So you want to purchase a holiday villa here in the states and your plan is to buy it and rent it out to short term renters while your not using it. You have it all figured out, your estate agent has got you all excited about how you’re going to receive a cash flow on the property and it will pay for itself
I hate to be the one to tell you this but they lied to you. It’s one of the biggest myths you are going to hear when you come to Florida to buy a vacation home. Realtors and management companies often tell you this because they want to make the sale and they think it’s what you want to hear. It may be what you want to hear but it’s simply not usually true.
When you turn your property over to a management company to be rented out you can expect that rental income to only offset your expenses and reduce your payment but certainly not bring you in an income. With all the related expenses to management and owning a home it’s just simply not possible unless you pay all cash for the property and do not hold a mortgage. The reason being is that the average booking on a villa is about 20 weeks per year. After you pay out taxes, management fees and cleaning fees there just simply isn’t much money left. With bookings being down due to the economy it’s just not enough cash to cover all the expenses.
You should strongly consider your financial situation before you buy based on the full load of home expenses just in case. Beware of any agents or management companies that tell you any different, they are just trying to get you to buy.