Luxury rentals are a thriving business, and there are many reasons why you should consider investing in a luxury rental property. In recent years, there has been a trend shifting towards a ‘sharing versus owning’ mentality. Renting has a new adventurous image; ownership is not as appealing as it once was, even for the very wealthy who would rather rent an island than own one.
In a recent article, The New York Times reported, “Many of the world’s better off choose to rent their vacation homes instead of buying for a range of reasons, including a desire to avoid burdens like maintenance and homeowner association, insurance, and fees.” The affluent enjoy flexibility without the commitment, and are now recognizing the benefits of renting.
According to a 2015 survey on sharing economy by PricewaterhouseCoopers, consumers want to travel more and find satisfaction through experience, rather than material possessions. Consumers are rethinking the value of ownership, realizing that renting makes life more convenient, is more fun, and is less expensive when compared to ownership. This also means investors in rental properties are finding the economic advantages with this trend, and the demand is only increasing.
Cape Coral luxury rentals are profitable. The wealthy are willing to pay a premium to rent places they want and enjoy the experience. Luxury home rentals generally start at $4,500 per month and rise to $20,000 per month. Luxury condo rentals start at $2,000 per month and rise to $6,000 per month. Renting during the months of October through April will see premium rate increases of 20%. Properties in the southern most areas of Cape Coral, with Gulf access, are the most coveted. Renters are typically families; they are often from the Midwest states or Europe, and are mostly made up by the baby boomer generation.
There is good reason people are renting in Cape Coral: to get away and leave the stress of everyday life behind. There are numerous recreational opportunities, such as boating, cycling, fishing, swimming, horseback riding, sailing, surfing, diving, tennis, water skiing, etc., and several 18 hole golf courses are nearby and make for an enjoyable vacation experience. Numerous parks and lakes in the area invite residents and visitors alike to relax. The area’s upscale restaurants are an excellent place to escape, dine and unwind. Of course, there are also plenty of shopping opportunities as well.
For property investors, the rental market is a lucrative industry. Both rental rates and home prices are increasing. From 2014 to 2015, rental rates increased in the Cape Coral area by 25.4% and home prices increased 14.3%. Investors can also benefit from both worlds, by enjoying their vacation home and renting at times when it is unoccupied. Luxury rental property inventory is often nonexistent during season, and if you are considering renting for next season you may be too late. Finding an excellent property management company can help with everything from screening tenants and collecting rent to coordinating vendors, maintenance and repairs. The bottom line is they work in your best interest, while taking care of your tenant.
At Miloff Aubuchon, we are a one stop shop, and I can assist you with any of your real estate needs, from building your dream home, buying and selling real estate, interior design, to property management. I value assisting my fellow neighbors and I would love the opportunity to help you find your piece of paradise.
Submitted by Cape Coral resident and Realtor Christine Antonides
Follow Christine at www.TheGulfCoast.life