[DrThunder]

I'm new to this site, so I hope I'm posting to the correct forum.

I've just returned from a visit to TV and spent a couple of days with a real estate agent. I found an older home I really like, but my dilemma is this:

I'm old enough to purchase a home in TV, but I'm not planning to retire for another 7 - 10 years, if then. I teach at a college up north and had this idea that I'd like to buy a home there, spend my free time (summers etc.) in Florida when I'm off of school, get used to the place, make friends etc. thru the years. But the reality is that my house would be sitting vacant there during the prime winter months.

The agent tells me it is quite easy to rent out during the January to May time frame, which is perfect for me. I know it's a little nuts to spend summers in Florida and the rest of the year up in the frozen tundra, but it makes a kind of investment sense if it is manageable.

So my question is, just how hard is to truly find renters? I see hundreds of ads and I can't believe that there are really enough renters to go around. I'm on the fence about the purchase price, but if I really could any sort of rental income, it makes a difference in what I'm what I'm willing to spend etc.

I thought someone on this board might have a sense if it is exaggeration to convince me to buy, or are there truly are decent renters out there eager for a home during the winter months?

Thoughts anybody?

[msinglinks]

DrThunder I think you have an ideal way to enjoy the Villages during the summer months until you are able to spend more time in TV. You will have no trouble at all renting your home for January, February, and March. April and November also seem to be likely prospects. On the other hand you would have no trouble at all renting a home for yourself during the summer months at a reasonable price, should you opt to hold off buying for a bit(I know I am not having much luck in renting my home during the summer and suspect I'm not alone). I took the plunge last February as I found a home that my wife fell for and much to my surprise/delight we have been able to rent it out enough to cover the majority of our expenses and some of the mortgage until we are able to enjoy it ourselves in 2 years when I retire.

[BogeyBoy]

We rent out a place in TV. Jan-Mar - no problem. Apr - pretty steady. May - usually. Jun, Jul, Aug, Sep - DEAD. Oct - Maybe. Nov - so, so. Dec, not bad.

We have been very fortunate, but also have reduced our rates for tenants that agree to rent for 6 or more months. (I'd rather have 6 months @ $2000 than 3 @ $3000.)

Good luck, there are a lot of people who want to spend the winter (season) here.

[redwitch]

If you market aggressively, you can probably rent 3-9 months out of the year, especially during high season. However, you need to do it yourself. I've yet to see a rental agent market aggressively enough. Let's face it, an agent is trying to rent several different properties and can't pay enough attention to just one rental property.

From what I understand, I think few actually make a profit but they do at least make enough to pay the expenses, except any mortgate.

There are several reverse snowbirds in TV. Like you, most are teachers and come down during the summer months and, if their property isn't rented, during holidays. There are advantages -- they're here when it's not as crowded, more discounts at restaurants, a slower, easier lifestyle.

You might also want to just consider renting during the summer months. The rental rates are much cheaper during that period and you don't have the expenses of maintaining a home here. You still have access to all of the amenities.

[LuvItHere]

Check out the listings and reservation calendars of TV homes on ****.com (vacation rentals by owner), to get an idea of how rentable they are. I just looked at the calendars of about 20 listings, and almost all were booked for Nov. and Jan. thru April.

There is demand, also, for one-month rentals in the winter, because most owners prefer and get a 3-month renter for JanFebMar. Finding a one-month rental in that time frame can seem almost impossible, and one might have to wait for a cancellation to show up in the ads online and in the Daily Sun.

See:
http://www.****.com/vacation-rentals...o/the-villages

[njbchbum]

you sound as if you are considering a purchase price based on the potential for having the home rented...i strongly suggest against that...one can never imagine the pitfalls that can come their way...what if you don't have a renter - then what do you do...what if your renter trashes your home as folks did to the homeowner in the village of silver lake last winter......

real estate can be a good investment and it can also be a big gamble. good luck with your decision.

[DrThunder]

Good thoughts. No, I wasn't thinking of buying for rental income. I was just trying to balance the equation a little bit. My goal is to have a new life waiting for me when I'm ready to retire full time. I've never liked the thought of just retiring and moving away cold turkey. I'd rather have a genuine second home that I've gotten used to thru the years. The renter idea came more from the reality that I'd be wasting the best months of the year with a vacant home. But being a landlord isn't anything I've ever been crazy about. But with older renters, it seems more plausible. There are risks and I wouldn't go into anything that required renters to get by, but I was curious if there really is the demand for rentals that the agent was telling me exists.

[getdul981]

You might find a market for people like us. We sold our house and moved down here and are renting while the new house is being finished. We're renting for the months of Nov. and Dec. We'll close on our new home on Dec. 13. We plan to have a few things done before we actually move in.

[ducati1974]

We've been absolutely thrilled with how easily we've rented our home and how nice our different tenants have been. I highly recommend the website thevillages4rent.com to market your rental and Villages Home Watch to watch your house for you. Both of these have been outstanding for us and made things easy! Contact us if you have any questions.

[l2ridehd]

Based on your plan and the low cost of renting in the summer months, I would not buy now. And that is very contrary to the advice I usually give about buying. If you have 7 to 10 years until you retire, a better plan would be to rent for the 3 summer months for about half that time. Try different locations and different style homes. That way you will know The Villages a lot better, know where you want to live (it's a big place) and the style home that works best for you. By renting you will also learn about what works best and you will be a better landlord. When you have about 3 years to go, buy and rent it out for the 3 prime months Jan-Mar, maybe pick up one or two extra and get ready to retire in style in a home and location you are very sure is right for you.

[Taj44]

Originally Posted by l2ridehd

Based on your plan and the low cost of renting in the summer months, I would not buy now. And that is very contrary to the advice I usually give about buying. If you have 7 to 10 years until you retire, a better plan would be to rent for the 3 summer months for about half that time. Try different locations and different style homes. That way you will know The Villages a lot better, know where you want to live (it's a big place) and the style home that works best for you. By renting you will also learn about what works best and you will be a better landlord. When you have about 3 years to go, buy and rent it out for the 3 prime months Jan-Mar, maybe pick up one or two extra and get ready to retire in style in a home and location you are very sure is right for you.

Good advice. There are a lot of people renting in The Villages, so lots of competition on the rentals. January - March is pretty much guaranteed to rent, but anything outside that time frame is a bonus. You can rent Nov-Jan, or April possibly May, but it helps to have a really nice place/location, and price it aggressively, and probably include a golf cart. The carrying costs on your home could easily run $1000/month, not including mortgage costs. If you're staying in the place a few months a year, you won't get the tax write-offs.

If you rent in the summer, rentals are very very cheap, and as l2ridehd says, it gives you a chance to try out the various style of homes and different locations. I think you'd come out ahead economically if you put off your purchase for a few years. If you weren't going to stay in the place, you could get substantial tax write-offs which might make it more economically attractive to buy now. YOu can write off all your utilites, amentity fees, etc., purchase of furniture, etc. If you do have nice place, you'll get return renters which makes it easier to rent out each year. Might be worth talking to an accountant depending on your economic situation.

[graciegirl]

Taj and 12ridehd gave you excellent advice. I don't think that you will have a problem finding a home here in six or seven years or ten years.

If you plan to keep the home you buy, than finding the right village and the right model is easier if you rent first. (It is hard to find a wrong village.)

Homes are sold here frequently because we are getting older among other reasons. I think that availability will not be an issue in ten or so years.

AND....Welcome to you. I hope you enjoy this forum and find your place in paradise!

[DrThunder]

All the replies posted have been excellent and are ideas I hadn't considered. That's a sign of a great community which is exactly what I'm looking for.

I've probably overly emphasized my thoughts about being a landlord. My underlying thinking was to treat the purchase of the home as part of my retirement planning and saving now. With interest rates at historic lows and prices soft, this feels like a good opportunity to buy something now and have it paid in full by the time I need it full time. Stashing money in a low or no yielding investment and hoping to have enough to purchase a home in 7 years seems less appealing.

For me, the idea of retiring and then moving somewhere I've never lived, leaving everything behind and hoping that the new location is perfect is not the wisest strategy. I need to cultivate the new location and make an emotional investment there. I prefer to think of retirement as new chapter that flows out of my current life, so spending the next few years establishing a second home both financially and socially was my real plan. I'm a single guy and just pulling up stakes and hoping to make new friends in a new city isn't as appealing as beginning to incorporate it into my current life now.

The rental issue just came up as the real estate agent suggested the reverse snowbird strategy to help pay for the home while I get to know the community and live there part time. I would never do it looking for tax strategies or as something necessary to make ends meet. That is a recipe for disaster. Being a landlord has never appealed to me in a normal situation, but it seemed like The Villages might be a completely different world where the tenants it attracted would be more likely be respectful and hopefully lower maintenance.

The house I'm considering is already furnished and I wouldn't need to ask a tremendous amount for rent, so if there is a market I would think it could work. I was just skeptical that there was a market at all, or at least to the extent that agent was claiming.

If there is solid demand for the January - April months, that would be fantastic. The income from that could pay for repairs and upgrades thru the years while I locked in the low mortgage rate, and have things in place when I'm ready to occupy it full time, or maybe graduate to a regular snowbird and keep my home up north if that makes sense when the time comes.

Any thoughts on my thinking are GREATLY appreciated. I'm eager to find flaws in my strategy before finding out the hard way!

[ducati1974]

I agree with 12ridehd- good reasoning