Who would not want a Luxury Waterfront Vacation home in beautiful SW Florida? Who doesn’t have friends or family that wants the same? Even better, a Luxury Waterfront home that is a cash flow property? There are several considerations in this process.
A current listing of mine (5807 Staysail Court, Cape Coral, FL) is a perfect example of this scenario using tenant in common ownership. This type of ownership allows 2 or more owners to have undivided interest in property ownership with equal rights of use. This is not a partnership since each owns a percentage of the property based on their financial contribution. The individually owned percentage can be mortgaged, separately sold or willed to another.
The “Season” in SW Florida usually lasts from Thanksgiving week through Easter week, about 20 weeks. According to several Seasonal rental specialists, the average rental of this property would be approximately $2500 per week. Off season rentals could average $1000 per week. The house could easily be rented when not in use by the owners. Higher rents could be achieved by including a car, a boat or even jet skis.
Seasonal rentals need to have a total cleaning between renters. House cleaned, dishes through the dishwasher and linens and towels washed. The lawn, pool and hot tub need to be cleaned and maintained. Vehicle gas tanks filled and even keeping the refrigerator well stocked is a necessity in a luxury seasonal rental. The solution – allow a retiree or a college student to live in the one bedroom apartment above the garage to act as a caretaker. This person can do all of the above tasks to keep the house perfect for seasonal renters. An extra bonus would be for this person to cook, clean, grocery shop and do laundry for the vacationers at an extra charge of course. This “live in” employee gets free rent and tips for keeping the home move in ready.
Sharing paradise allows the tenant in common owners enjoy ownership of a luxury home, seasonal rental income and a free caretaker. Perfect way to “share a bit of Florida Paradise”!
By the way, here is a great look at the property (click on picture) –
Broker/Owner, Investment Property Consultant
Real Estate Services of SWFL, LLC