Using a Home in the Keys as a rental
Renting your home out as a seasonal(vacation
rental)or long term.
Long term renters are 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 we do a credit check before submitting a lease to you, then
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.
• As to utilities- The tenants 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 we 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! I deal a lot 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.
• 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,
please contact me. 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 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.
• 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 .
SPECIFICS OF THE AGREEMENT
1 We agree to manage the home for a period of one year with the contract
automatically renewing unless either side gives 90 day notice.
2 Our fee for vacation rentals is 20%---what is really important
here are the following points.
• 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 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.
• 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 we
run on our rental properties.
• We actively and aggressively manage your home. Meaning we get the best
customers (qualified) We play by the 2 people per bedroom limit, and we work
to keep it filled other than your personal usage
•
• We have Handymen, Electrical, Plumbing, Landscaping, Pest control and
appliance people that respond when there is an emergency. BOOKING THE HOME FOR
THE OWNER.
This is very simple. You would call the rental manager and have him
block 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 $500How are emergency repairs handled?
• We have handymen available that can take care of small emergencies 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?
• In the event of an impending Hurricane, the handyman or someone else
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
• 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 water side, below a set of loungers and chairs.We get a lot 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.The Rental
laws-what is going on in the Keys
• The Monroe County commissioners voted 4 to 1 about 4 months ago to overturn
and rewrite the existing ban and allow weekly rentals. Recently a meeting was
held where a proposed revision was discussed. It was deemed not acceptable and
is being looked at again and will redone possibly by Mid April. There is also
a chance it may come back allowing 14 day rentals which would meet everyone halfway.
• In the meantime the Keys are Incorporating and getting away from County
Rule. This happened recently in Marathon and is on the ballot for November for
most of the lower Keys Islands. What this means is that the Incorporated areas
make their own rules as to rentals.Where do we get the renters
• If you're reading this on my web site you have the answer.
• The balance come through National Advertising placed in magazines such
as Island Living, Florida Sportsmen, Salt Water fishing and Dive magazines
as well as regional publications and our own buyers guide.
• Also all of our computers are networked meaning if someone is looking
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?
• All of our offices have a dedicated rental manager whose job is to
rent the homes. In conclusion, there is a lot to discuss on rentals and
this is used to just get you some information regarding the main issues
