[mgwano]

Good afternoon all,

I would like to get opinions on buying a place in The Villages and renting the unit out for part of the year. I was thinking about using the Villages Home Town Property Management. I’m from up north in Chicago and being an airline pilot I would have the ability to fly down as frequently as I want. Can I please have some information from residents and people who are currently doing this?

thanks in advance,

Mark

[gadaboutgal]

We have over the last 15 years owned and rented out many villas. It is easy to rent out a patio villa in winter months,if you have 5-6 months rental , that will usually pay for the villa costs the rest of the year--but only if you are willing to do all the work yourself.

However, letting The Villages Property Management handle all for you is costly and you cannot expect to make much if any profit. I would only go this route if you want to purchase for your own enjoyment and use sometime in the future.

Having said all that, the way to actually make the most profit is to purchase, hold, then sell within a reasonable time frame as the rising cost of the villas is the best benefit, at least for now--who knows what future will bring.

[vintageogauge]

We use Hometown, unfurnished long term is 15%, furnished short term I believe is 20% and they take care of any complaints, etc. More importantly is the bond if you are interested in profit. Some villas have much higher bonds than others so checkout all the costs before you make a decision.

[baustgen]

I would say, don't do it. The people who make money on rental units generally live in the Villages and manage their own property. Jan, Feb, and Mar not a problem to rent and where you make your money..A lot depends on the purchase price and carrying costs the balance of the year. Watch out for bond costs.

[valuemkt]

Like any other financial investment, it depends .. I know people that have several units and rent them to long term tenants only.. They pay cash, and consider any net income as a pension annuity. They select the tenants and directly take care of any maintenance issues. On the other end of the spectrum is short term rentals, since you want to use the property as much as you can .. A mortgage and a property management fee with me not choosing the tenants ? Money loser and higher damage potential.
I go on cash flow and Return on investment. With ANY cash outlay I require a MINIMUM of 5-6% on my money.. not including appreciation. So now it;s a math exercise, which I;ve done countless times. So on OPTION A, you;re laying down 200-250K. Will you get $12-15K / year cash return after ALL expenses ? In OPTION B, 20% down is 40-50K, requiring a 2400-3000 /year return. A roof or an HVAC will wipe out several years of potential profits.. Is it worth it ? Remember, on OPTION B, you have 3 and maybe 4 good rental months a year .. perhaps the same months you;d like to be here. Other than that, slim pickings. At the same time, if you;re looking for a nice warm place to crash in between layovers, and don;t care about the cash flow aspect, welcome aboard, the place is great !

[melpetezrinski]

"With ANY cash outlay I require a MINIMUM of 5-6% on my money.. not including appreciation." So, 9% total ROI including historical rate of return on real estate? "A roof or an HVAC will wipe out several years of potential profits." You don't account for say a $1200/year maintenance expense when calculating yearly ROI whether you spend the actual $1,200 or carry it over to the next year?

[rjm1cc]

Rentals can be a good way to make money but I would not want the potential problems that go with it so it could be the greatest investment and I would pass. (I have worked for a small real-estate company that could afford to have employees to handle the problems and that is the way I would go. Not just one distant house.)

[rz5drf]

Another consideration, short term rentals require a 9% tax due to State of Florida each quarter !!

[mamahaffen]

We purchased a designer home 2 years ago. We have Realty Exec. manage the rentals which are usually seasonal (Jan-Apr). They take care of cleaning, problems, taxes, etc at 15%. We don't "make money", but we have a home when we want to visit (3x yearly) and have a place we live ready when we decide to move

[mrf6969]

The only way we have made it work is first you have to be a cash buyer, having a mortgage is out of the question. Second, only do annual rentals as this will be a lot less brain damage and gets you around the Florida hotel tax. Next you must be an active landlord. In other words you need to live here in TV year round to keep an eye on the property. You as a landlord must be willing to do most of the needed maintenance. After all is considered in the way of expenses, property taxes etc., you can realize an annual gross profit of around $10k a year. Been doing this for a few years now and this formula has worked for us.

[Keninches]

Originally Posted by mgwano

Good afternoon all,

I would like to get opinions on buying a place in The Villages and renting the unit out for part of the year. I was thinking about using the Villages Home Town Property Management. I’m from up north in Chicago and being an airline pilot I would have the ability to fly down as frequently as I want. Can I please have some information from residents and people who are currently doing this?

thanks in advance,

Mark

There are so many rentals now with all the new construction.
The real estate prices are Up right now, but who knows what will happen. Been here 16 years watched the market rise and fall.
Worked for a small rental company that toook care of everything for you, which someone mentioned. Don’t go with The Villages Management.
Good luck, it is a crap shoot.

[msilagy]

Any property rental does not owe Florida tax if rented 6 months and 1 day. Under that period rental tax to state and county is due.

[TheWarriors]

Originally Posted by Keninches

There are so many rentals now with all the new construction.
The real estate prices are Up right now, but who knows what will happen. Been here 16 years watched the market rise and fall.
Worked for a small rental company that toook care of everything for you, which someone mentioned. Don’t go with The Villages Management.
Good luck, it is a crap shoot.

Rental market will soon be adding 265 apartments in Brownwood, more competition for rentals.

[davem4616]

Originally Posted by mgwano

Good afternoon all,

I would like to get opinions on buying a place in The Villages and renting the unit out for part of the year. I was thinking about using the Villages Home Town Property Management. I’m from up north in Chicago and being an airline pilot I would have the ability to fly down as frequently as I want. Can I please have some information from residents and people who are currently doing this?

thanks in advance,

Mark

Mark, as Bob Dylan once wrote "The Times They Are A Changing"

Soon the developer will be putting quite a lot of 1, 2 and 3 bedroom apartments on the rental market within walking distance to Brownwood's Paddock Square....to some extent these will compete with the private investor looking to rent a stand alone residence.

The designer-style house directly across the street from me has been a rental from the start...it was built in 2015....the owner has been able to rent it for either 3 or 4 months every year...from January thru March-April...often the same folks came back 2 years in a row

At best she's been breaking even on it, she's bailing now. How much the real estate fees going in / out will bite into her gain due to appreciation is a factor

good luck

With the stock market down like it is...you might get a better return on your investment in a depressed blue chip with a nice dividend

[ficoguy]

Originally Posted by mgwano

Good afternoon all,

I would like to get opinions on buying a place in The Villages and renting the unit out for part of the year. I was thinking about using the Villages Home Town Property Management. I’m from up north in Chicago and being an airline pilot I would have the ability to fly down as frequently as I want. Can I please have some information from residents and people who are currently doing this?

thanks in advance,

Mark

Your best bet is probably a patio villa of some type. The majority of those seem to be rented out.