Investing in Sanibel and Captiva Islands

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A Guide to Property on Sanibel and Captiva

Home or Condo?-Click here to see which is best for your needs

Investment Opportunities -Click here to see how it's done!

Home or Condo ?

The amount of time you’re going to spend on the islands and whether you want to rent out your property are the two major factors most people use to determine whether they want to buy a house or a condo.

Year round residents often prefer a house because the average condo apartment can be small to live in year round. A two-bedroom condo on the beach is usually between 900 and 1,400 square feet. Cozy, if you live simply. Cramped if you don’t. A winter only resident with few possessions may be able to live happily in 1,000 square feet.

What is constricting year round can be comfortable for three months.

The amount of time you want to spend caring for your home, may also influence your decision. Many islanders are down here to enjoy the sun and the surf, not to mow lawns and fix screens. Winter only residents, in particular may prefer a condo. Snow birds migrating north in the summer may feel more comfortable knowing there’s the condo maintenance crew watching out for problems and caring for the pool.

The cost for this care comes in the form of a maintenance fee which may be as low as $250 a month or as much as $1,000. The amount of the fee depends on the size of the complex, the age of the structure and whether owners want to build up capital reserves to pay for items, like a new roof or rebuilding porches.

Condominium fees almost always include insurance of the building, maintenance of all the common areas such as landscaping and the pool, management, legal fees, electricity for lighting common areas and water and frequently cable television.

Investment Opportunities on Sanibel & Captiva Islands

Income and Appreciation Most people buying island property are primarily interested in personal enjoyment. But if you want to offset some of the costs of your island property, you can rent it. The type of property and the minimum rental period affect rental income. Vacation type properties on, or very close to, the beach usually bring in higher rents, and are rented more often. Properties that you can rent by the day bring the highest income.

Types of rentals Rentals can be year round or seasonal. Vacation type properties on or near the beach can be rented seasonally, and this will bring a greater return than an annual rental. The winter season, from November to April, is the busiest time with the number of visitors reaching peaks between Christmas and New Year, and mid-February and April and this is when rents are highest. Occupancy rates are rising year round as more European visitors come to the islands.

Where People Rent Most people renting short-term want to be on the beach, so beach front properties rent best. A second choice might be either on the bay, near the beach or on a canal.

Minimum Rentals Resorts that rent daily are the best bet, but condominiums with weekly rentals also do well. Owners of these condos often cover all the expenses of owning the condominium and pay some of the mortgage.

Guaranteed Rental Programs Some resort-type developments guarantee owners a certain amount in rental income. Owners of apartments in these programs are limited as to when they may use the apartment themselves and are expected to bring the units up to a specific standard.

Rental Expenses Some rental expenses include rental commissions, cleaning and utilities. Rental agents usually take 20% of the gross rental amount, but some on-site rental agencies have different arrangements.

The Bottom Line If you rent your property during season you can usually cover the costs of ownership, i.e. maintenance, property taxes and general upkeep and some or all of the mortgage payments, depending on how much you have financed. Most savvy southwest Florida investors have made money through a combination of rental income and capital appreciation.

Pages updated 12/4/2008