I would like to buy a rental property like house,
or condo. I then want a property manager to rent it and take care of making the following payments, mortgage, insurance, taxes, utilities, maintenance, etc. I need to know how
to buy, rent, make payments, and know my percent
of profits.
Thank you for your inquiry. There are three general types of
residential rental properties in the Florida Keys.
1.) Transient rentals that can be rented nightly
2.) Non-transient short term rentals that can be rented weekly, and
3.) Long term rentals that can be rented for one month or longer.
The acquisition costs, income and expenses vary with the property type but I will try and answer your question in general terms until you choose the type of rental property you want to purchase.
To rent daily or weekly you will need to have licenses from the State of Florida and the local government authority, and the property will need to be inspected annually to insure that it meets all the requirements of the appropriate codes.
Long term rentals are exempt from these requirements and will rent for less than the other type of rentals, but these units will typically be rented continuously and have the lowest management fees.
If you purchase a property that has been a rental you will know what its rental history and income potential has been. It typically takes a couple of years for a transient or non-transient short term rental property to reach its potential, and the best properties have a 75 percent occupancy with management fees running between 20 percent and 50 percent of gross income depending
on the project.
Most rental properties will not carry themselves if there is a mortgage on the property and their owners profits come through appreciation of the real estate, and not from the rental cash flow. I hope this helps you to understand the general principals of rentals in the Keys.
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