Thinking about converting to LTR

[whosyodaddy]

As we wind down another year and I reflect back to the time (although not as much as in the past) I spent soliciting rentals and chasing deals, I am not sure if I want to go thru it again in 2008. I don't even think I spent over 5 nights in our home either.

So, I am testing the water to see if I should consider converting it to long term.

This board is full of wisdom and experience. Could you weigh in on the issue and also give me some kind of guage of what you think I fair rental fee would be for this furnished 3BR/3BA home with a nice yard located behind Cafe 30A.

Check it out at

Thanks.

Terry

 

[30A Skunkape]

A long term renter could rent a similar house for about $1500, give or take.

 

[Matt J]

You might want to try a rental company that will give you a discount on the commission for refferals.

 

[goin' coastal]

It is a very nice house. I can only share my experience. I have a similar house near ALYS Beach. It is a nice neighborhood with deeded beach access, has covered parking and storage. It has never been rented, fully furnished, hardwoods. I have been unable to rent it long term for $1200/month. There are so many rentals on 30a. Also I noticed a long term in magnolia cottages, lovely house at $1500/mo---Vacant!

The last folks who looked at my house said it was "too nice" afraid they would wreck it. Glad they told me! Who can make sense out of this market or what happened to 30a???? I would think unless you had excellent tenants the wear and tear would be worse long term. I see people looking for long term rentals at $600/mo. Where in this country can you rent for $600? I have not agressively advertised my house.

 

[Matt J]

One of the big issues in the rental market is of course location. The other issue is the inventory now available along 30A.

Most tourists are looking for Gulf Front and will only consider non-gulf front rentals if the price is right (see cheap). The same tourists have become very picky as to what they are renting. They regularly ask for King sized beds, internet access (wireless is preferred), amenities (beach chairs, bicycles, gulf cart, etc.).

The biggest problem seems to be the availability of rentals along 30A and the lack of tourists to fill them. PCB is also going thru the same thing and have cut their rents drastically just to raise occupancy. This helps the rental company with an income, but in the long run it severly hurts the owners with over use and no real money coming in.

The most common request I have heard from tourists calling regarding rentals is (this is not a joke):

"I want a 3 bed 3 bath gulf front home with a private pool in Grayton for around $1500 per week in peak summer"

 

[Pirate]

One of the big issues in the rental market is of course location. The other issue is the inventory now available along 30A.

Most tourists are looking for Gulf Front and will only consider non-gulf front rentals if the price is right (see cheap). The same tourists have become very picky as to what they are renting. They regularly ask for King sized beds, internet access (wireless is preferred), amenities (beach chairs, bicycles, gulf cart, etc.).

The biggest problem seems to be the availability of rentals along 30A and the lack of tourists to fill them. PCB is also going thru the same thing and have cut their rents drastically just to raise occupancy. This helps the rental company with an income, but in the long run it severly hurts the owners with over use and no real money coming in.

The most common request I have heard from tourists calling regarding rentals is (this is not a joke):

"I want a 3 bed 3 bath gulf front home with a private pool in Grayton for around $1500 per week in peak summer"

I have a gulf front 2br townhome that rented 47 weeks last year. I have however had a drop in off beach rentals. Are you saying gulf front rentals are down?

 

[barefootguy]

I guess it depends on what your mortgage is, but I'd say you're better off sticking with weekly renters. Long term renters can find pretty good deals these days, so it's hard to find someone willing to pay what you'd like to get. I just found a LT renter for my Crestview house that was willing to pay $1400 when most homes are going for $750-$1100. That doesn't cover my mortgage, but it's close.

My weekly rental brings in over $40,000 every year. It's a 4 bed/2 bath with private pool, 2 blocks from the beach. I don't use a management company, so all that goes towards mortgage and expenses. Again, doesn't cover everything, but it's close.

For some reason LT renters seem to cause more wear and tear on a home. Plus, LT renters always seem to have a pet. At least all the calls I get. Smoking is another issue. Weekly renters are fine smoking outside for a week (they want their damage deposit back), but try getting someone to smoke outside for a year.

It looks like your home is only listed with vrbo. If you stick with weekly rentals, I'd recommend listing with a few other sites. I think you'll book up faster. My weekly rental was booked for spring and summer by the end of February.

 

[Pirate]

I guess it depends on what your mortgage is, but I'd say you're better off sticking with weekly renters. Long term renters can find pretty good deals these days, so it's hard to find someone willing to pay what you'd like to get. I just found a LT renter for my Crestview house that was willing to pay $1400 when most homes are going for $750-$1100. That doesn't cover my mortgage, but it's close.

My weekly rental brings in over $40,000 every year. It's a 4 bed/2 bath with private pool, 2 blocks from the beach. I don't use a management company, so all that goes towards mortgage and expenses. Again, doesn't cover everything, but it's close.

For some reason LT renters seem to cause more wear and tear on a home. Plus, LT renters always seem to have a pet. At least all the calls I get. Smoking is another issue. Weekly renters are fine smoking outside for a week (they want their damage deposit back), but try getting someone to smoke outside for a year.

It looks like your home is only listed with vrbo. If you stick with weekly rentals, I'd recommend listing with a few other sites. I think you'll book up faster. My weekly rental was booked for spring and summer by the end of February.

Where else do you list your rentals and what have you found most successful? VRBO seems to work pretty good but the more exposure the better. Thanks.

 

[barefootguy]

VRBO has never done well for us, although it has for friends of ours. They have multiple properties and we have one -- maybe that effects it some.

Our best results for last year came from:
Homeaway Network (was 4 sites, but has since grown to include more)
Vacationrentals.com (now looks to be part of Homeaway)
Weneedavacation.com
Vacationhomerentals.com
Vacationhomes.com
Hotstays.com
Findvacationrentals.com

This last year we were listed on over 30 sites. We keep track of inquiries and bookings and then renew with the sites that work best. Just beware that it's always changing. Some sites occasionally stop marketing themselves until folks complain about the lack of inquiries. They're like us, why spend money you don't have to.
Always request a free trial before paying money for a listing to see what kind of results you get. If you get a booking then pay for a year listing.

 

[Cleaninglady]

It is a very nice house. I can only share my experience. I have a similar house near ALYS Beach. It is a nice neighborhood with deeded beach access, has covered parking and storage. It has never been rented, fully furnished, hardwoods. I have been unable to rent it long term for $1200/month. There are so many rentals on 30a. Also I noticed a long term in magnolia cottages, lovely house at $1500/mo---Vacant!

The last folks who looked at my house said it was "too nice" afraid they would wreck it. Glad they told me! Who can make sense out of this market or what happened to 30a???? I would think unless you had excellent tenants the wear and tear would be worse long term. I see people looking for long term rentals at $600/mo. Where in this country can you rent for $600? I have not aggressively advertised my house.

Hey I would be interested in a 3 to 4 bdrm house and I want nothing but nice. I am from Ohio and if you could find a rental house 3 bdrm for 600.00 a month it would be a complete mold and rat invested home.
So if you or anyone has a nice home for rent long term please let me know. I want to be on 30A close to Rosemary Beach, Seaside, ALYS beach and so forth.

I have lived here in Panama City Beach for almost a year now. I have stayed on the beach at Wyndham Beach Resort, Calipso, Aqua and now Tidewater.

We have stayed two to four months in each and I can tell you that most of the people vacationing in these units do not care at all. I think that a long term renter would be far better than a week by week renter who could careless what your home or unit looks like two weeks from now.

If you are not making money and I mean a lot of money, its better to PRESERVE the property (meaning long term rental) until the market turns around and it will turn around. We are about a year to a year and half we hope.

I have remodeled kitchens, baths and floors most of my life and what I have seen these vacationers do to these units is unbelievable. I would not be interested in renting anything that has been on the short term rental program. If a home owner told me I could gut it I might be interested (Not).


Also what happen to 30A? Panama City Beach and new condo units on the beach starting at 119 to 199 a night. But don't worry it will all work its way out. Just hold onto anyone with in reason that will rent long term. It took me a year to decide if I was going to stay and now that I am I would love a beautiful home close or on the beach near 30A. Email me if your place is still available debratrick@floridapcb.com