Isn't it great that our little corner of the world is so popular that millions of people want to come here from all over the country every year? Well, they have to stay somewhere!
Gulf Shores and Orange Beach Condo Rental Income
Because of the incredible demand that our beaches draw, thousands of people have figured out a way to capitalize on it. They buy condos for investment purposes. The real estate market in Gulf Shores and Orange Beach continues to grow annually in both tourism and condo purchases. And, the good news is ,for the folks who want to buy a condo here for an investment, we have rental history to show for virtually every property here at the beach.
We have a number of property management companies here in Gulf Shores and Orange Beach, from large corporations to small mom-and-pop operations. The figures below are brought to you by one of the large property management companies here - Meyer Property Management.
To be clear, I am in real estate sales and I have nothing to do with property management other than recommending certain companies to my clients based on my experience. My job in selling condos is to provide my clients with everything they will need, which includes finding them a great property management company to work with based on their needs.
Important Factors to Consider
While Meyer provides this great list for us to use, these numbers are based on clients who they have in these buildings.
The hundreds of condo complexes that are represented here in Gulf Shores and Orange Beach are also served by a couple of dozen other management companies as well.
There are also a number of condos that are self-managed (saving the owner from paying management fees).
With that being said, the list below from Meyer is a fantastic gauge to go by when considering a condo purchase at the beach for investment.
Many condo owners can attract more renters, yielding them more income than you see below.
Below this list, you will find ways to optimize your yearly rental income.
Any of the links below will take you to the real estate page for that complex that will show you exactly what is for sale in that community.
FYI - the main reason for the difference between the "High" and "Average" figures below has to do with the owners using their condo for themselves.
Annual Rental Income for Gulf Shores and Orange Beach - 2018
As you can see, there are plenty of opportunities to own investment property in Gulf Shores and Orange Beach. You can build your real estate portfolio, possibly have your condo pay for itself, and build equity for the future.
How to Optimize Your Rental Income
Have you ever wondered why some condos seem to bring in more rental income than others? You could have 2 units next to each other, with one bringing in $10,000 more a year in income.
The condos that get the most rental income have the best views, they sleep the most people, and they have the best decor.
While there are some things that you can't control (like where the condo is located), there are options that you can take action on that will bring you more revenue.
Renters know that they're going to spend a pretty penny coming to the beach so most will want to comfortably be able to sleep the most people to cut down on their own costs. Make sure that you're unit has a sleeper sofa. Most will have one here but make sure that it's in good shape. If you have a 2 bedroom unit plus a sleeper sofa, renters know that they can comfortably sleep 6. You may even consider putting 2 sets of bunk beds in one of the bedrooms, so you can sleep 8. Being able to advertise this will draw in more renters throughout the year.
Limit Your Own Use
Yes, of course you will want to use your own property. Besides, that's one of the perks of owning a beach condo. However, if you want to maximize your rental income, take notice of the times of the year that are the least busy to come to the beach. This is obviously during the cooler months.
We often see units that don't seem to generate a lot of rental income because the owners have used the condo themselves for 2 or 3 months during the year. More availability means more income.
Update Your Condo
When renters are dropping thousands of dollars to come to the beach, they definitely would prefer to stay in a condo that looks fantastic. Anything that you can do to update the cabinets, flooring, furniture, paint colors, and counter tops will pay be dividends in the future.
I strongly believe that your investment will not be lost due to the fact that your property will attract more renters merely by how it looks.
Think about it. Nearly every one of the millions of renters that come to our beach will be making a judgement on where they're going to stay by what they see on the internet. The renter will go online, plug in their dates and how much they want to spend then analyze what's before them. The condos that are light, airy, and spacious will rent before the dark and dreary units do. The condos that have neutral color schemes will rent before the unit gross green walls. The condos with comfortable looking furniture will rent faster than the unit with the broken down looking wicker sofa. Get the point?
Stage Your Condo for Optimal Space
Renters will spend a great amount of time scouring the pictures of the condo where they're going to spend 7 days of their life. As the owner, you need to think like a renter. How is the flow of your condo? Can 2 families comfortably sit in the living room without feeling crowded? Would it be beneficial to re-arrange the furniture or even the TV to optimize the space? Is there too much furniture? Is there enough seating for people to be able to eat together? How are the sight lines to the balcony? Think like a renter.
Take Great Pictures
We've all seen the dark and grainy pictures that some condo owners use to "market" their property to renters. Stop it! Like I mentioned earlier, nearly everyone will find their vacation spot online and will make their decision based on the write up and the pictures. Make sure that you are letting the light in, clean the lens of your camera, and don't be shaky.
Whether you are using smart phone or Nikon, there are apps that you can use (some are free) to enhance the photos to make their quality 10x better. Do whatever you have to do to make your condo shine and think like a renter.
Are you wanting to buy a condo in Gulf Shores or Orange Beach for an investment? Contact me today for exact rental income and pricing strategies.
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