When we get round to selling this house on the Cape and moving to Orlando full time ...we're thinking of putting our money into more houses....this time to rent out.....what would be best....one large house....or two smaller ones......I think there's pros and cons to both....I'll be there to take care of it...or them....I used to help run a cleaning company....(houses and offices)....but hubby thinks two houses....I think one.....and I don't know who's right....
As you say, pros and cons for both...
One large home =
One set of utility bills
One set of lawncare, pool care, pest control, termite insurance, etc
One home insurance
One sales & tourist tax
One property tax
One check-in and out only possible per day = one clean at a time
Can rent to smaller groups
Only one booking can be taken at a time
Rental income lower in comparison to two smaller booked homes
Two smaller homes =
Two sets of utility bills
Two sets of lawncare, pool care, pest control, termite insurance, etc
Two home insurances
Two sales & tourist taxes
Two property taxes
Two check-ins and outs possible per day = double clean to be done in time?
Can rent to larger groups using both homes
If one home is full, you can still take a booking in the other home
Rental income higher if both homes are booked but lower if one is empty
You can probably think of some more in the same vein and you need to use figures to go with the list...
blott
Personally I'd go for 2. The "problem" with most of the owners here is that they are renting out "their home" which is why they will never get rich at it! [:I] Free Playstations and Internet access etc is what you would offer a "guest" in your home, not a punter you are servicing as a customer. I'm not knocking this approach, and from the customers point of view it is excelent service, but a money making business it aint!
I'd buy 2 properties. A quality 4 bed with 2 master quites which is ideal for up to 10 people (2 families), and I'd target that at the American market who expect quality but are prepared to pay for it.
The second property would be a cheaper 3 bed in an older area (whispering oaks comes to mind because we stayed there but I'm sure there are others) and target that at brits who have only been on package tours before.
I'd expect you to be able to offer a lower standard home (and therefore at a cheaper price) and still exceed the expectations of people who have only been with the tour operators in the past. This also gives you extra flexibility for occupancy and hopefully a more reliable income stream.
That's my view as a Marketeer and UK landlord, but I don't have a Florida property so what do I know?
My first idea was 2 small villa's....one because I can fill them with some of the older folk where I live....for the winter months....sept-april.....we have a lot of snow birds here.......most are interested....in fact the villa we have now I could fill next year even without a pool....but I want that to be our home apart from close friends and family......
Most of the points blott made jumped into my head about the cost of two places....and I thought large house....one because a lot of the snow birds are friends with each other....and they go away together.....I've only look at the America market so far.......word of mouth.....I'm going to be on the spot to pick up bargins....resales....etc....its a lot to think about....I don't know how you all do it living so far away.......
After a weekend of BBQ's...I wish I were renting out the villa...I'd have it fully booked.....I asked for lots of ideas from everyone and came up with this.....one 3 bedroom villa....no pool....but one on site........not one of the 80 or so American couples and families wanted a pool..if the cost of the villa would be lower.....a lot of them already have a pool for starters...and the snow birds....had no interest because they all meet up with friends at a club in Orlando which has a pool....none of them have ever looked into renting a villa....most stay in hotels...all go to the Orlando area about once a year most at different time..older people in winter younger in summer....staying for a month or so..all of them loved the idea of villas.......
The second....still 3 bedroom.......but with a pool ...but geared up for one family.....most of my English and American friends or just strangers I asked at the parties would want a smaller place to go away on their own....their newly married with a young child.....or older with no kids....or like us had a bad time sharing a holiday place.....I'm hoping to find this as a resale....my friends a builder in Orlando and refits homes.....he says he can make it like new in no time.....and also fit a pool in the other house if I get an end plot and if we find we will need it....
Now all I need is the money...LOL...
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