Marathon Fl Homes for sale: Karen Angle » Fl Keys Investment opportunities

Fl Keys Investment Opportunities

admin — Thu, 11 Feb 2010 16:06:15 +0000

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.

Renting your home out as a seasonal (vacation rental)or long term.
Long-term renters are generally easier 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 your agent’s company will do a credit check before submitting a lease to you, then with your approval of the lease, they typically collect the first and last months rent plus a security deposit which is typically a months rental amount.

As to utilities-
The tenants generally 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. In most areas of Florida, garbage is included in the tax bill-so there is no separate garbage bill.

Seasonal rentals.
Most residential areas 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.

*Ask your REALTOR if there are any Condos or areas that do allow weekly rentals as this will definitely be your best return.
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, ask your agent.
As to extra costs and what is necessary to have a Home as a Rental.
When you rent your home out you generally need to license it through the County. This costs is typically minimal and your agent’s company should be able to handle the paperwork for you.
The County and the Tax people want the homes 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 they come under their safety guidelines.

This applies to the Keys but may be the cases statewide:
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 $450.00 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 your agent has a signed contract from you authorizing them as a rental agent, then it can go into the rental pool.

What about Hurricane preparation?

In the event of an impending Hurricane, a handyman or someone else can be hired to put up the storm shutters, bring in the lawn and patio furniture, etc for a fee-most agents have too many homes for them to do it individually.

*This agreement should be set up in advance by the homeowner and the handyman. Your agent can find someone to do this.

What makes a good Vacation Rental

A clean, well-maintained home on a canal or open water.
Typically one of the bedrooms should have a set of twin beds if the renters are bringing children.
Good linens and towels and a backup set. This is especially important for monthly renters.
The washer, dryer and refrigerator should be newer if possible.
A good Television hooked up to cable (about $35.00 per month) and a CD or tape stereo system.
The kitchen must be completely outfitted. A microwave is also very important for renters.
Patio and/or Lawn-Deck furniture. If there is an upper deck, a table and chairs plus loungers.
On the waterside, a set of loungers and chairs.

Repeat renters

If the renters have a good experience, they will come back. We see this especially with people that book two to three months a year.

Be sure to check on the Rental laws-what is going on in your area now and what is proposed? These can vary dramatically based on the area.

KAREN ANGLE
REALTOR®
Coldwell Banker Schmitt
11050 Overseas Highway
Marathon Fl, 33050
(305) 289-6504 Business
(305) 731-6219 Cell
(305) 743-7012 Fax
1-800 366-5181 Ext 6504
E-MAIL
www.allfloridakeysrealestate.com

Fl Keys Investment Opportunities

admin — Mon, 11 Jan 2010 17:45:26 +0000

Using your Home as a rental

Renting your home out as a seasonal(vacation rental)or long Long term renters are easy to find as there is a shortage of homes for • Generally long term rentals should be unfurnished.
• Initially we do a credit check before submitting a lease to you, then • As to utilities- The tenants take the lease to the water, electric, • Seasonal rentals. Currently we can only rent monthly or 28 days, meaning • As to finding people to rent for the rest of the time! I deal a lot • As to what is the best rental situation , that is size, which areas, • When you rent your home out you need to license it through the County. • Every bedroom and the main living area must have a hardwired smoke • There also needs to be a professional quality refillable fire extinguisher • When the home complies with all of the above and we have the signed 1 Coldwell Banker agrees to manage the home for a period of one year 2 Our fee for vacation rentals is 20%—what is really important here • There are no hidden fees-such as credit card charges etc.
• We typically send you the money within 2 weeks of receiving it÷we do • There are no charges for going up on our Web sites÷5 in all.
• There are no charges for the pictures that are taken.
• There are no charges for any specific flyers, brochures or ads that • Please go to www.rentalsfloridakeys.com
• We actively and aggressively manage your home. Meaning we get the best • All of the computers in the 6 Coldwell Banker Schmitt offices throughout • We have Handymen, Electrical, Plumbing, Landscaping, Pest control and This is very simple. You would call the rental manager and have him block How are emergency repairs handled?
• We have handymen available that can take care of small emergencies • In the event of an impending Hurricane, the handyman or someone else • A clean, well-maintained home on a canal or open water.
• Typically one of the bedrooms should have a set of twin beds if the • Good linens and towels and a backup set. This is especially important • The washer, dryer and refrigerator should be newer if possible.
• A good Television hooked up to cable (about $35.00 per month) and a • The kitchen must be completely outfitted. A microwave is also very • Patio and/or Lawn-Deck furniture. If there is an upper deck, a table • On the water side, below a set of loungers and chairs.We get a lot • If you’re reading this on my web site you have the answer. If not most • www.dennishanda.com www.floridakeysrealestate.com www.rentalsfloridakeys.com • All of our sites are linked to Key West or www.flakeys.com which averages • The balance come through National Advertising placed in magazines such • Also all of our computers are networked meaning if someone is looking • All of our offices have a dedicated rental manager whose job is to • There are Duplexes throughout the lower Keys and a few 3-4 unit complexes. DUPLEXOn the water generally start at $600,000. Nicer ones (maintained-updated • In Key West, these can be good, especially if it’s located in Old Town • These type of situations run from about $850,000 and up. In Marathon • These are generally found in upper keys, Marathon and of course Key term.
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)
with your approval of the lease, we collect the first and last months rent plus a security deposit which is typically a months rental amount. We are very proactive in this area and I assure you the home is handled professionally.
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.
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.
with navy transfers÷they generally need something for 2-3 months while they sell their home and buy another. So if it is the off season, I try to fill your home up this way. Another way to fill in the gaps is to Companies that come down here. 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.
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, please contact me. As to extra costs and what is necessary to have a Home as a Rental.
This costs $25.00 and we 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.
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)
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.
contract, then it can go into the rental pool.SPECIFICS OF THE AGREEMENT
with the contract automatically renewing unless either side gives 90 day notice.
are the following points.
NOT hold it until the first of each month or split it out each month. We always collect cashiers checks from the renters so when the money is received, it is quickly processed through our main office and sent to you.
we run on our rental properties.
customers (qualified) We play by the 2 people per bedroom limit, and we work to keep it filled other than your personal usage
the Keys are linked. If a customer inquires about a home, it will show up on the rental agents computers.
appliance people that respond when there is an emergency.BOOKING THE HOME FOR THE OWNER.
out the home when you want to use it. We don’t charge a fee for any of that. Generally you would have us arrange for the home to be cleaned after you leave.FLORIDA BED TAX Florida charges a 11.5% tax on all hotel, motel, home rentals. We collect the money from the tenant and disperse it to the tax agency.CLEANING SERVICE The tenants pay this fee which varies based on the size of the home. On average a 2/2 is $100 and a 3/2 is $125.00.PETS AND SMOKING If the home is no smoking, that is put in the rental file and the tenants are informed before they book the home. If the home allows pets, we collect a pet deposit which is added to the standard security deposit of $500
or updates, as the owner requires. Since our company manages over 300 rentals, we also have a good working relationship with Plumbing, Electrical, Appliance and Carpet, Tile people.What about Hurricane preparation?
can be hired to put up the storm shutters, bring in the lawn and patio furniture, etc for a fee-as we have too many homes for us to do them individually. This agreement should be set up in advance by the homeowner and the handyman. We will help you find someone to do this.What makes a good Vacation Rental
renters are bringing children.
for monthly renters.
CD or tape stereo system.
important for renters.
and chairs plus loungers.
of repeat renters÷if the renters have a good experience, they will come back. We see this especially with people that book two to three months a year.Where do we get the renters
of our renters come through the Internet and one of our 4 sites.
www.fkren.com
over 500,000 views per month. Basically if anyone looks at Key West they find our sites.
as Island Living, Florida Sportsmen, Salt Water fishing and Dive magazines as well as regional publications and our own buyers guide.
for a specific situation such as open water it will show up on the computer immediately as to area, availability and price plus all other details.Who handles the renters?
rent the homes. In conclusion, there is a lot to discuss on rentals and this is used to just get you information regarding the main issues.BUYING RENTAL UNITS-DUPLEX-OR MORE UNITS
The 3 to 4 units are generally in Key West or Marathon.In looking at the return, generally it runs around 10% in the Keys÷this includes the large guesthouses. When a return of 14% or more comes up they generally go very quickly.
appliances-tile) go for $775,000 and up. A dry lot duplex can start at about $550,000. These generally have the best return percentage.3 TO 4 UNITSGenerally in Key West or Marathon.
and one or more of the units has a transient license, meaning it can legally rent weekly.
from about $750,000 and up.MOTELS-MULTIPLE UNITS
West. The more affordable ones ( one to two Million dollars) are generally from Marathon north to Key Largo. See Commercial section of my site. If there is a specific situation you want please let me know.