John Stuart Mill famously said, “landlords grow rich in their sleep.” As a property management company, we don’t necessarily agree with this sentiment. A lot of work goes into managing a residential or short-term rental property that would be difficult to do while sleeping! But, with the right partner, it can be an innovative and unique way to save money, build a small business or fund your retirement.
Here in Sarasota, Florida, there are many vacation rental homes. The market is booming and with good reason! The tourism industry here in Florida is expanding, and Sarasota is a hot ticket for many travelers. According to the state’s tourism bureau, Florida welcomed 68.9 million travelers from January to June 2019, the highest number of visitors during any six months in the state’s history.
But what about now? After the past two years of living with COVID-19, have tourism numbers tanked? No! In fact, during the summer of 2021, when COVID-19 was at its height, Sarasota County June visitation was up 34%. Virginia Haley, president of Visit Sarasota County, said, “We broke all the records. Especially in July and August. Despite the red tide, we have the best August ever compared to any other August in terms of leisure travel.” So what do these numbers mean to you if you’re considering buying an investment property here in Sarasota? Let us explain!
Tourism is a Huge Industry in Sarasota
The tourism industry is one of the biggest economic drivers here in Sarasota, and that’s no surprise. With our beautiful beaches, warm temperatures, unique attractions, museums, and world-class restaurants, there’s plenty for tourists to do when they visit. And when they arrive, they are spending money in the local community. Here is some of the data on the economic impact of tourism in Sarasota county from 2021:
- The total economic impact of tourism in Sarasota County was valued at $3.6 billion in 2021.
- Over three million visitors came to Sarasota county in 2021, an increase of 51.4% from the previous year.
- Of the 2021 visitors, one in five were first-time visitors, while two in five visitors were repeat visitors who have previously visited ten or more times.
Sarasota County Has Unique Vacation Rental Advantages
The tourism numbers show that the industry is growing fast here in Sarasota county, making it a great time to jump in. But there are more advantages to buying an investment property here in Sarasota county than a booming market. The county has a unique tax advantage that helps to keep the county competitive in the tourism industry and keep local attractions well maintained.
The Sarasota County Tourist Development Tax (TDT) is a 5% tax paid by visitors staying in short-term rentals for six months or less. So if you set your property up as a short-term rental, your guests will pay this tax as part of their rental fees. This tax is only collected by visiting tourists, and it’s used to help support the industry here in Sarasota. For example, 75-80% of the tax goes towards beach maintenance, beach renourishment, the aquatic nature center, sports stadiums, and art and sports tourism. The remaining 20-25% goes towards tourism promotion, which exclusively markets Sarasota County as a top-notch vacation destination. This tax is a considerable benefit to vacation rental owners because it offers them the free promotion of the area and keeps the county in tip-top shape as a tourist destination.
Ready to Become a Vacation Rental Owner? We Can Help!
These are just a few of the advantages that come with owning a vacation rental in Sarasota County. There are so many more, and it’s why it’s such a great place to buy an investment property to turn into a residential or short-term rental property. But if you’re genuinely looking for a way to make your investment property business take off, let us help. We offer premier property management services for residential and short-term rentals in Sarasota. Our team has extensive experience with the local market to help find your tenants or to keep your property fully booked. We offer complete services, including housekeeping, accounting, technology support, marketing, and more. Owning an investment property and turning it into a successful business will be easier than ever with our team at your side. So call us today at (941) 237- 0011, and let’s talk about your plans to invest in Sarasota county!
