BEST RENTAL INCOME PRODUCED IN 2019!
Panama City Beach, Florida has experienced one of its best years, producing the highest rental income for all the ZIA investors and owners, who partner with us.
We are coming out of a record breaking year in the rental industry in Panama City Beach, FL. Due to Hurricane Michael last year, we saw dramatically increased numbers of occupancy and average daily rate immediately after the storm last year. Unfortunately the areas nearby Panama City and Mexico Beach suffered extreme losses. FEMA employees used Panama City Beach as a point of service to everyone who needed help and support in any and every way possible. The demand for rental properties from people who had their properties damaged, insurance agencies, government agencies and businesses providing services, connected with the recovery after the storm spiked tremendously.
Rental companies in the area had to quickly adjust to the new reality and act accordingly to protect the interests and the investments for their Owners. That meant quick change in the marketing efforts, upkeep procedures and pricing structure.
Below you can find some Gross Nightly Rental Income Produced for the 12 month period ending on October 15, 2019.
NOTE: The Gross Nightly Rental Income is the rental amount collected for the property and split with the Owner, it does not include any taxes, cleaning fees or other fees charged for the reservations.
Gross Nighty Rates
Total Days Rented
|Origin At Seahaven||No||Studio||$27,722.49|
|Origin At Seahaven||No||1BD/1BA||$36,874.11||327||0|
|Origin At Seahaven||No||3BD/3BA||$57,008.63||282||0|
|Origin At Seahaven||No||4Bd/4BA||$71,347.17||312||0|
**Please note: the numbers provided are actual numbers produced. The numbers will vary depending on numerous factors, including, but not limited to, unit upgrades, unit set up, location in complex, state of economy, Owner use, view, floor number, as well as weather and environmental and political factors and conditions. They should not be taken as guaranteed income and we do not warrant or guarantee these numbers for your unit. This is simply for you to compare to the performance of your property.
The rental market is going back to it’s normal state and it is unlikely we will see the same numbers produced any time soon. But you never know…
There are currently around 14,000 to 15,000 properties for rent as vacation rentals in PCB, which makes it a very competitive place, especially in the slower times of the year.
ACCORDING TO AIRBNB, THE AVERAGE OCCUPANCY RATES ARE:
January – 10%
February – 21%
March – 38%
April – 28%
May – 29%
June – 58%
July – 62%
August – 35%
September – 27%
October – 26%
November – 13%
December – 14%
The city continues to develop new projects and the area is doing well overall, but one of the main issues remains the infrastructure, which is struggling to accommodate all the visitors during the peak summer months. This is a common issue in resort areas during their peak seasons.
Most of the condos were built during the 2006-2008 construction boom, which makes for newer inventory, better floor plans and amenities, compared to the older buildings. That makes them more desirable for the gusts and the condos located in these buildings tend to see much higher occupancy rate as well as higher average daily rate.
The main attractions are located in and Around Pier Park – events, restaurants, shopping and activities. That area tends to be more desirable for guests. The second desirable area is around S Thomas Drive and Front Beach Road, where numerous complexes are located.
The geographical location of the Cit
y makes it preferred destination for travelers from Georgia, Alabama, Tennessee, Texas, Louisiana, Kentucky and Mississippi.
WHICH COMPLEX IS BEST TO INVEST IN?
It is difficult to single out one complex, as it will depend on what you are aiming for – strictly investment (ROI), personal use or combined.
Vast majority of home buyers are looking for the combined benefit, but it is t
he most difficult to achieve as what works for you and appeals to the Buyer, does not necessarily translate into highest ROI. It is best if there is a clearly defined purpose for the property.
Generally, the most desirable complexes are the ones that have the best location or best amenities, but it is also extremely important how the unit is updated and set up. It is highly likely that after purchasing a property you will have to remodel. Painting and new furniture are just cosmetic changes, it is best if bathrooms and kitchens are re-done, as they are likely over 10 years old by now. Imagine if you stay in a hotel room that everything is 10 years old – it is likely that hotel will not be one, you will be returning to and you will mention it in the reviews you will post online. Guests are also looking for an experience – not just a room to stay in, so try to incorporate it. That being said, the days when you would bring the old bed or couch from your home to your beach condo and rent it like that are long gone.
Average leases per year are about 50, so wear and tear are expected. When furnishing the unit, make sure that items purchased will minimize the maintenance. The great news is that there are so many options available out there that are beautiful and sturdy at the same time. Stay away from carpet, beds with box springs, coffee pots with glass pot, cheap paint, fancy stereo systems, stackable washer and dryer and heavy expensive bed covers. They will end up costing you quite a bit more on the long run.
It is not uncommon to have 2 units in the same complex with the same layout but set up and furnished quite different and one of them to
produce quite a bit higher income than the other one. In some cases, twice as much.
If you are interested in investing in Panama City Beach, please reach out to us and we will be happy to answer your questions and give you more information, in order to make your decision making process easier, maximizing your rental income or if you are new to the area and need guidance with the best approach that yields the best ROI!
ZIA Vacation Rentals
8730 Thomas Dr, Suite 1101
Panama City Beach, FL