Steps in Making a "Vacation Rental" Property Investment
1. Speak to a local zoning lawyer (real estate lawyer familiar with zoning laws) to identify the potential location for your property. You'll need an area where "transient" use will be allowed. State, county, and local laws may all be involved. "Transient" use means "vacation" use.
2. Once you have identified a potential property location, determine the kind of property you want to own: Condo apartment or house, number of bedrooms and bathrooms, amenities. Note that condominiums and HOAs may not allow short term rentals, at all.
3. Find a property that suits your goals based on income potential (and appreciation). Decide whether you want to have weekly renters, monthly renters, or both.
4. Close on the property.
5. Put the property into an LLC to protect yourself from liability from guest injuries (or at least have good insurance). Speak to your attorney about your options. Consider that your mortgage lender will want to know how you intend to use the property. Ensure that your insurance provider protects against harm during commercial use (i.e. use as a vacation rental, rather than as a residence).
6. Contact Nightlight Vacations, LLC to work with your attorney to prepare all license applications (State, county, city) to get "transient" use approved. Your attorney will advise if Florida law requires you to have licenses, at all (it depends on how many rentals per year, length of rentals, how the property is marketed, and how many units are involved.
7. Get a sales tax number and have your accountant advise on the proper procedure for collecting and remitting Florida State sales tax from guest.
8. If your licenses are granted, Nightlight Vacations can help set up your vacation property for vacation use. The property has to offer certain comforts for guests, including furniture, heat, a/c, water, phones, emergency numbers, and the law requires certain safety measures and cleanliness levels.
9. Retain Nightlight Vacations to market the property, take reservations, setup the property for guests, answer questions, provide property access instructions, ensure smooth operations, keep the property maintained, handle guest departures, prepare the property for the next guest.
Contact us today to discuss your vacation home licensing, operation setup, and hospitality management needs!