Vacation and Rental Investment Properties—Which is Right for You?

Vacation and Rental Investment Properties—Which is Right for You?

Posted on: January 8, 2013

beachhouses1Canadian investors have long known that Florida real-estate represents a wise investment choice—but which type is right for you?  We are frequently asked to point out the differences between vacation (or short-term) investment properties and rental (long-term) investment properties.

To help you decide which product is best suited to your current investment strategy, here are three useful considerations:

(1) Rental Returns: Both short-term and long-term rental properties provide strong rental returns.  Vacation properties provide higher monthly yields because they target the tourist market.  Whereas long-term properties, while earning lower monthly rents, earn consistently throughout the year.

Some vacation properties have untenanted periods during the off-season which can result in lower rates of return than a continuously rented investment property.  Off-season vacancies, however, are off-set by the opportunity for personal use.

MSR Americas targets quality family communities for both vacation and long-term rental investment properties.  Good locations with high walk-scores ensure consistent rental returns.

(2) Property Maintenance: Maintaining an investment property—vacation or long-term—remotely can be challenging.  Both require provisions for maintenance.  Should an emergency situation arise, it’s good to know that a trusted local entity will assist.  Before deciding on either investment property, it is wise to consider who will maintain your property in your absence.

MSR Americas renovates our clients’ investment properties at the outset to increase capital value—and for peace of mind.  We also take care of all subsequent issues.  And we establish and manage all related accounts, from utilities to property taxes.

(3) Homeowner Associations: Some homeowner associations (HOAs) can impose restrictions about renting out a vacation investment property.  Others have steep mandatory fees and restrictive by-laws.  It is good to investigate an HOA before committing to either a vacation or long-term investment property.

MSR Americas has exhaustive professional experience with investment properties of both types.  We pinpoint communities with reasonable HOA fees, by-laws, and that offer the flexibility our clients need, whether vacation or long-term rental investment property.

MSR Americas provides a seamless end-to-end experience for our investors.  We take care of everything.

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