

Not true, depending on the district. It’s prohibited in the district our home is located in, but unfortunately the deed restrictions relating to short term rentals are not enforced. Language has changed in the newer districts deed restrictions.

Deed restrictions are by "unit" not by district. You must be in one of the very few "units" that where the deed restrictions specifically mention rentals.

By type of unit within district, not by individual unit. Our districts deed restrictions do not specifically mention rentals, but are very specific about single family usage and not running a business from a home. I had a direct conversation with a representative of the developer, who is charged with enforcing both of those restrictions. He specifically acknowledged that a homeowner who rents their home out short term, WHILE SIMULTANEOUSLY LIVING IN THE HOME, is violating both of those restrictions. The key is the landlord has to be simultaneously living in the home to be violating those two deed restrictions. A landlord not living in the home is free to rent by the night without being in violation of any deed restrictions.

Not "type of unit" but unit number - essentially the neighborhood. The restrictions aren't for CDD 10 and there aren't separate restrictions for patio villas and courtyard villas and designer homes and premium homes. The restrictions are for neighborhoods or areas that were developed together. While I haven't checked, I suspect that there is a separate deed restriction document for each are with a separate bond assessment schedule.

The very specific language in my deed restrictions concerning not running business from a home specifies that you cannot run a business that requires maintaining inventory or customer visits. As I have argued in many past threads, providing a bed and a table is not "maintaining inventory" and the occupant of the home is not a visiting customer. (perhaps I am wrong but it will take a successful court case to show that)

As for "single family," be very careful what you are pushing there. I have had several overnight guests who are not part of my family. I haven't looked into what the law says about the difference between an overnight guest, a longer-term guest, and a second family occupying the home. Be careful you don't argue for a restriction that prohibits you from hosting your friends from back home or a non-married significant other.

How can it be "in the middle of nowhere" if there are homes there? Answer: It's not.

It is called one's moral compass.

…My houses are between LSL and Brownwood, which helps rent the off season, but I would not call Sawgrass "the middle of nowhere".

Sawgrass may not be in the middle of nowhere, but you can see it from there!🤣

It doesn’t matter what I argue if the violated restrictions are not enforced. And I didn’t argue the point, I had a conversation with the party charged with enforcing the restrictions (at least in my district) and he voluntarily acknowledged a paying tenant is entirely different than a non paying house guest (unrelated friend) coming to visit. Their opinion is that a paying tenant, in an owner occupied home, constitutes running a business out of one’s home (the tenant is a customer, not a guest), and it also violates single family usage. He didn’t specifically acknowledge their refusal to enforce the restrictions, he simply stated that enforcement of internal deed restrictions is difficult. However, their lack of action on following up on a formal complaint (to which they acknowledged two violations) is ample evidence of their refusal to enforce the violated restrictions. Further evidence is the changed wording in the newer district’s deed restriction language, which completely eliminates their requirement to enforce such violations and throws the burden back at homeowners.

Basic economics of supply and demand. Jan-Mar is prime time. When we could only find a rental for one month in Mar for $6500 for 2 bedroom, we decided to buy, hired a good Prop Mgr, had it rented in less than a month and has renter thru August and we control when we want to use it. Can’t beat it, join it! What’s the worse that can happen, even if owning is a loss, as long as the loss is no more that what you’d pay for rent, life is good…and hopefully sell with profit.

Villa will do for between $1700 and 1900 at long term residence...will cost $3000 per mo at peak season (jan to mar or april). This will help you make a better & wiseful budget and take a good look at TV before you buy. Designer or whatever a luxury 3 bd house usually overprices so?

I was a landlord for over 25 years and could not be happier after I sold those properties. I am not interested in the hassle and work involved. People overestimate how much a landlord makes and underestimate the effort involved. I like the relaxed retirement life without the hassles.

YES it can be done and demanded as those are the very prime months !!!

NOT if its furnished and all bills covered by the owner plus a golf cart !!!

We are south of the turnpike, 9 minutes from Brownwood, nicely furnished 3 bedroom designer home including golf cart. We have a couple renting out Feb and March for $6500/month and they're repeat renters. We're pretty much in line with the going rate in a reasonable location.

You can find cheaper, but it's usually going to be a a mix of less desirable location, home not in great condition, cheaply furnished, and lacking amenities.

If people want cheaper, I suggest they rent in April/May. The weather is better anyways, and everything is much less crowded.

People that somehow think that rentals are not allowed are oblivious. The Villages certainly wouldn't maintain their temporarily transferable resident ID system if that were the case. They know that a big selling point is people being able to rent out their home for part of the year. My Villages sales agent actively pushed that we could rent out our home when we weren't using it even. The Villages even owns a property management company that only manages rental properties within TV, not to mention that lifestyle visits are essentially a rental.

The wording in the deed restrictions could use some improvement though. I know that it's only meant to prevent people from running a nail salon or sell merchandise out of their garage.

If you thoroughly read the posts in this thread, nobody suggested that it’s against deed restrictions to rent out your home when you aren’t there. What is against deed restrictions, at least in the older districts, is renting out part of your home while concurrently living in the home. People do it anyways, because the two internal deed restrictions being violated are not enforced.