AL Gulf Coast Over the Past Decade
The AL Gulf Coast's stretch of white-sandy beaches is changing right in front of us. Gulf Shores and Orange Beach has grown at record pace in the past decade. In 2006, we published an article that discussed the amazing growth of the Alabama beaches when compared to other coastal areas. (See image left from article) This may be partially due to the low taxes, more available land, population density, etc.., but Orange Beach and Gulf Shores are different places today. The Alabama Gulf Coast accomplished this by simply taking care of its resources and making tough decisions that weren't always based on popularity. A prime example happened earlier this year. In the Spring of 2016, there was a huge jump in alcohol-related accidents during the Spring Break season. Gulf Shores and Orange Beach acted swiftly banning alcohol on the beaches throughout the remainder of Spring Break. This did not go over well with everyone, especially around the time of the announcement, but it seemed to work as there were no additional accidents of this nature.
The growth of the AL Gulf Coast is providing vital revenue for all types of businesses along the gulf coast, perhaps none more noticeable and easily monitored than lodging. The Alabama Tourism board publishes annual numbers associated with lodging along the gulf coast. In each of the past three years, the taxable revenue from lodging has increased. Many of the condos in Gulf Shores and Orange Beach carry occupancy rates approaching 90%. This number is an average and with any average, there's highs and lows. With a little effort, these numbers can increase and we can help with this. We've implemented a large network of local condo websites in order to provide useful info for our area's condos; from entertainment to investment. Click here to view rental revenue information for every condo in the Gulf Shores and Orange Beach, AL area.
The Gulf Coast's Condo Rental Market
Many of the gulf front condos in Gulf Shores and Orange Beach, AL are rental properties. Owners have numerous options regarding which company to use for marketing, but the end result is the same. Company's typically offer a few options to owners that differ in how much the owner will need participate. In one extreme, the management company handles everything and sends the owner a percentage, usually about 70%. In another extreme, the owner handles the bookings and talks to guests etc.... VRBO has a system that a lot of owners use that offers different options to owners, but again, it's all the same. It won't matter how this is set up because we send people directly to your rental page allowing vacationers to book. This is free to our clients. Visit this page to read about how our network can help increase rental revenue.
A lot of investors are simply unaware of the huge rental potential these gulf front condos offer, especially when properly setup. Here are some examples. A Turquoise Place 3BR condo in Orange Beach, AL sells at $950,000, which is a lot, but the condos bring in $100,000+ per year. It's easy to see how this revenue influences affordability. Another example, at half the price, is the Lighthouse in Gulf Shores, AL. A two bedroom condo in the Lighthouse is currently selling for $450,000 and the rental revenue is approximately $52,000 annually. Yet another example at about half the price is Royal Palms in Gulf Shores, AL. A one bedroom condo in Royal Palms sells for around $300,000 and the rental revenue is in the mid thirties. Based from this info, it's easy to infer a 10-12% revenue mark for gulf front condos. We offer a free service for our clients that uses our sales network to supplement their rental revenue. We've found that approximately 2,500 people use our network everyday to shop through condos while planning their vacations. It's easy for us to add our client's condos and link info to their online management page which directly relates to additional bookings. Please let us know if you have questions or need additional info for condos along with Gulf Coast.