loader gif

Please wait ...


Naples, FL Real Estate Agents


Real estate agents in Naples, Florida

Benefits of Purchasing Real Estate as a Rental Property in Naples, FL

Coastal Florida has lots of allure for short-stay and seasonal tourists as well as year-round residents. The city of Naples boasts some of the most elusive properties on and near its many beaches. A popular destination for golf, fishing, shopping, and relaxation, Naples draws thousands of tourists every year and is home to some of the highest-earning individuals in the country.

Owning a rental property in Naples is a lucrative opportunity to increase your monthly income. In this locale, both vacation and long-term rentals are in high demand. Vacationers come to stay for a week, a month, or a summer and are ecstatic to rent a beautiful property in a high-end Naples neighborhood close to beaches, golf courses, and other popular outdoor recreation venues. Professionals in a variety of industries want to spend time in the area without necessarily investing in real estate there. Renting your Naples home is an excellent option for many, making the market for landlords favorable as well.

Are you thinking of investing in real estate to rent in Naples, Florida? Here are some reasons why; Florida state tax laws work in the favor of rental owners. Naples, Florida real estate agents cite the following as primary financial incentives for purchasing a rental property here.

1. No state income tax.
Additional income is typically the main reason an individual would choose to purchase a property to rent to tenants or tourists. In Florida, you can maximize that income because Florida does not levy a state income tax. All the income from your rental property stays with you, the property owner. This does not, however, include other costs associated with property ownership, such as maintenance and upkeep, as well as property tax, which Florida does levy, and any federal taxes. Still, a substantial portion of your income remains intact when you choose to buy a rental property in a no income tax state like Florida. Depending on the state you live in, you may be subject to state income tax on out-of-state generated income. Consult with a tax professional to understand fully what the implications of state and federal income tax laws are for your situation.

2. No estate tax in Florida.
Owning a rental property is not just an investment for you; it can be a long-term asset that supports your loved ones for generations to come. The lack of estate tax in Florida maximize the benefit of that asset should you choose to leave the property to your beneficiaries. No matter where you or your loved one resides, the Florida-based housing asset will not be subject to state estate taxes, though federal estate taxes may apply.

Over and above the financial incentives associated with owning a Naples, Florida rental property, knowing you have your own little piece of paradise to escape to should you so choose is a knowledge you can rest easy in. To better understand the implications of these tax incentives, or to take the next step in identifying a rental property to purchase, contact a Naples, Florida real estate agent today.