My experience owning a waterfront vacation rental in Fort Lauderdale

I own a waterfront vacation home in Fort Lauderdale that I bought for $1.8 million. My goal was never to run a hotel. I wanted the house to earn enough from guests to cover the cost of owning it, contribute to the property taxes, and leave a little extra, while staying available for my own family's vacations.

The numbers

The house averages about 75% occupancy over the year, which comes to roughly 274 booked nights. At an average nightly rate of $500, that is about $137,000 in gross rental revenue a year. I am satisfied with that. It offsets most of what it costs to hold a property in South Florida and lets me keep the house as a long-term family investment rather than a monthly bill.

Why the house books well

Its biggest advantage is the water. The house sits on a canal with its own dock, and the beach is about a ten-minute drive. That combination draws guests who want to boat, go to the beach and live outdoors, which is what Fort Lauderdale is for. The dock and the pool matter most to families and to groups who want a private vacation rather than a hotel. Pool heating, how usable the dock is, the season and the distance to the beach all change how attractive the house is and the nightly rate it can ask.

What I spend

I keep management and operating costs in proportion to what the house brings in, and utilities and the regular monthly services are capped at around $1,000 a month. What is left after that depends on your own situation: property tax, insurance, a mortgage if you have one, and how much maintenance the house needs in a given year.

A house is a living organism and things break. When you buy, pay attention to the roof, the air conditioning, the plumbing and, if it is waterfront, the seawall. If those are in great shape it will save you a lot of money along the way.

What success looks like to me

My main objective is not to squeeze the most profit out of the house at any cost. I want paying guests to cover as much of the expenses as possible and help bring the mortgage down over time. Any extra cash flow is a bonus. What I value just as much is keeping the house for my family and enjoying the waterfront ourselves.

As for sharing the house with guests, we have been lucky and the experience has been nothing but smooth. Fort Lauderdale is a family destination, and most of the people who stay with us are respectful and responsible.

I see the property as a rental investment and a personal vacation home at the same time. Around 75% occupancy at $500 a night gives me a solid base of income, and keeping expenses under control makes ownership sustainable. For me, success means building equity over the years, lightening the financial load of the property, and keeping a home my family can enjoy for a long time.