Returns on a property investment will usually cover costs, depending upon the type of property and location. A short term rental villa or condo/flat can return a profit if rented for roughly 32 - 40 weeks each year at average market rates. It is generally better to buy a property which commands market rates, rather than fill the villa every week at low rates, since this causes rapid wear and tear which may not ultimately be covered by the lower rates. Owners can use a short-term rental villa at any time, saving accommodation costs in the most popular tourist area in the world. If you don’t want to visit Florida on a regular basis, or have people staying in your property, perhaps a longer term tenancy agreement would suit. These are typically from six months to a year initially, with the option for a tenant to extend. Returns for this type of rental are not potentially as high as a vacation villa, but it is regular income which can still cover costs, with much less wear and tear and associated management costs. Only real estate brokers are allowed to write long term tenancy agreements. Apart from to objective of revenue covering cost, additionally, provided it is looked after a property will appreciate in value. Add to this the rather nice thought that Florida has no state income tax, and sales tax only 6% or 7%, not a whopping 17.5% VAT!
