Real Estate

Sharks & Nets – Vacation Home

When I was working at MegaCorp, we would do an exercise called “Sharks & Nets” to assess the risks of a big decision. “Sharks” were the big risks that could take the bite out of a big decision. “Nets” were the mitigation strategies that we would need to prepare ahead of time to stop each “Shark”.

With that in mind, I used an AI tool to list the “top complaints that people have with owning second homes”.

You can see each item listed below and what our thoughts are going into this decisions. Overall, we think we just have to live with the condo for a few years to see how owning a vacation place works for us. Yet, we’ll also take some steps to mitigate the big risks …

1. **Maintenance Challenges:** Owners often complain about the ongoing maintenance and upkeep of vacation homes, as it can be time-consuming and costly.

This challenge was front & center in choosing to purchase a condominium unit instead of a single-family home. We want to have a place that is as close to ‘lock & leave’ as possible. Hopefully we’ll just shut off the water, raise the thermostat and let it sit. We’ll keep wifi on and try to use some cameras / security to keep an eye on it.

2. **Financial Burden:** The expenses associated with owning a vacation home, including property taxes, insurance, and utilities, can become a financial burden for some individuals.

While our original early retirement budget didn’t have a second home in it, but I always figured we had a conservative enough plan that the $$$ would likely be there with decent investment returns. Our portfolio has done much better than expected in the last 8 years, so I think we’re pretty comfortable for the cost of a second place. We’ll keep an extra close eye on our portfolio over the next few years to see how we’re trending.

3. **Limited Utilization:** Some owners find that they don’t have as much time to use their vacation homes as they initially anticipated, leading to frustration and a sense of wasted investment.

This is the challenge that prevented us from buying earlier. We’ve been coming to Florida for just 2-3 months in the Winter. At this point, I’m really not sure how much time we will spend in Florida in a year. I’m hoping 3-4 months. Unless it is 6 months + 1 day to get the tax savings, I’m sure it won’t seem like enough, though. Eventually, we’ll probably make that move.

4. **Property Management Issues:** Dealing with property management, especially from a distance, can be a source of complaints. Issues may include finding reliable caretakers, handling rentals, or resolving maintenance problems remotely.

I’m quite concerned about having a long-distance relationship with our condo. We won’t be renting the place, so that will reduce a lot of the risk upfront. Still, one of our goals before we leave back for MN in the Spring will be to set up some arrangements with a caretaker or two to address any issues come up.

5. **Changing Preferences:** Over time, owners’ preferences and priorities may shift, making them less interested in visiting the vacation home or prompting them to explore other types of travel experiences.

Orlando is the third-most visited city in the United States, behind only NYC & Miami. It is a huge entertainment capital with more annual visitors than Las Vegas, Nashville, and New Orleans combined. Throw in nearby Tampa/St. Petersburg, and there is a plethora of things to do for all ages.

Any other challenges you think we should consider?

Image: (c) MrFireStation Photo modified in Fotor

10 thoughts on “Sharks & Nets – Vacation Home”

  1. You seem to have a very good list. Turning the water off before leaving can really save you from a potential disaster. One of my planned house upgrades is adding a whole house leak detector / automatic shut-off valve. This decision comes after having a refrigerator water dispenser come on overnight and waking up to real mess. Imagine the mess if I had been out of town.

    Cameras with cellphone notification with person detection turned on will be a good way to know if anyone comes into your condo, and have the ability to see and record them. The cameras will also bring peace whenever you have adverse weather, because it will allow you to check up on your property. Cameras solve crimes and being where they can be seen act as a deterrent.

    I also like Nest Smoke / CO Detectors that have a nice phone app that alerts me of any problems.

    Finally, I have a Ting power monitor that was provided by State Farm free of charge for the early detection and prevention of electrical fires. Costs only around $100.

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    1. Those are great suggestions! A few we already utilize on our MN place when we’re gone. My biggest worry is that we lose our WiFi connection – and all of these sensors and camera lenses go dark. . The Margaritaville cottage we are staying in now has lost its signal twice. That’s resulted in a need to have someone come inside and restart the router.

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      1. I am assuming that the internet modem is not hanging up and it is a WIFI router that is hanging. How are your WIFI routers working in MN? If they work well, then stick with the same brand. What are your Internet Service Provider options in Orlando?

        I use FIOS originally setup by Verizon, now owned by Frontier that brings a Fiber Optic Cable straight to my home, and provides 500 Mbps download and upload speed for $49.99 per month. Get fiber direct if it is available. Fast and reliable.

        If you are looking for good internet WIFI router, I recommend getting Ubiquity Access Points instead. The difference between routers and access points is that with multiple APs, the wireless connection will follow your device around the house and hand-off to the closest and fastest AP. My setup uses a Power over Ethernet Switch that handles the power and internet capability over a single CAT-6 cable. The equipment is medium price and offers options such as devices that look like smoke detectors and others that install in an Ethernet outlet box, like a hotel.

        You will probably want to run the same equipment in MN and FL to make it easier for your to manage.

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      2. Whoa. I have a lot to digest. At home, we use Comcast. It’s been OK. Went out once last Winter. I’m not sure that’s available here, but it might be. I know the town of Celebration is famous for having great tech. I think everything in town is fiber optic. I’ll talk to our Realtor. She seems to be Ms. Celebration and know who to reach first everything.

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    1. My son the software engineer has been in charge of our home WiFi, but he moved out quite a few years ago. I think this is what we have: Nest AC1200 router & 2 access points. I think it’s a ‘mesh’ technology, although it doesn’t always reach far. Both of the access points are in our garage in order to reach the outdoor WiFi camera I have pointed at our driveway. https://a.co/d/ab0CN5J

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      1. You should be able to add more devices to improve internet access in your weak areas internet coverage areas. Mesh devices act like WIFI repeaters. Place your additional units in the weak zones closest to other other another unit that is already in place.

        They probably also have some sort of web based management, which would make it easy for you son to help you with remote management. I am finding that I am adding more and more networked devices to my garage to manage and monitor different aspects of my house.

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      2. I think they link into the Google Home app, but I’ve never really used it for much. I’ll have to look when I get home.

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