Some points to consider about renting properties on Sanibel or the Fort Myers area:
- Some communities (including Sanibel Island) allow weekly rentals of condos, but many associations limit rentals to monthly or restrict the number of times per year an owner can rent.
- Many single family homes are restricted to monthly rentals.
- Captiva Island does not have these rental restrictions.
As a general rule, the shorter the minimum rental period, the easier it will be to rent the property. Therefore, condo complexes that allow weekly or shorter rentals can provide the best potential income.
Also, direct beach front condo units tend to rent more frequently and at a higher rate than units with limited Gulf views (of course they sell for more too). Some owners of near beach units are able to generate good rental income as these units are less expensive to buy and provide vacationers a lower priced option.
During peak season (Jan, Feb, and March) most units in the area are easily rented. Off-season is more difficult to rent although the Fort Myers/Sanibel area welcomes many guests from Europe and other parts of Florida during the summer months.
The following information sheds some light by providing a survey of Sanibel Island condos sold from 1/1/2011 through 9/15/2011 with the reported rental history.
The numbers below are based on “reported” income and many had significant owner use of the unit. Most are not actively marketed by their owners, but instead rely solely on their property management company for bookings.
|Sold Price Range||Typical Rental Income|
|$200,000 – $400,000||$12,000 – $33,000|
|$400,001- $600,000||$25,000 –$60,000|
|$600,001 – $800,000||$35,000 –$80,000|
At the Sanibel Harbour Resort & Spa, we manage a number of units that produce gross rental income of $30,000 – $60,000 per year. The owners typically “net” about 75% of this amount which can be used to cover other ownership expenses such as condo dues, utility costs, real estate taxes and mortgage payments.