Florida Keys Investment opportunities
With all the abundant recreational opportunities mixed in with a great climate the Keys attract people...lots of people.
Tourists in turn need places to stay and people relocating need places to rent either part time or while they close on a home or find an apartment. The Keys are definitely a happening place.
Types of Investments
Aside from commercial investments the two situations most people are looking for in Florida are
• Vacation homes or Condos that can be rented out … Generally a purchase involves a 1031 tax exchange or just someone looking for a second home in an area that he/she or the family will use occasionally.
• A person looking for a home to eventually retire to and rent out in the meantime to help pay the mortgage.
• The best areas to rent are anywhere near the water and the best rents will start at open water locations, followed by homes/condos with a partial view to homes on canals. The neighborhood and the furnishings will also dictate the rent amounts you can get. In the Keys-the best situation was a home at least three bedrooms and up on the Ocean or Gulf with a pool and a boat dock. In some cases these bring as much as $5000.00 per week, depending on the home/area.
• It is very important that you find out early on which residential areas and which condo associations allow weekly rentals-as this will be generally be your best return.
• In some cases you may want to just rent out long term and skip the dealings with handy men and cleaning services.
• In all of this—the most important thing is that you find a qualified adent. He/she can guide you through the process completely—including setting up property management.
As to The Keys and it’s areas-where would the best rentals probably be located?
• *A condo or single family home anywhere on the water-either Ocean or Gulf or a canal and anywhere in the Keys (unless they prohibit vacation rentals. (see below)
• *The rental rates will vary from island to island due to boating depth and neighborhoods, SEE information below,
• *Key West downtown is seeing strong growth. In short some people are going away from life in the suburbs and opting for closeness to theatre, restaurants and the vitality of a city environment. So, don’t overlook the downtown areas.
Sunday, February 26, 2006
Friday, February 24, 2006
Sarasota Investments
Sarasota and Sarasota County Investment opportunities
Due to the incredible growth in tourism and people relocating to the South East coast of Florida, investments ( both commercial and rental) in this region should be a strong consideration.
Aside from commercial investments the two situations most people are looking for in Florida are:
• Vacation homes/2nd homes, both single family or Condos that can be rented out.
• Generally a purchase involves a 1031 tax exchange or just someone looking for a second home in an area that he/she or the family will use occasionally.
• A home to eventually retire to and rent in the meantime to help pay mortgage costs.
As to Sarasota County-where would the best rentals probably be located? The following is a partial list.
• Venice Beach
• Bradenton, the inlets and the intracoastal
• Homes and Condos on the Ocean, canals, inlets, golfcourses or bays (all locations)
• Crescent Beach
• Englewood beach
• Downtown Sarasota (historic district)
*To get an idea on rates charged and potential income of vacation (short term) rentals, see http://www.vacationrentals.com/vacation-rentals/Sarasota-Florida.html
Long term
*The downtown areas in cities are also seeing strong growth. In short some people are going away from life in the suburbs and opting for closeness to theatre, restaurants and the vitality of a city environment. So, don’t overlook the downtown areas
To know:
• The best areas to rent are generally near the water and the best rental income will start at open water locations, followed by homes/condos with a partial view to homes on canals. The neighborhood and the furnishings will also dictate the rent amounts you can get.
• In the Keys-the best situation was a home at least three bedrooms and up on the Ocean or Gulf with a pool and a boat dock. In some cases these bring as much as $5000.00 per week, depending on the home/area.
• It is very important that you find out early on which residential areas and which condo associations allow weekly rentals-as this will be generally be your best return.
• In some cases you may want to just rent out long term and skip the dealings with handy men and cleaning services.
• In all of this—the most important thing is that you find a qualified agent. He/she can guide you through the process completely—including setting up property management.
Due to the incredible growth in tourism and people relocating to the South East coast of Florida, investments ( both commercial and rental) in this region should be a strong consideration.
Aside from commercial investments the two situations most people are looking for in Florida are:
• Vacation homes/2nd homes, both single family or Condos that can be rented out.
• Generally a purchase involves a 1031 tax exchange or just someone looking for a second home in an area that he/she or the family will use occasionally.
• A home to eventually retire to and rent in the meantime to help pay mortgage costs.
As to Sarasota County-where would the best rentals probably be located? The following is a partial list.
• Venice Beach
• Bradenton, the inlets and the intracoastal
• Homes and Condos on the Ocean, canals, inlets, golfcourses or bays (all locations)
• Crescent Beach
• Englewood beach
• Downtown Sarasota (historic district)
*To get an idea on rates charged and potential income of vacation (short term) rentals, see http://www.vacationrentals.com/vacation-rentals/Sarasota-Florida.html
Long term
*The downtown areas in cities are also seeing strong growth. In short some people are going away from life in the suburbs and opting for closeness to theatre, restaurants and the vitality of a city environment. So, don’t overlook the downtown areas
To know:
• The best areas to rent are generally near the water and the best rental income will start at open water locations, followed by homes/condos with a partial view to homes on canals. The neighborhood and the furnishings will also dictate the rent amounts you can get.
• In the Keys-the best situation was a home at least three bedrooms and up on the Ocean or Gulf with a pool and a boat dock. In some cases these bring as much as $5000.00 per week, depending on the home/area.
• It is very important that you find out early on which residential areas and which condo associations allow weekly rentals-as this will be generally be your best return.
• In some cases you may want to just rent out long term and skip the dealings with handy men and cleaning services.
• In all of this—the most important thing is that you find a qualified agent. He/she can guide you through the process completely—including setting up property management.
Saturday, February 18, 2006
Sarasota Cost of Living
Sarasota and Sarasota County Cost of Living
The cost of living index is based on the composite price of groceries, housing, utilities, transportation, health care, clothing and entertainment.
Cost of living indexes will generally be higher in areas that offer access to beaches, culture, arts and recreation. In addition areas, that offer a wider variety of services such as health and education will run higher due to higher wages, and increased quality of living.
• Cost of living indexing explanation
A figure of 100 points is used as an average both for the USA and Florida. For example:
Boise Idaho is ranked at a 99
Boston Mass is rated at 240
San Francisco at 217
Statewide, Florida cities come in from a low of 90 and up.
One way to compare Florida areas to salary requirements
For example-If you were relocating from Portland Oregon (whose rate 1s 120) to Orlando, and you currently make $50,000 per year, the formula is as follows
Take the destination index, in this case Orlando-99.8 and divide by Portland’s index-120, then multiply by a salary of $50,000. This will give you a figure of $41,583, which would be required to make in Orlando and have the same quality of life.
See comparable Florida statewide
* Re cost of living--in some areas Real Estate has went up dramatically however costs that factor in such as food, transportation, rents etc have not increased at the same rate-so in some areas, even though housing is expensive, the oerall rating may still be low.
Sarasota as of the 3rd quarter 2005, comes in at a Cost of Living index of107.0
A lower cost of living means you keep more of what you make. That mixed in with a great quality of life makes the coastal communities of Sarasota County very appealing.
There is one thing you need to be aware of and that is the housing market is going through the roof. Prices have gone up 30 to 40 percent in just the last year—there is some sign that things are slowing down but in comparison to other parts of the country (see below) and given the lifestyle here, is why the areas real Estate market is hot.
• Information from Accra-Third qtr 2005
• Daytona 101.0
• Ft Lauderdale 117.4
• Jacksonville 92.7
• Miami/Dade 115.4
• Orlando 100.8
• Pensacola 97.1
• Sarasota 107.0
• Tampa 97.2
• Ft Myers 103.0
• Clearwater 94.3
• St Pete 94.3
• Bradenton 95.8
• Gainesville 99.4
• Port Charlotte 95.4
• Fl Keys 112.43
• West Palm Beach 114.1
• Naples 122.9
(Population Weighted-State Average=100
See national comparisons
Cost of living (100 = nationwide average)
See national comparisons of cost of living:
Cost of living (100 = nationwide average)
The cost of living index is based on the composite price of groceries, housing, utilities, transportation, health care, clothing and entertainment.
Cost of living indexes will generally be higher in areas that offer access to beaches, culture, arts and recreation. In addition areas, that offer a wider variety of services such as health and education will run higher due to higher wages, and increased quality of living.
• Cost of living indexing explanation
A figure of 100 points is used as an average both for the USA and Florida. For example:
Boise Idaho is ranked at a 99
Boston Mass is rated at 240
San Francisco at 217
Statewide, Florida cities come in from a low of 90 and up.
One way to compare Florida areas to salary requirements
For example-If you were relocating from Portland Oregon (whose rate 1s 120) to Orlando, and you currently make $50,000 per year, the formula is as follows
Take the destination index, in this case Orlando-99.8 and divide by Portland’s index-120, then multiply by a salary of $50,000. This will give you a figure of $41,583, which would be required to make in Orlando and have the same quality of life.
See comparable Florida statewide
* Re cost of living--in some areas Real Estate has went up dramatically however costs that factor in such as food, transportation, rents etc have not increased at the same rate-so in some areas, even though housing is expensive, the oerall rating may still be low.
Sarasota as of the 3rd quarter 2005, comes in at a Cost of Living index of107.0
A lower cost of living means you keep more of what you make. That mixed in with a great quality of life makes the coastal communities of Sarasota County very appealing.
There is one thing you need to be aware of and that is the housing market is going through the roof. Prices have gone up 30 to 40 percent in just the last year—there is some sign that things are slowing down but in comparison to other parts of the country (see below) and given the lifestyle here, is why the areas real Estate market is hot.
• Information from Accra-Third qtr 2005
• Daytona 101.0
• Ft Lauderdale 117.4
• Jacksonville 92.7
• Miami/Dade 115.4
• Orlando 100.8
• Pensacola 97.1
• Sarasota 107.0
• Tampa 97.2
• Ft Myers 103.0
• Clearwater 94.3
• St Pete 94.3
• Bradenton 95.8
• Gainesville 99.4
• Port Charlotte 95.4
• Fl Keys 112.43
• West Palm Beach 114.1
• Naples 122.9
(Population Weighted-State Average=100
See national comparisons
Cost of living (100 = nationwide average)
See national comparisons of cost of living:
Cost of living (100 = nationwide average)
Saturday, February 11, 2006
Florida Weather
Florida Weather
The weather is Florida’s biggest asset next to the sand and surf. In short we have milder winter weather than anywhere else in the 48 states…think about that next time you look at your heating bill!
Also we have almost zero air pollution. (Winds from the Oceans disperse the air pollutants) You can see the stars at night.
Acid rain has not affected us like the rest of the country.
The temperature drop from day to night is on average never over 25°---compare that with Minnesota, which can vary as much as an 84°.
Some statistics:
• Average max temps in the Florida Panhandle range from 80° to a low of 56°
• Average max temps in Central Fl range from 84° to a low of 60°
• Average max temps in Southern Fl, range from 86° to a low of 66°
• With the exception of Hawaii, no other state extends further into the tropics than Florida. Key West for example is on the same 24° 30N, that Tampico Mexico and Sao Paulo Brazil are. This makes the angle of the sun higher or more perpendicular hence more warm weather.
To see average January temperatures across the United States go to http://www.mapsofworld.com/usa/thematic-maps/usa-temprature-january.html
Compare where you live or want to live in Florida. For more specific info, look at the area you are interested in and go to the weather page.
So what about the rainy season and humidity?
We are a tropical climate, so our rainy season comes in the summer. Generally it will rain hard for a half hour then subside. It does get humid then. Although not as bad as you’d think. Our water breezes really help cool us off.
Hurricanes
And, finally, hurricanes…..we have to talk about this, and you, our reader, have to think about it. Florida lies in the tropics, or more exactly, pretty close to the tropics. Much of the American Southeast is at risk for hurricanes, from Texas to the Carolina coasts, year in, year out. But in the popular imagination, Florida is the bullseye.
So what’s the reality, and what is the relevance? The reality is, yes, it’s true; we are in the bull’s eye. And the relevance? A zillion people continue to relocate to Florida. Why? Because, perhaps like you, they feel (rightly) that the percentages favor them, that they are not likely to encounter a hurricane. Really. In the grand scheme of things, not many hurricanes make landfall in Florida. So their confidence is reasonable.
Anyway, before hurricanes do threaten Florida, there is plenty of warning; and except for people who live directly on the beaches (dangerous), you can prepare and defend pretty successfully in almost all cases. When the Authorities say you must evacuate (chiefly from the beaches and adjacent areas), you should. If you live in the Keys, that’s always critical, at an earlier stage, say, than the rest of Florida’s east or west or north coasts, because you’re very close to the action no matter where you live in the Keys. So there’s less time for error.
I experienced a Category 3 major hurricane in the Keys. In the future I would evacuate. Every hurricane season in the Keys, you worry (Jimmy Buffet even wrote a song about sitting around waiting for hurricanes that never materialized). The first serious hurricane in fifty years was Georges in 1998 (my experience). But there have been lots of worries, lots of close calls, and like this year (2005) a fair number of combinations of tropical storm force winds, higher tides with some flooding, and salt-blown browning of the vegetation. So the reality is, you live in the Keys, you worry about it.
The other part of Florida that seems uniquely vulnerable, especially in the aftermath of recent northern Gulf of Mexico history, is Florida’s Panhandle. It’s important to put this in perspective. Yes, Pensacola and its wider area have tended over the past 30 years to be hit more frequently than the rest of Florida by major hurricanes, but in the 30-40 years prior to that, the situation was exactly reversed: Pensacola was less frequently hit than peninsular Florida. Or to put it a different way, the Panhandle area of Florida has been “hit” by just 6 storms Category 3 or higher since 1940, while peninsular Florida suffered 10 such storms during that same period.
The dangers can be largely counted on fingers. Hurricane Donna hit southwest Florida in 1960, Hurricane Charlie I about the same area in 2004.
Hurricane Andrew hit Miami-Homestead in 1992, but you have to go back to the 1920’s for anything comparable.
I moved to Melbourne Florida (central east coast) partly because the area NEVER got hurricanes (and in fact the whole northeast and central Florida coast is in a geographical bight that in fact does not get hit, but Melbourne is on the cusp, a bit south). My first year (2004) living there, the Central East Coast got two of them. So much for expectations. Still, the likelihood of that happening again remains very low. Moreover, if you lived inland just a few miles that summer of 2004, because of the buffer of the long barrier island and the wide ICW/Indian River Lagoon, the net effects of the hurricanes were pretty mild.
In any case, the likelihood per the historical record of that happening again remains very low. The reality is that the weather on both Florida’s east and west coast is great, and you really don’t have to worry yourself through hurricane season, like folks perhaps do in some other parts of Florida (the Keys, the north coast of the Gulf of Mexico).
Bottom line? I would be remiss if I did not tell you that hurricanes are a potential fact of life. But what I’ve outlined above underscores the reality that the very occasional occurrence is the exception, absolutely not the summertime rule.
More about Hurricanes and Observations..
If you live on the coast you stand the greatest chance of having one affect you. Some areas of Florida have gone fifty years plus without one but you never know.
In my opinion, the best thing you can do is buy a home that was built after Andrew-August 92 that was built to stricter building codes. Have window protection and a backup generator and make sure your insurance is up to date. If they ask you to leave, do it!
Realize-If you live in an older home that was not built up to the stricter building codes (After Hurricane Andrew-August 1992) or you live in a mobile home you stand the best chance of having major structural damage.
Living on the beach in a mobile home is asking for it. Although, you may never have a problem, you’re still definitely taking your chances. Barrier islands and open-water Ocean or Gulf front are the most prone to damage.
Having lived in California, I prefer the threat of a hurricane however as opposed to an earthquake. At least you have a warning.
• For current information about hurricanes go to http://www.nhc.noaa.gov/
• For 2005 climate info by areas go to http://www.coaps.fsu.edu/climate_center/LCD/2005LCD.html
• For current weather forecasts by cities go to http://iwin.nws.noaa.gov/iwin/fl/fl.html
*Living in a waterfront home typically means that you will pay a higher Insurance premium. The insurance is higher due to flood and wind concerns.
Part of this is also because the pricing on these homes is higher so there is more value to insure against.
*Despite four hurricanes in 2004, the number of Florida visitors rose 7% to an all-time high of 79.8 million last year and is on target to hit 80 million this year.
Having said all this, I can’t imagine living elsewhere. It is really great to wake up and it’s sunny out.
We spend over half our lives indoors…so when you do go outside, wouldn’t it be nice if it was warm and sunny?
The weather is Florida’s biggest asset next to the sand and surf. In short we have milder winter weather than anywhere else in the 48 states…think about that next time you look at your heating bill!
Also we have almost zero air pollution. (Winds from the Oceans disperse the air pollutants) You can see the stars at night.
Acid rain has not affected us like the rest of the country.
The temperature drop from day to night is on average never over 25°---compare that with Minnesota, which can vary as much as an 84°.
Some statistics:
• Average max temps in the Florida Panhandle range from 80° to a low of 56°
• Average max temps in Central Fl range from 84° to a low of 60°
• Average max temps in Southern Fl, range from 86° to a low of 66°
• With the exception of Hawaii, no other state extends further into the tropics than Florida. Key West for example is on the same 24° 30N, that Tampico Mexico and Sao Paulo Brazil are. This makes the angle of the sun higher or more perpendicular hence more warm weather.
To see average January temperatures across the United States go to http://www.mapsofworld.com/usa/thematic-maps/usa-temprature-january.html
Compare where you live or want to live in Florida. For more specific info, look at the area you are interested in and go to the weather page.
So what about the rainy season and humidity?
We are a tropical climate, so our rainy season comes in the summer. Generally it will rain hard for a half hour then subside. It does get humid then. Although not as bad as you’d think. Our water breezes really help cool us off.
Hurricanes
And, finally, hurricanes…..we have to talk about this, and you, our reader, have to think about it. Florida lies in the tropics, or more exactly, pretty close to the tropics. Much of the American Southeast is at risk for hurricanes, from Texas to the Carolina coasts, year in, year out. But in the popular imagination, Florida is the bullseye.
So what’s the reality, and what is the relevance? The reality is, yes, it’s true; we are in the bull’s eye. And the relevance? A zillion people continue to relocate to Florida. Why? Because, perhaps like you, they feel (rightly) that the percentages favor them, that they are not likely to encounter a hurricane. Really. In the grand scheme of things, not many hurricanes make landfall in Florida. So their confidence is reasonable.
Anyway, before hurricanes do threaten Florida, there is plenty of warning; and except for people who live directly on the beaches (dangerous), you can prepare and defend pretty successfully in almost all cases. When the Authorities say you must evacuate (chiefly from the beaches and adjacent areas), you should. If you live in the Keys, that’s always critical, at an earlier stage, say, than the rest of Florida’s east or west or north coasts, because you’re very close to the action no matter where you live in the Keys. So there’s less time for error.
I experienced a Category 3 major hurricane in the Keys. In the future I would evacuate. Every hurricane season in the Keys, you worry (Jimmy Buffet even wrote a song about sitting around waiting for hurricanes that never materialized). The first serious hurricane in fifty years was Georges in 1998 (my experience). But there have been lots of worries, lots of close calls, and like this year (2005) a fair number of combinations of tropical storm force winds, higher tides with some flooding, and salt-blown browning of the vegetation. So the reality is, you live in the Keys, you worry about it.
The other part of Florida that seems uniquely vulnerable, especially in the aftermath of recent northern Gulf of Mexico history, is Florida’s Panhandle. It’s important to put this in perspective. Yes, Pensacola and its wider area have tended over the past 30 years to be hit more frequently than the rest of Florida by major hurricanes, but in the 30-40 years prior to that, the situation was exactly reversed: Pensacola was less frequently hit than peninsular Florida. Or to put it a different way, the Panhandle area of Florida has been “hit” by just 6 storms Category 3 or higher since 1940, while peninsular Florida suffered 10 such storms during that same period.
The dangers can be largely counted on fingers. Hurricane Donna hit southwest Florida in 1960, Hurricane Charlie I about the same area in 2004.
Hurricane Andrew hit Miami-Homestead in 1992, but you have to go back to the 1920’s for anything comparable.
I moved to Melbourne Florida (central east coast) partly because the area NEVER got hurricanes (and in fact the whole northeast and central Florida coast is in a geographical bight that in fact does not get hit, but Melbourne is on the cusp, a bit south). My first year (2004) living there, the Central East Coast got two of them. So much for expectations. Still, the likelihood of that happening again remains very low. Moreover, if you lived inland just a few miles that summer of 2004, because of the buffer of the long barrier island and the wide ICW/Indian River Lagoon, the net effects of the hurricanes were pretty mild.
In any case, the likelihood per the historical record of that happening again remains very low. The reality is that the weather on both Florida’s east and west coast is great, and you really don’t have to worry yourself through hurricane season, like folks perhaps do in some other parts of Florida (the Keys, the north coast of the Gulf of Mexico).
Bottom line? I would be remiss if I did not tell you that hurricanes are a potential fact of life. But what I’ve outlined above underscores the reality that the very occasional occurrence is the exception, absolutely not the summertime rule.
More about Hurricanes and Observations..
If you live on the coast you stand the greatest chance of having one affect you. Some areas of Florida have gone fifty years plus without one but you never know.
In my opinion, the best thing you can do is buy a home that was built after Andrew-August 92 that was built to stricter building codes. Have window protection and a backup generator and make sure your insurance is up to date. If they ask you to leave, do it!
Realize-If you live in an older home that was not built up to the stricter building codes (After Hurricane Andrew-August 1992) or you live in a mobile home you stand the best chance of having major structural damage.
Living on the beach in a mobile home is asking for it. Although, you may never have a problem, you’re still definitely taking your chances. Barrier islands and open-water Ocean or Gulf front are the most prone to damage.
Having lived in California, I prefer the threat of a hurricane however as opposed to an earthquake. At least you have a warning.
• For current information about hurricanes go to http://www.nhc.noaa.gov/
• For 2005 climate info by areas go to http://www.coaps.fsu.edu/climate_center/LCD/2005LCD.html
• For current weather forecasts by cities go to http://iwin.nws.noaa.gov/iwin/fl/fl.html
*Living in a waterfront home typically means that you will pay a higher Insurance premium. The insurance is higher due to flood and wind concerns.
Part of this is also because the pricing on these homes is higher so there is more value to insure against.
*Despite four hurricanes in 2004, the number of Florida visitors rose 7% to an all-time high of 79.8 million last year and is on target to hit 80 million this year.
Having said all this, I can’t imagine living elsewhere. It is really great to wake up and it’s sunny out.
We spend over half our lives indoors…so when you do go outside, wouldn’t it be nice if it was warm and sunny?
Sunday, February 05, 2006
Renting your home out a seasonal(vacation rental)or long term
Renting your home out as a seasonal(vacation rental)or long term.
Long term renters are generally easy to find as there is a shortage of homes for rent. So, if you want to buy something for retirement or a vacation home and rent it out to help your payments-this is typically the easiest way. (Long term rentals are considered to be anything over 6 months, as the tenants don't pay the 11.5% Florida tax)
• Generally long term rentals should be unfurnished.
• Initially the Property managemebnt firm will do a credit check before submitting a lease to you, then with your approval of the lease, they generally collect the first and last months rent plus a security deposit which is typically a months rental amount.
• As to utilities- The tenants typically take the lease to the water, electric, phone and cable people and have the utilities put in their name and of course they pay their own deposits. Garbage down here is included in your tax bill-so there is no garbage bill.
• Seasonal rentals. Currently you can only rent monthly or 28 days, meaning the owner can only rent the home out 12 times per year. This means about 5 months of income-Jan-Feb-Mar and July-August. There are some April and June monthlies.
• As to finding people to rent for the rest of the time! some Keys brokers deal with navy transfers who generally need something for 2-3 months while they sell their home and buy another. So if it is the off season, they will try to fill your home up this way. Another way to fill in the gaps is to Companies that come down here for construction etc. Most of the major government and private building projects are done by outside firms. Their management people will generally want a nicer situation so they will generally rent homes at better than average rates.
• As to what is the best rental situation , that is size, which areas, views, pools, how water and boating accessibility affects rental amounts and the typical rental amounts for both long and short term, plus the fees involved, check with your REALTOR or property manager..
As to extra costs and what is necessary to have a Home as a Rental.
• When you rent your home out you need to license it through the County. This costs $25.00 and the broker can handle the paperwork for you. The County and the Tax people want the home licensed so they know where there may be tax dollars coming in. When your home is used as a rental, in effect you are operating the same as a hotel or motel and so come under their safety guidelines.
• Every bedroom and the main living area must have a hardwired smoke detector and there must also be an escape light. This light comes on in case of a power outage-this also must be hardwired. (About $350.00 installed smoke detectors and escape light for a 2/2)
• There also needs to be a professional quality refillable fire extinguisher that is approved by the fire department (about $55.00). This would be the same as you'd find in a restaurant or hotel room. There needs to be a dead bolt on the door that works from the inside and is a different key than the main door. All of these issues help protect your liability in cases of fire/break in.
• When the home complies with all of the above and we have the signed contract, then it can go into the rental pool.
Long term renters are generally easy to find as there is a shortage of homes for rent. So, if you want to buy something for retirement or a vacation home and rent it out to help your payments-this is typically the easiest way. (Long term rentals are considered to be anything over 6 months, as the tenants don't pay the 11.5% Florida tax)
• Generally long term rentals should be unfurnished.
• Initially the Property managemebnt firm will do a credit check before submitting a lease to you, then with your approval of the lease, they generally collect the first and last months rent plus a security deposit which is typically a months rental amount.
• As to utilities- The tenants typically take the lease to the water, electric, phone and cable people and have the utilities put in their name and of course they pay their own deposits. Garbage down here is included in your tax bill-so there is no garbage bill.
• Seasonal rentals. Currently you can only rent monthly or 28 days, meaning the owner can only rent the home out 12 times per year. This means about 5 months of income-Jan-Feb-Mar and July-August. There are some April and June monthlies.
• As to finding people to rent for the rest of the time! some Keys brokers deal with navy transfers who generally need something for 2-3 months while they sell their home and buy another. So if it is the off season, they will try to fill your home up this way. Another way to fill in the gaps is to Companies that come down here for construction etc. Most of the major government and private building projects are done by outside firms. Their management people will generally want a nicer situation so they will generally rent homes at better than average rates.
• As to what is the best rental situation , that is size, which areas, views, pools, how water and boating accessibility affects rental amounts and the typical rental amounts for both long and short term, plus the fees involved, check with your REALTOR or property manager..
As to extra costs and what is necessary to have a Home as a Rental.
• When you rent your home out you need to license it through the County. This costs $25.00 and the broker can handle the paperwork for you. The County and the Tax people want the home licensed so they know where there may be tax dollars coming in. When your home is used as a rental, in effect you are operating the same as a hotel or motel and so come under their safety guidelines.
• Every bedroom and the main living area must have a hardwired smoke detector and there must also be an escape light. This light comes on in case of a power outage-this also must be hardwired. (About $350.00 installed smoke detectors and escape light for a 2/2)
• There also needs to be a professional quality refillable fire extinguisher that is approved by the fire department (about $55.00). This would be the same as you'd find in a restaurant or hotel room. There needs to be a dead bolt on the door that works from the inside and is a different key than the main door. All of these issues help protect your liability in cases of fire/break in.
• When the home complies with all of the above and we have the signed contract, then it can go into the rental pool.
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