How to Convert Your Vacation Rental in Key West into a Long Term Rental
By System Wednesday, June 18, 2014
Many investment property owners who rent their homes out as vacation properties are struggling with the pitfalls of collecting and submitting tax. The best way to avoid that tax is to convert your vacation rental into a long term rental. There are many benefits to this, and most property owners find it’s a better way to go for a number of reasons.
When you have a long term rental instead of a vacation rental, you’ll have guaranteed income for a much longer period. Vacation rentals can have their own benefits, but the market is pretty hit or miss here in Key West. You’ll probably be able to rent out your vacation property for an average of three months out of the year. The months that are most in demand for vacation rentals are January, February and March. So, with a vacation property, you’ll have reliable income for those months. The rest of the year can be challenging when you want to keep your property occupied.
With a long term rental, you’ll have that guaranteed income for at least six months of the year, probably all 12 months if you do a full year lease. It depends on which way you go. The law states that you must rent your property for over six months in order to avoid collecting and paying sales tax. That’s the magic number you need to reach when you’re converting your vacation rental to a long term rental.
As you switch into a long term rental opportunity, hire a professional property management company to help you navigate the changes. You have a couple of great options here in Key West. You can go with a small company that’s local and beginning to grow or you can choose a larger company that already has a brand name established in the area. It depends on what you’re comfortable with. If you’re comfortable and you have a good team of professionals helping you, it’s much easier to convert a vacation rental into a long term rental. You want to maximize your income potential and enjoy the benefits of renting out your home long term.
If you have any questions about the steps you need to talk, or you’d like to talk about how to manage the process, please contact us at Key West Residential Property Management, and we’d be happy to help.