If you plan on purchasing a vacation home in Florida it is important to understand all the costs associated with maintaining your property. Typical vacation home running costs will include but are not limited to the following:
Homeowners Association Dues (HOA)
HOA dues typically include all amenities located on the development in which your is located. Such as the guard gate, providing 24 hour security is one of the main reasons for a higher HOA. Also, does the development have a clubhouse with resort pools, spas, a lazy river or water slides? These amenities are added to attract vacation renters and increase demand for your property. Most new build resorts include each property’s landscaping maintenance and some include the replacement of the roof every so many years.
Maintenance & Utility Costs
Power, water, TV/Internet/Phone, pool service, pest control, etc. As an owner of a new build holiday home you can expect less maintenance in the first 5 years of ownership compared to a resale property and with new advancement in building materials and home appliances energy costs should be less as well.
To insure against storms, fire, theft, etc. you should carry (with a mortgage will be required to carry) property insurance covering your structure and contents. Liability insurance is also standard in many policies.
Property taxes are paid yearly and average around 1.75% of the property’s current assessed value, calculated by the county tax assessor for which your property is located.
Rental Taxes (Resort Tax)
If you intend to rent your property as a holiday home to others you will be subject to Resort taxes. This tax averages around 13% and are paid by the guests when they book a stay in your villa. Typically your management company will collect this tax and pay the county on your behalf.
Management fees for a new build holiday home are around $150 per month and management company commissions on bookings range from 5%-25% depending on how the booking was earned.