What Investors Look Into Before Buying Rental Property in Destin FL

Are you thinking about investing in rental homes in beautiful Destin, Florida? Properties in Destin can have excellent investment potential, but there is a lot to consider. This post will cover some points to consider before buying rental property in Destin, FL.

Emerald Coast Real Estate Watch

The average sale price of homes in Destin, FL, during June 2023 was $645,130. However, real estate trends are always changing. If you need help buying or selling a home on the Emerald Coast, click here to contact us.

What to Know Before Buying Rental Property in Destin FL

Rental Strategy

Investors need to decide on a rental strategy, like choosing between short and long-term rentals. Destin defines a short-term rental as any property the owner rents out for stays of less than six months. Both can be profitable, but short-term rentals have more upside since Destin is a popular vacation destination. However, short-term rentals tend to be more work, with more rules and restrictions.

Property Types

You also need to consider the different types of properties in Destin. Single-family homes and townhomes are popular in the area. You could also consider condos and multiplex properties. Look at your budget, see what you can afford, and weigh the pros and cons of each property type.

Location

Investors must consider the location carefully. Being closer to the beach and various amenities can raise the value of a rental property. However, the city also prohibits short-term rentals in many areas. If it is a neighborhood or condo building with an HOA, you may also need to consider their rules about rentals.

Local Laws

Local laws can also impact your investment strategy. Whether short or long-term rentals, you need to know the rules. You’ll have various obligations to tenants or guests as the property owner. Investors also need to learn about permits and taxes.

Age and Condition

Once you are looking at specific properties, you need to consider the age and condition. Older properties might cost less upfront, but there is a higher chance you’ll spend more on maintenance. Regardless of age, perform a thorough inspection before making an offer on a rental home.

Property Management

You’ll need to plan for managing the property. Routine maintenance is essential for all rental properties. If you operate a short-term rental, you’ll need to clean the house and get it ready between guests. You might be able to do some of this work if you live in or near Destin. However, you can also consider hiring a property management company.

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