[CoachKandSportsguy]

Originally Posted by Ski Bum

I don't know why one would include depreciation in a financial ROI assessment.

Depreciation expense determines taxes paid, taxes paid is part of cash flow, and the ROI is an after tax calculation.

To determine the value of a rental property, you use the after tax discounted cash flow over the next 10-15 years, which is the proper way to determine valuation and ROI. . which comes down to a price per sq foot. . . . as the net present value of a commercial rental property

not all real estate investments have a higher disposal value / sale value . . . you may have, but that doesn't mean all. . . .

finance guy

[tennisaddict6]

Have you considered purchase of a stucco cement pored walls courtyard villa?

[Blueblaze]

Originally Posted by CoachKandSportsguy

This is why you don't take advice from random posters on TOTV. This statement is without context and therefore can be interpreted incorrectly.

Hotel tax is collected if you provide hotel services which is in and above just renting the property. It includes, food services and laundry services, as an example.

However, do your market research to figure out who will be your customers, and how do the financials look at 100% occupancy in Jan->Apr and then 50% in the remaining months.

From your original question, you aren't serious, as its very easy to search for rentals with google as if you were searching for a rental, to easily do a financial statement. All the competitive information is available on the internet, including bond costs, real estate taxes, insurance costs, location. etc. Rentals always come down to occupancy rates to figure out break even and return on investment.

We were not profitable in 2020 with 40% occupancy, and this year we are not profitable with 60-70% occupancy, without a mortgage, including depreciation, for ROI

finance guy

Good point. Never take the word of an online stranger when your money is on the line.

Here's what Florida says on the subject of transient rentals of less than 6 months:

Florida Dept. of Revenue -


Florida Sales and Use Tax

"Transient Rental Taxes

In addition to state sales and use tax and discretionary sales surtax, Florida law allows counties to impose local option transient rental taxes on rentals or leases of accommodations in hotels, motels, apartments, rooming houses, mobile home parks, RV parks, condominiums, or timeshare resorts for a term of six months or less. For a list of local option transient rental taxes, visit the Department's Local Option Taxes webpage.

In many counties, the local transient rental taxes are reported and remitted directly to the local government; however, sales tax and discretionary sales surtax on transient rentals are always reported and remitted to the Department. View a list of the Local Option Transient Rental Tax Rates (Tourist Development Tax Rates) "

[L&DZombro]

Rental prices through TV Hometown Properties are determined by type of home,
such a patio villa, courtyard or designer.

[thevillages2013]

Originally Posted by KRMACK55

Wrong on the hotel tax. Whoever told you that is wrong.

It’s a fact and just because you aren’t aware of the law doesn’t mean I am wrong

[DaleDivine]

Originally Posted by merrymini

This market seems to be hot and prices are probably elevated. I was a landlord for decades, albeit in a different environment. Do not believe the formulas people give you. Rentals are work and all kind of expenses. Ultimately, the biggest gain was appreciation of the property after owning it long term. Glad to be free of it all and would not do so again EVER.

Had a couple of friends here in TV that were happy when they finally got rid of their villas. They were losing money every year plus they did their own maintenance...

[Blueblaze]

Originally Posted by Girlcopper

What does it matter if the renter doesnt know theyre paying hotel tax? Rent is rent. Pay it or move on

It matters a couple of ways. First of all, burying the tax hides the true price, which makes it difficult to compare value.

But the part that would bother me as a renter is that I would wonder if I was renting from a tax cheat. If the guy cheats on his taxes, is he going to cheat me, too?

[charmed59]

We use Vacation Rental By Owner (.com) and they add in the taxes when displaying the price of the rental and pay the Florida taxes. A quick scan of what is left for this January shows the villas run about 5K a month including taxes. Owner’s take home on that is obviously much less.

We are lucky to have a great manager that is able to do shorter (3 day) rental periods in the summer allowing our homes to rent most of the off season as well as the winter. After paying him and taxes and taking off maintenance and supplies we pretty much break even. All profit is in the increase in real estate value.

[Barborv]

Besides it being what type of property it is, and if it is lake /golf course view, or close to town centers, it also has to do with the property being rented long term or not. Long term is much less than if you were renting for just the high season. If its long term, is it furnished or not. Does it come with a golf cart.

[vintageogauge]

Originally Posted by DaleDivine

Had a couple of friends here in TV that were happy when they finally got rid of their villas. They were losing money every year plus they did their own maintenance...

I don't know how they could lose money with a patio villa. Last year a unfurnished PV would have brought in about $17,000 rented for the year. The cost of taxes, bond, insurance, fees, water, and lawn maintenance is between $7,000 and $8,000 per year leaving about $10,000 profit if you don't have a mortgage. Two years ago Patio Villas were selling for under $200,000.00 if you would have a return of 3% on some type of investment you would have only made $6,000.00, at 5% you would break even but would not have had the huge appreciation over the last year or two.

[charlieo1126@gmail.com]

Originally Posted by KRMACK55

I rented a 2/2 villa in Fenny for 2 months in may 2019 and made the mistake of it being managed by the villages. It was may charged 1500- included everything. The plumbing burst 4 times because underground pipe exploded from tree roofs. They tried to keep my security but Visa voted in my favor. If you’re bored go for it

I may be wrong but you seemed to have had more problem or unhappiness In villages then I’ve had in 20 years on and off in 6 homes in fact I’ve never had a problem or been unhappy in all the time I’ve been here, I thought I saw that you moved , I hope your happier

[charlieo1126@gmail.com]

Originally Posted by KRMACK55

I rented a 2/2 villa in Fenny for 2 months in may 2019 and made the mistake of it being managed by the villages. It was may charged 1500- included everything. The plumbing burst 4 times because underground pipe exploded from tree roofs. They tried to keep my security but Visa voted in my favor. If you’re bored go for it

I may be wrong but you seemed to have had more problem or unhappiness In villages then I’ve had in 20 years on and off in 6 homes in fact I’ve never had a problem or been unhappy in all the time I’ve been here, I thought I saw that you moved , I hope your happier

[DAVES]

Originally Posted by Toymeister

Homes on vh4r are released for rent one year in advance except Jan -Mar. Those can't be posted until 1 Jan. So what happens is the swarms of new snowbirds scour all listings for the Best location at the best price. And if you look you will see clusters of price. Many owners leave the price that they rented for on their listing.

Don't be that guy. List after all homes are rented for prime season say, April, nine months in advance. You can easily command 10-15% more as you are the only option.

To list the price or not? Not in home rental but my business experience. In my industry we had MAP-minimum advertised price. People would regularly try to find a way around that as people shop on the internet by PRICE. Everyone is selling the same exact thing.
We discovered that people who say call for price many people refuse to call.

No I do not rent. I would expect with COVID evictions for not payment has become more difficult.

[kkingston57]

From April 2018 thru April 2020 we rented out a 3br bath home on golf course. Were told that market was not good. Rented home on yearly lease for $1500 a month. After paying fees and utiliites netted $850 a month(without a mortgage). Not much demand for yearly rental(too hot in the summer). Could have rented seasonal but was told that it would be difficult to get a long(4-6 month) lease and there was demand for 1-2 months lease. It is a crap shoot on making money and you need to look into long term appreciation.

Does have tax advantages. Realtors appear to have great lobbyists.

[TNLAKEPANDA]

I was think about doing the same thing…. However with the current price of the homes right now when you do the math and add up all your costs the return on investment is just too low for the amount of work you will be doing. If you can’t get a net of 8 to 10% you would be better off getting a good fixed investment paying 6 to 7%. There are lots of annuities that give good returns with no risk,