GENERAL INFORMATION FOR PROPERTY OWNERS
CONCERNING THE RENTAL OF THEIR SPANISH WELLS PROPERTIES
With the ever increasing investor owners in Spanish Wells, competition for the rental market is strong. Once you decide to place your property on the rental market, there are several decisions you must make. Will you rent your property annually, seasonally, or for even shorter periods of time, and what restrictions may be applicable to your particular situation? Depending on whether you own a single family residence or a condominium, your ability to rent your property may fall under some stringent guidelines. Proper lease documents should always be utilized. If you have not employed the services of a professional management company, you will want to speak with an attorney to make sure the lease you are using complies with the law and offers you protection, should the tenants not comply with the terms thereof.
Typically, single family residences within our community, if rented, are on an annual lease basis, and usually are rented unfurnished. Should you choose to rent on a seasonal basis, or perhaps even a shorter time period, your property will need to be turnkey furnished, and you will want to come to some sort of agreement as to who is responsible for things like utility bills, including phone service. Also, in the event that maintenance is required on the unit, how is that to be addressed? For instance, if the air conditioning should fail, will you assume the responsibility for housing the tenant in a motel or other suitable place until the system failure can be repaired?
You may find that the cost of hiring a firm to manage your property can more than pay for itself. First of all, they often have large databases of people who are looking to find a place for the ensuing season, And the mere fact that they typically have repair people readily available to address any problems with your unit, and can get repairs made promptly may help you to avoid the possibility of lost rent monies.
It is important to note that in Florida real estate rentals of less than six months and one day are subject to sales and tourist taxes. In our community, this typically amounts to 9% of the rental monies collected, and should be charged to your tenants, under the terms of their lease. However, as a property owner, the responsibility for payment of same to the state falls upon you, and your failure to collect does not relieve you of the obligation to pay. There are also forms which you are obligated to file with the state with respect to short term rentals on your property.
And don't forget, the IRS is going to be looking for their share of your rental income as well, and proper reporting is critical. Should you list your property with a management firm, such filing obligations are typically assumed by them.
Just as pet restrictions may apply to ownership, rentals are subject to pet restrictions as well. While under an association's rules and regulations, an owner may be permitted to keep one or two small pets, this is often subject to approval on an individualized basis, and approval may not be easily obtained for pets belonging to tenants.
Also, certain occupancy regulations may apply. Condo associations, in particular, are typically very strict about how many individuals may occupy a particular unit, and may have additional regulations pertaining to children who may be occupying a residence with their families.
Within Spanish Wells, each homeowners and/or condo association has extensive rules and regulations, which as an owner you need to be familiar with. Anytime a tenant is occupying your property, you will want to provide them with a list of the rules and regulations applicable to your unit. It would be well to have them sign, acknowledging their receipt of the rules and regulations. Doing so may help to exonerate you in the event they fail to comply with the rules and regulations applicable to your association, and are asked to vacate the premises prior to the end of their lease term.
Oftentimes, any rental of your property must be first approved by the association having jurisdiction over you property. An application, often accompanied by a fee, must be filed with the community association, and approval must be obtained sometimes as much as 30 days prior to occupancy. Associations sometimes check references, and in some cases even do background checks on these applicants before issuing approvals, so it is absolutely essential that you comply with their timing requirements. Failure on your part to get the required advance approval may even mean that the association could keep your tenants from being permitted to access the property. Some associations within Spanish Wells even require that a deposit, in amounts equaling one month's rent, be placed with them. This is in addition to any deposits required by you or your rental management firm.
Other restrictions which may apply to your unit involve the minimum rental period and/or the number of rentals permitted per year. With very few exceptions, condo owners in Spanish Wells are permitted to rent their property no more than three times within any year, and minimum rental periods are 30 days. Spanish Wells Golf Condos currently have no limit on the number of rentals per year, but do require that the minimal rental period be at least 30 days, meaning that these units could be rented as many as twelve times in any given year.
Should you be considering the rental of your unit, we advise you to check with the management of your homeowner's and/or condo association and make sure you have the most recent rules and regulations pertaining to your community. We have included some basic information, as well as management company information under the communities section of our website for the various condo complexes in Spanish Wells. Here are some quick links to the various condo associations within Spanish Wells:
Anytime you decide to rent your property, you should expect that a tenant will want the unit to be clean and well furnished with all the comforts of home. How much you get for your unit will often depend more upon its condition and the adequacy of its furnishings than its location or size. Before even considering a rental, you need to make sure there are plenty of linens, complete and matching sets of dishes, glasses, tableware, and pots and pans. Comfortable furnishings and good beds are critical as well. Cable TV and high speed internet access are things that many would be tenants are seeking in today's rental market, so you may want to consider making these available as well.
Most owners line up professional cleaning people to come in after each rental to put everything back in tip top condition, and verify that all essential items are present and in working condition, prior to the arrival of another tenant. Property management firms usually have these services available, so this may be another reason why you'd want to hire a professional management service to oversee your Spanish Wells rental property in your absence.
Spanish Wells Golf and Country Club members may arrange to transfer their memberships to their tenants for temporary use, during the time they are occupying your property. An application process must be completed, and the required fees paid before such a transfer will take effect. You should check with the club for details as to how this is handled. If you will be renting to multiple individuals during the year, an application and transfer fee will be required each time someone different wishes to utilize your membership.
While I do not become involved with the rental of properties in Spanish Wells or elsewhere, I am here for you anytime, should you have questions or concerns, or need recommendations for obtaining professional services which you may require pursuant to the rental of your property. Please don't hesitate to contact me anytime I might be of assistance. As your friend and neighbor "Inside Spanish Wells," I am here for you!
This Website has been designed and maintained by Spanish Wells resident
Marti Timple ~ John R. Wood Inc., REALTORS ~ (239) 405-1608
Email me at: TheTimples@InsideSpanishWells.com