Should 30-A rental rates increase?

[Smiling JOe]

Good analysis and conclusion, Shelly.

i agree.

 

[Babyblue]

This area is for the rich and famous. To many Bentleys driving down the road to reduce rental rates.

 

[swantree]

I think you also have to factor in the need of the owner tooooo rent! I have some owners who rent just to keep the money flowing but could take it off the market at any time! then I have others that Neeeeeed the cash and will rent for anything at times to just pay that bill. I see so many that just look at this house or that house as a business that is up or down based on what is going on down the block. look at seaside. old school but so many of the rentals are worn out and now people are looking to move to watercolor as renters go!

 

[seacrestkristi]

I increased my rates on gulf front by 10 percent this January and am booked over 30 weeks already in 2 properties out of the next 52 weeks. The property I have off the beach cannot be increased because it rents very poorly in comparison.

Interesting, and well put, Pirate. :roll: Our rental is across the street and I have not raised my rates for several years. Gosh, if I was a young family again, and had to watch every penny, I would love to rent my place. Right now, I'm offering $100 off for vacationers who book for summer now, or by April 15. www.a1vacations.com/217515.

 

[Pirate]

Would the 2001 & 2002 properties (with the 10% increases in rent) be the "two" that are booked for the 30 weeks out of 52?
.

The 2006 purchase is already booked 37 weeks out of the next 52. It will net approximately an 8 percent return on cash. It was bought at around 80 percent of asking which is approximately 50 percent of the highest comparable sale from the bubble era.

I am not saying all the properties there are great deals but this one makes sense as an investment. I have seen similar deals but they aren't the norm. With office in Atlanta selling at a 7 or 7.5 cap rate I have been looking elsewhere and this fit the bill.