Have you ever considered investing in property in Florida by purchasing a real estate and then renting it out, but you just don’t seem to know where to start, what are the risks, and what to look for? If that’s the case, this is the right article for you. Purchasing property in Florida to use it as a holiday rental can be a great investment and a very smart idea. It can also be a horrible one if not done properly. The main difference between these situations is the several factors that should be taken into consideration to ensure the best protection of your investment and making sure that there won’t be any bad surprises in the way.

Don’t worry; it’s not as scary as it sounds! Let us walk you through the process of renting out your property in Florida through a specific number of important steps.

1- Pick the right location :

Renting out your place means that you first buy one! But owning a property in Florida is not enough to guarantee the success of your investment. It should, however, be a property that is capable of attracting renters and visitors, which means simply that it should be in an interesting location.

To ensure that, you should start by looking for properties that are located in an area close to, or surrounded by, major beaches, restaurants, parks, museums, important shopping boutiques, or any important touristic destinations. In other words, you should own real estate in an area where people coming from around the globe are looking for rent, instead of taking the terrible decision of putting your money into place in the middle of nowhere even if you like it. To make the right decision, keep an experienced real estate agent by your side to help you pick the best location for your investment and to help with complicated paperwork of the process. The agent will also have great use in estimating the property’s real value, so you don’t end up overpaying. They will also let you know how much you should charge once you start renting it out.

2- Go for what renters are looking for:

Now that we have discussed the importance of the real estate location, you need to look for a property that offers a fantastic guest experience. This means an experience of comfort and relaxation, and in many cases, an experience of prestige and luxury.  Make sure that your place has attractive features such as spacious bedrooms and bathrooms, a pool or/and a garden, a nice view, a well-designed interior. You should always remember that you should take into consideration upgrading the property if needed.

3- Pay attention to laws in place!

The compliance with the law doesn’t include the state’s laws exclusively and the restrictions and policies enforced by homeowner associations. To avoid being submitted to sanctions and fines and make sure you are complying with the laws of Florida, make sure you keep the right people by your side, meaning that you should be surrounded by an excellent real estate agent and a good lawyer, this will help you ease your mind since you will be delegating this mission to someone who knows what he is doing.

4- Apply for a hotel/motel lodging license:

You can’t start the activity of renting out your property without applying at first for this license. However, keep in mind that the cost of the permit varies according to many factors such as the location of the real estate, the size of the house, or the condo, and the date of the application.

The time in which you decide to apply can affect if you are going to end up paying a full-year fee or just a half-year fee. Getting your license will mean that the property you desire to rent out is going to be submitted to a sanitation and safety inspection. This inspection takes place after the

submission of the application and the fees for licensure, and it serves to confirm that your place is complying with the current safety laws such as swimming pool safety equipment.

5- Don’t forget to ensure your property:

Protecting your investment can’t be complete without insuring your property against any potential damage such as fire, smoke, wind, hail, vandalism, and theft. However, you can still cover minor damages by requesting a security deposit from your guests. However, bear in mind that most insurance policies usually don’t cover damages resulting from events such as tsunamis and floods, standing water, and several other sources of water. Most policies also exclude extreme circumstances like nuclear events or acts of war.

6- Get a manager for your property!

This option is specifically important in case your permanent house is not based in the same area or the same state, which will mean a huge difficulty in your ability to manage your investment.

If that’s the case, hiring a management company can be a very smart idea, for many reasons.

First of all, the management company plays a huge role in advertising your place and making sure it is known among the tourists, which automatically means that you will get more guests and more profit than what you could have gotten on your own. On the other hand, the management company takes care of many other issues, such as the protection and the maintenance of the property, and of course, manages the arrival and departure of the guests and ensures that they are comfortable and don’t need anything. If instructed, the management company can also take care of the security deposits that we mentioned above.

In conclusion, going through the process of renting out your property in Florida might be complicated and tiring. Still, you can make it smoother by following this guide and making sure that you have chosen the right location for the property; you have surrounded yourself by a good real estate agent, a good lawyer, and a good management company. In the end, don’t forget to secure your investment!

If you have ever tried to sell a house while buying another one, you know how messy and stressful it can get, because, sadly, sometimes things just don’t go exactly as planned.

Things can become even more complicated if you are depending on receiving the price of the place that you are selling to buy your next home, but it’s taking longer… so much longer to get sold than what you were expecting.

Don’t lose hope; going through this whole process may be difficult, but it’s not, by any way, impossible, especially with the help of a skilled real estate agent, and by following these simple steps that we assembled for you, so you can relax:

1-  It’s all about the timing!

Succeeding the process of selling and buying a house in the same period of time depends very much on the transactions’ timing. However, this factor is determined by the situation of the housing market.

In fact, if you are in a seller’s market, your house has to be market-ready, so it can sell faster, mostly if you have chosen the right price, so you need to be careful about your finances and selective about the offers that you are receiving, since you need to make an offer in the right time or the place that you desire to buy, and since you are less likely to have much flexibility when it comes to postponing the closing date.

On the other hand, if you’re in what’s called a buyer’s market, selling your current house may take more time; in this case, you should be more patient when it comes to making an offer on the place you want to buy, at least until a suitable buyer comes along.

2 – Choose the right people for the job:

Picking the right timing is good, but it’s not enough. You need an experienced real estate agent by your side, not only to help you through the complicated process of selling and buying at the same time but also to help you estimate realistically the price that your current place is worth.

In other words, getting a good real estate agent means that you will know exactly how much you should expect as a price for your current house, and how much you should accept as an offer for your next place. Therefore, you won’t end up overpaying unknowingly. You will also be aware of all the expenses related to closing the deals, so you will not be facing any (bad) surprises, and of course, all that while getting someone to take the pressure off you when it comes to all the related complications to the paperwork required in selling and buying houses.

3 –  Don’t focus entirely on the price:

Getting the cost of your dreams on your house and getting a fantastic deal on the house you wish to buy is the best-case scenario for anyone who desires to go through the process of buying and selling in the same period.

However, going smoothly through this operation requires more than just focusing on the price.

It would help if you also considered negotiating the date of the closing of both deals in a way that they align perfectly, or at least good enough, with each other.

Having both deals closed simultaneously or in only a few days of difference can wash away all the potential hidden expenses that can appear if you didn’t give much importance to the closing dates.

4 –  Have an escape route:

To avoid living the nightmare of being unable to get your new place because your mortgage has been declined, or even being in a position where you lack the resources to close on your next place, you should consider having an “escape route.”

What’s that? You may ask.

Well, it’s no more than a contingency, which is a clause included in offers that give parties the right to back out of the contract under certain circumstances, like, let’s just say, the case where you couldn’t sell your current place.

This clause has a huge role in protecting you as a buyer since we don’t live in a perfect world where everything goes as we wish, so having a way to get out of a deal when things go (very) bad, can be very relieving. 

5 –  In case you have no escape route:

Just in case you weren’t aware of the existence nor of the importance of contingency clauses, don’t panic! There are other ways you can still save the day if everything about your plan goes completely south.

If you find yourself stuck with two houses (if you bought your next house but couldn’t sell yours yet), you can rent your current house to cover the expenses.

And in case you did sell your place, but the deal about your next home hasn’t closed yet, you can always find a place to rent until you can finally move; however, you may also need to rent another place if you own a big amount of possessions.

However, and in case the previous option is overwhelming for you, here is another idea: you can request the new owners to wait until you move out to your next place, in exchange for a rent that you pay them.

In conclusion, even if the whole process of selling your current house and buying the next one at the same time is exhausting, some ways can make it smoother than what it usually is.

Most importantly, finding the right real estate agent is vital in succeeding in the process. A realtor that understands your needs and demands can make the process as smooth and stress-free as possible. Still, other factors are also important, such as planning the right timing to start the process and negotiating the date of both closings, all while having an escape plan in case things don’t go as planned, but in case they do, some short term solutions can still save the day.

In the real estate world, exclusive listings are not a common topic. On the other hand, the focus is on the MLS (Multiple Listing Service). In this article, you’ll have a general idea about exclusive listings, what does it mean? What are its advantages and disadvantages, and why do many buyers prefer exclusive listings?

Even though listing a house on the MLS is the most common way to sell a home, one has to be aware of all the available options. Exclusive listings have many drawbacks that you need to understand before you list your house.

However, a good realtor is what makes the difference in the deal.

What’s an exclusive listing?

In real estate, exclusive listings refer to listings held privately with a realtor and are not posted on the Multiple Listing Service. Therefore, the real estate agent has to market and advertise the listing in his network of home buyers, builders, and investors to sell the house. That is to say; the exclusive listing won’t appear online on any public or private site. It results in an exclusive deal.

MLS: the opposite of an exclusive listing

Listing a house on The MLS is the most common way to sell a home. Most sellers do it. The MLS is a service available to all the realtors that are part of a board, and it shows on public sites such as Zolo.ca and Realtor.ca. Today, most people start looking for homes online, which is why the MLS is the most popular way to make sure that the largest possible number of buyers and real estate agents view your house. MLS listings usually mean that they are two realtors. One is representing the seller and the other representing the buyer.

Pros of exclusive listings

Many people prefer listing a home exclusively, and there are several reasons behind that. In the right market and circumstances, the positives of executive listings can outweigh the negatives.

1. Privacy: Many people don’t want their relatives and friends to know that they are selling their house and why they are doing it. In situations like divorce, relocating, or death, sellers, prefer keeping it under the radar. Also, when it comes to celebrities selling their mansions, they usually like to do it exclusively. They don’t want people to know where they live and how much they are selling their house. Privacy, therefore, is the number one advantage to exclusive listings that MLS lacks. Not the whole world can see your house.

2. Pre-marketing: Listing a house privately before you list it on the MLS is excellent pre-marketing. It works the same way “coming soon” works. It is possible that your agent finds a buyer before your listing becomes public. However, if he doesn’t, it’s still beneficial for you to hype it and let potential buyers know that the house will be available soon.

3. Testing the market: Exclusive listings can be great to test out the market and list your house at a higher price than you anticipate. When property prices get reduced, realtors can see that information. They also can know the price it was bought for in the past, and the previous price it was listed for. If exclusive listings don’t get you a good deal, you can start marketing your house on the MLS, where the public can see it without knowing that it’s been listed exclusively for a long period.

4. Restricted access to the house in the middle of renovations: If your house is not ready yet to be on the MLS, exclusive listings can work as a great pre-marketing. Whether you’re in the process of painting or installing new appliances in the kitchen, restricted access can buy you some time. When a house is on the MLS, it’s open to the public, and it needs to be ready to be accessed by potential buyers according to a schedule. Your house can still be open for sale with an exclusive listing even if it’s not visited daily.

Cons of Exclusive Listings

1. Your house won’t be seen by a large number of buyers. It is not possible for a listing agent to have connections with every realtor in town. If the listing is not posted for the public, buyers who are not working with an agent won’t be able to see your house. Selling a house for the highest possible price happens through public exposure and access to the highest number of buyers.

2. You can’t know the true market value of your house. Listing your house on the MLS is the only way to get the buyer who is willing to pay the most for your home. By listing a property exclusively, it’s difficult to create a bidding war. Also, Knowing the actual market value of property happens by exposing it to the largest number of buyers. On the MLS, home buyers will be able to compare your house to others listed at the same time.

3. Who comes out on top? In exclusive listings, there will probably be a double ending where the same agent represents both the seller and the buyer and takes a full commission. In such cases, the agent will probably bring his own buyers and has a high chance of double ending and being the biggest winner. However, if the agent is double ending, will he be working more for the buyer or the seller? Does the seller actually get the highest price possible? Does the buyer get the fairest deal? Does the agent disclose everything about the neighborhood or try to close the deal as soon as possible? Is it even possible to consider both parties’ best interests? Working for both the seller and the buyer can’t be chaotic.

Before deciding to list your house exclusively or on the MLS, you need to ask yourself a few questions.

• Will you be okay with a small number of buyers?
• Is selling at the highest price your number one priority?
• Who is your realtor? Does he have access to a large network of realtors?

If you are considering buying a condo, you need to prepare yourself. It comes with different issues that you need to keep in mind, especially if it’s your first time. It is definitely different than buying a house.

Living in a condo means adjoined walls, HOA rules and regulations, and shared amenities. Overall, the whole process of buying condos and getting a mortgage is different than buying a house.

Main Takeaways

• Before you start viewing condos, it’s essential to know and fully understand the critical differences between living in a single-family home and a condo. It is the only way to decide whether the condo life is for you.
• Many people choose condos over houses for the low costs. They are typically cheaper than houses and require less maintenance. They are an excellent option for people looking for affordable alternatives.
• Getting a loan for a condo is hard since many lenders have rigid requirements.
• Residents have to follow the HOA’s CC&Rs. It stands for covenants, conditions, and restrictions of the condominium complex. Otherwise, they can be fined or worse, sued.
• Residents also have to pay a high monthly fee for any reparation and the maintenance of the common grounds, lobbies, pools, and everything else.

Should You Own a Condo?

Before sealing the deal, you need to ask yourself whether you are a condo person. Living in a condo means you have to be a city type of person. Most complexes are located in urban and densely populated areas or downtowns. Some development even comes with bank branches, stores, and a few other businesses. However, that might cause more noise and crowdedness.

If you have a certain area in mind for your condo, you have to check the neighborhood several times at different times, both at day and night, to see how bright and noisy it is. It will help you make a decision and eliminate that particular area from your list if the noise is an issue for you.

Another matter you should consider when buying a condo is the Homeowners Association (HOA). They come with strict rules, conditions, and restrictions that you must abide by in order to live in the area. If you are not one to follow the rules, you might need to reconsider buying a condo, especially since non-compliance could get you fined or sued.

Condos are an excellent option for first time home buyers who are on a budget and can’t afford a single-family home. Additionally, they require low maintenance. It’s great for busy people who can’t take care of any physical management of the property. Since most condos are located near or within big cities, they are great for city folks.

How to Buy a Condo

Financing

Buying a condo is quite different and more complicated than buying a house. Lenders have strict rules when financing this type of property. First, a certain percentage of the total of the units needs to be owner-occupied. Second, the number of condos that can be owned by one person is restricted. Usually, lenders can’t finance a purchase if the same investor owns more than 10 % of the total units. Some lenders even have restrictions regarding the occupancy rate. They require most units to be occupied before they agree to give a loan.

Condos’ loan-to-value ratios are also stricter and more restricted than houses’.  Federal Housing Administration (FHA)-backed mortgages for condos are a thing too. However, the condos’ restrictions are numerous. For example, the building needs to have more than four units to be financed.

Additional Costs

Loans are not the only finances you should worry about. There are other costs of buying a condo. First, it’s the Homeowner’s coverage. Even though the HOA provides insurance, you might need additional coverage. Make sure to read all the documentation regarding the insurance carefully.

Also, keep in mind that there is a monthly fee you need to pay. It concerns the ongoing maintenance and repair of the shared areas in the complex. These fees concern pools, lobbies, elevators, recreation rooms, and any common grounds.

The HOA can reserve some funds for extensive repairs, such as painting or roof replacements. The monthly fees vary from one complex to another, depending on the amenities offered. 

Avoid Condos With Certain Problems

Purchasing a condo is tricky, and it’s essential to protect yourself and your rights by researching the Homeowners Association beforehand and attend their meeting. You also need to talk to several neighbors and figure out if they are satisfied with the way the complex is managed.

Review all the documentation to know what is covered by the HOA and what’s not. You should also consult with a few board members to find out more about the association and its work over the last few years.

You should also find about the HOA’s litigation history regarding taxes and other issues both for taxes and other general matters. There might be some pending lawsuits that you don’t want to be part of. Sometimes, condo associations file for bankruptcy due to unpaid HOA dues. When lenders stop receiving their dues, they’ll stop financing the units. Additionally, you should review all the financial records. Homeowners’ Association should have a minimum of 25% of the gross income as a reserved fund for future repairs and emergencies. You should also check tax assessments and have them in line. If the condo’s price is low, but the tax assessment is high, you may be hit with a higher tax than what you expected.

Conclusion

Overall, condominiums are a great investment for a certain type of people. However, in tough markets, it’s harder to buy and sell a condo than a single-family home. It’s crucial to review the HOA, its history, and its CC&Rs and to have your taxes in line to avoid any future unfortunate situations.

Before hiring a real estate agent to help you purchase a condo, make sure they have a lot of experience with condos and the issues surrounding them. Buying a condo is not as simple and as easy as buying a detached home.