We are constantly asked the question here in The Villages whether to rent a property long term or do short term vacation rentals. You buy a piece of prime real estate in The Villages and then want to rent it out, you put an ad in the local paper, field 200 phone calls from people who want it for 3 1/2 days from the most busy holiday afternoon until the following Sunday and will be leaving at 4am and want you to meet them to collect the keys.
Wait….. I thought this was supposed to be easy??
Whatever the home-style you have, it seems on the surface that renting your property short term will produce more money per month and therefore it is a better option. Nope.
Take a look at the expenses sheet below for a typical rental here in The Villages.
With an abundance of homes available to rent by the week and month and a HUGE home shortage for annual rentals, there seems to us to be a clear winner for peace of mind and expenses too.
|Short Term||Annual Rent|
|Monthly Rental Income||$3,400||Monthly Rental Income||$1,900|
|Landlord Costs||Landlord Costs|
|VCDD Amenity Fee||$145||VCDD Amenity Fee||$145|
|Cable TV||$35||Cable TV||$0|
|Local Landline Phone||$25||Local Landline Phone||$0|
|7% Sales Tax (Short Term Rent Only) – plus 2% short term leasing tax||$306||7% Sales Tax (Short Term Rent Only) – plus 2% short term leasing tax||$0|
|Lawn Care||$60||Lawn Care||$0|
|Pest Care||$20||Pest Care||$0|
|Landscaping Costs||$30||Landscaping Costs||$0|
|Additional Cleaning||$50||Additional Cleaning||$0|
|Golf Cart Insurance||$30||Golf Cart Insurance||$0|
|Total Landlord Expenses per month||$818||Total Landlord Expenses per month||$145|
|NET per month||$2,514||NET per month||$1,755|
|NET per year||$17,598||NET per year||$21,060|
|Assume short term lease for 7 months of the year. Realistically it’s 5 months but 7 months if you’re lucky||Assume rental is full year round on an annual rental. 12 months of the year|