Owners' Guide to Renting Basics in Naples Florida

Some buyers of residential property in the Naples Florida area either plan on renting their property as much as they can, or just for portions for the year, or just for the times when they are not using it. They find that the rental demand can vary by the properties location, its level of amenities, its overall value and and other factors. Virtually all residential properties are rentable for the right price, but an owner's rental success can range from zero months to 12 months a year. There is a large demand for rental units, but the supply is larger.

How to Manage and Rent Your Property in Naples

You can do it the easy way by hiring a rental agent with a real estate firm. Fees generally range between 15% to 20% of the rents collected. They find the renter, collect rents, prepare contracts, handle maintenance issues, and arrange cleaning between renters. The good news is that it's 99% hands off for the owner and it is professionally managed.

If you are an out of town owner, then it is usually a difficult process to find an annual renter with out having local assistance. To find an annual renter you would have to advertise locally, and have a means for the prospect to view the property.

If you want to rent seasonally then it is very possible to get it rented on your own. The alternative is for the owner to rent and/or manage it directly. Owners I've seen having a  successful rental history, are those that activity participate in promoting their unit by:

• Contacting friends and associates.

• Taking out ads in their local newspaper.

• Participate in online rent-by-owner websites such as www.vrbo.com or www.vacationrentals.com

These owners do the paper work and keys through the mail, or through other arrangements. Maintenance can be taken care of through phone calls, home warranty or service contracts.

If you decide to rent and manage the unit on your own, don't expect that you are saving the full 15% to 20% management fee. Renters might expect a discount off of normal rental rates when dealing direct with the owner, unless the supply of units is tight. Hiring a company or managing it yourself is a personal preference. It's very common for a seasonal renter that enjoyed the property and thought it was a good value, to reserve the same property for the following year.

Rent Duration

If you plan on buying a property to rent, and you want to rent seasonally, you better make sure the community allows rentals. Some communities do not allow owners to rent their property. Most commonly, rentals are limited to 3 or 4 different rentals per year, with a minimum rental period of 30 days being very common. Many beach condos restrict rentals to 90 day minimums. Which means you have just one chance at it - the season.

The more restrictive the rental frequency and rental durations in a community, the more likely owners in the community don't care for rental activity.

Rent Amounts

• Rental amounts are purely based on supply and demand, and rates vary significantly by season, community, location, amenities, views and many other factors.

• Peak rates occur January to April, with March having the highest demand.

• Generally 3 months rents in the season usually covers all your expenses such as condo fee, Hoa fees, property taxes, utilities, etc. (not mortgage payments). The nicer the property, the greater the amenities, the higher the fees, the higher the rent. The lesser the value, the lesser the amenities, the lower the fees, the lower the rent. Either way, 3 months rent, usually takes care of the out of pocket expense.

• Owners will try for a minimum commitment period of two or three months for the peak season, before accepting a one month rental during season.

• The total collected for a 12 month rental, might be only 20% to 30% more than the rents collected for just 3 months in season (January to April).

• Properties offered for 12 month rentals are usually unfurnished, but furnished units are also rented for 12 month periods.

Tax Implications

There are many important tax regulations and implications related to renting real property. Buyers looking to rent should consult their tax advisor.