Buying Property in Florida - Choosing the Right Estate Agent

What is the secret to being a successful owner of a vacation home in Orlando?

Orlando is without doubt the most visited destination in the world for families and if you have a family you will no doubt understand that two weeks in an hotel with children cannot - by any means – be termed as a stress free holiday. This is why hundreds of thousands of families each and every year choose to rent a villa, vacation home or condo near to the attractions. With easy accessibility to the ever growing list of theme parks and only a short drive from either the Atlantic Ocean or the warm crystal waters and icing-sugar beaches of the Gulf coast, vacation homes in and around the Kissimmee and Orlando areas are continuing to be in high demand.

Your Orlando realtor / estate agent

One of the most important things to take into consideration is choosing the right estate agent in Orlando, one that has plenty of experience and lots of local contacts. There are thousands of realtors and real estate agents in and around Orlando, many of whom work on a part time basis to bring in a little extra income, some even do it as a hobby.

The Orlando realtor that you require should be dedicated to his clients and be willing to pick up the phone at least 6 days a week.

Licensed estate agents in Florida can legally sell real estate anywhere in the state and cooperate with other realtors via the use of MLS (Multi Listing Systems) where all listed properties on the market are openly shared and advertised. By simply discussing your requirements with one realtor that you get on with, you will save yourself hours of repeated questions by different realtors and at the same time you can build an honest working relationship with a professional who respects your loyalty.

When initially enquiring to estate agents in Orlando, take the time to explain exactly what you want to buy, why you want to buy and how you want the property will work for you. By giving as much information at the beginning of the buying process it allows your realtor to accurately and professionally recommend properties that meet your investing criteria instead of trying to guess what you want twenty times before finally getting to the truth.

They should have an intimate knowledge of the numerous communities and which rental zone rules they come under. The estate agent should know all about the new off plan developments and pre construction resorts in the area and be able to specify which of these will best meet your buying criteria.

Each buyer is different and with different needs – your realtor in Orlando should listen to your requirements and present the properties that best suit your needs and budget.

What has all of this got to do with renting out your property?

It is like building a house – if the foundations are not sound and secure then you are running the risk of it all falling down around you in the future. By investing in the right property in the first place, whether it be a brand new property, a resale or even an off plan development, you are putting in place the foundations of a successful investment.

Your realtor will introduce you to reliable and recommended management companies who have achieved a good rental history for their clients.

Management Companies

It is important to point out at this point that reputable management companies will be able to accurately assess the properties rental value on the market, evaluate how many weeks occupancy in years one and two.

Professional management companies will take on the day to day running and caretaking of your Florida home. They will arrange the cleaning, your taxes, your maintenance, gardeners and pool cleaning. Pest and termite inspection should be undertaken at least once a year. Typically management companies in the Orlando area will also advertise your property on the rental market and on the internet. Charges for these services range from $150 per month for the basic management fee, plus the cost of monthly maintenance services. Typically costs range between $250 to $375 per month with all necessary options included. Rental commissions can range between 12-50%. Ask to see the rental history of properties and if possible chat to owners who have their properties rented with the management company.

Please bear in mind that when you place your property with a management company and rental agency, although it represents another property to market in addition to the ones already on the books that are achieving regular occupancies, they will not be as motivated for the property to pay the mortgage costs as you will no doubt be.

Self promotion

That is why it is essential that you market your property yourself. By doing so you are potentially achieving a higher occupancy rate and at the same time saving % commissions from being paid to your management company or rental agency.
There are many different advertising portals on the internet and we recommend that you research several of them and advertise on the ones that seem to attract your potential rental clients. You can also arrange for payment by credit or debit card, “PayPal” to name just a couple.

Don’t just show glossy pictures of the holiday home, sell the local area and immediate attractions. Make recommendations as to where to eat, drink and shop. Set up an online guestbook so that new renters can read what previous guests have said about the property and their vacation. You need to market and sell your property to your friends and family don’t just leave it to the management company.

 When pricing the accommodation, be sensible – be willing to haggle a little if it is a last minute booking or out of season – remember that any income is better than no income especially in low season.

Furnishing

Furnishing your property is a crucial part of your investment and regardless what many companies tell you, make the property classy, stylish and appealing and leave your personal preferences out of the equation. Take a couple of hours and look through some of the rental properties in the area and learn about your competition in the market place. You will find that after twenty minutes that all the properties look the same. Most are poorly / cheaply furnished, many owners having purchased the developers furnishing pack or decided to save a few dollars by doing it on the cheap. This is a false economy of the grandest scale, if you do what everyone else is doing you are destined for mediocrity at best. Put your self in the tenant’s shoes, and evaluate which property you would rather stay in and then specify why.

If the home offers better facilities, better furnishings, more style and class to the one next door for the same or similar price then of course you would rather stay in that property.

When renting out your property in Florida you need to be aware of the fact that you will need to charge a tax to you client that you will be accountable for. This is a “hotel” tax that needs to be set aside to pay the tax offices. Florida law refers to these living or sleeping accommodations as "transient accommodations." Failure to do so could cost you your home. Professional management companies will advise you of how to charge your guests this tax and many will organise payments on your behalf to the tax authorities.

Buying Orlando vacation villas and holiday homes

Many first time owners dream of their private villa in Orlando that they can jet off too several times a year with the family and then rent it out to tourists that will pay off their mortgage for them. What a great idea!

Owners that can afford to pay 30% or more down, hence taking a lower mortgage may very well be able to enjoy this type of luxury. There are however many others that insist on paying the minimum amount out of their personal funds and raising the maximum mortgage. Unfortunately this alters the dynamics of the investment – the more you borrow, the more you pay back - if the monthly repayments are higher, naturally the pressure to generate a higher occupancy increases. It takes away the option of using your property when you like as no doubt your ideal holiday season is the same as everyone else and that is typically high season when should be receiving “top dollar” for your property. Should you struggle to get achieve sufficient bookings for your property – and this will probably be the case for the first year or so – you will find yourself in a position where you could run the risk of defaulting on your repayments and possibly your home?

This is not aimed to put you off buying a property in Florida just an honest opinion of how things work.