Considering a Vacation Rental Purchase?

Owning a vacation property is a fantastic investment but is also a place that you can create memories that will last a lifetime with your family and friends. It is a lifelong dream for many to have their own piece of paradise. The Emerald Coast offers a variety of homes, townhomes and condos along the white sand beaches.

There are several factors to consider when making a vacation rental purchase:

1. What are your goals for the property?

Is this property being purchased for family use or will it primarily be rented throughout the year. Both are valid purchases, but it’s beneficial to consider these goals prior to making a decision and to communicate with your realtor and property manager.


2. Are you financing your property?

If you are financing a vacation rental purchase, we strongly encourage you to connect with a lender before you begin shopping for a property. Second home and investment financing can be more complex than a regular home mortgage. We can help connect you with mortgage representatives that will help you make the right decision from the beginning.


3. What type of property are you considering?

There are several different types of properties that offer great vacation rental options. There are single family homes, townhomes and condos. Beach front and walking distance to the beach options can be valid purchases. It’s important to consider the pros and cons of each before you make a purchase. Our experience in vacation rental management can help you determine what will be right for your family.

4. Long Term Appreciation and Yearly Revenue

When purchasing an investment property, it’s crucial that you factor both the long-term return and yearly revenue you will earn when making a purchase. This is something we discuss with all of our clients. As realtors who also work in the vacation rental business, we have hands on experience with both sides of the industry. In general, long-term appreciation aka equity is a fantastic return on your investment. While recent years have allowed owners to gain a large amount of equity in a short period of time, generally it takes several years to earn a nice return on a property.

Yearly revenue through vacation rentals allows a steady stream of income to the property that can offset your cost of owning. In Panama City Beach, we are proud to be considered a “year round destination” at this point in time. Gone are the days of seasonal closures for most businesses and we are thankful for that. However, Panama City Beach is still incredibly seasonal in both occupancy and rates. We can help you with realistic projections for what a property can produce based on your goals. Knowing that many outside factors will affect numbers. If we have learned anything over the last several years, it’s that we can’t predict the future. Ultimately, we want to help you make an informed decision with transparency and data.

5. Wear and Tear

Owning a vacation rental is a fantastic investment that many are incredibly proud to have in their portfolio. Most often, these properties are located away from the owner’s hometown and require a management company to oversee the home.

We do recommend considering the wear and tear of your home and not just the yearly revenue. When a home is taken care of, there is less yearly expense due to maintenance upkeep. This is why choosing a management company that aligns with your goals is so important.

While we pride ourselves in being a wonderful vacation rental company, we are certainly not right for every customer and their goals. Regardless of whether our program fits with your needs, we help you to determine what matters the most to you with your purchase.


These factors are important to consider, and we believe that our knowledge and experience in both sides of the business allows us to help you when making such an important decision in your life.


If you would like to consider Sunspot Realty for your real estate needs please give us a call today 850-234-7151.