Stoneybrook rental property (Venice: sale, real estate market, rental homes)

[Loriann2fla]

I am thinking about purchasing a property in Stoneybrook on center and river rd to use as a rental. How would I go about finding out the rental rules? Does anyone have any tips for buying a rental property?

[motordavid]

Net is full of info...from a less than half minute perusal:

-See Rental info near end of page 15 https://stoneybrook.nabrnetwork.com/...GUIDELINES.pdf

-Stoneybrook at Venice main page, full of info

https://www.stoneybrookatvenicecdd.org/

Need more info, give the CDD, Mgmt Co., et al a call

[Sunshine Rules]

I've noticed of late that some communities have either tightened up their rental policies or are discussing the possibility of doing so. My suggestion would be to talk to either the management company or HOA board president to check the status of rental regulations in Stoneybrook or whatever community you are considering purchasing a property in to see if the current rules may be changed in the near future.


As to rentals in general, I often get questions from people who are thinking of buying a Florida home or condo to use as a rental property for investment purposes. The obvious positives to investing in real estate is that it is a tangible asset that you control. You can make money with real estate 2 basic ways - through appreciation of your asset and positive cash flow (rental income that is above your expenses).

There are a number of important factors to take into consideration when buying a property to use as a rental/investment.

My first suggestion is to learn the local real estate market within the price range you are targeting. Knowing the local market, the neighborhoods, the school districts and the inventory will give you a much better perspective as to what constitutes a "bargain" purchase price. Don't confuse cheap properties with good buying opportunities, cheap properties are generally cheap for a reason. Obviously the quality of the neighborhood is important in attracting and keeping good tenants. Tenants generally are looking for many of the same aspects for their rental homes that home buyers seek out. Location is also important when you consider that at some point in time down the road you may want to sell the property.

Part of learning the local market is to learn the rental rates within your targeted price range/neighborhoods so that you have a good perspective as to market rental rates and demand for rental units within your targeted price/area. As a buyer you will be looking for a monthly rental rate that will cover not only your expenses (including mortgage, if applicable) but also give you a cushion for repairs and vacancies. Some experts say that cushion should be about 20%.

It helps to put together a spreadsheet for comparing properties, one in which you can factor in things such as potential annual income (minus vacancy rate), expenses such as insurance, HOA/condo fees, property taxes, maintenance/repairs, mortgage (if applicable), appreciation/depreciation, etc so that you can calculate your net operating income and return on your investment. There are sample spreadsheets (sometimes called a property investment calculator) out on the Internet that you can use as guidelines in setting up your own. Doing a spreadsheet on each property you are considering will help you determine if that property will give you enough of a spread between income and expenses to meet your goals. Many investors in rental real estate target a return on investment of 5% - 7%, but I have come across investors that target a higher yield such as 10%.

Here's a tip about property taxes. If you are purchasing a property that had previously been owner occupied and the owners had the homestead exemption on the property, expect the property taxes to go up (sometimes substantially) on the following year's tax bill. A sale always triggers a new assessment of the property as of the beginning of the new year.

Learn the FL landlord/tenant statutes. Chapter 83 of the FL Statutes covers landlord/tenant statutes, everything from what you can and cannot include in a rental agreement, your obligations as landlord, the tenants obligations to you, what you can and cannot do with the tenant's deposit money, termination of the tenancy, notices that must be given and timelines requires, etc. There is a LOT you need to know before you become a landlord in order to avoid legal entanglements, and the FL statutes are an excellent place to start. (Even if you decide to hire a management company, it still pays to know the statutes.)
Statutes & Constitution :View Statutes : Online Sunshine

Decide if you plan to self manage your rental properties or hire a professional property manager. Finding a property manager that will handle all aspects well (finding & screening tenants, maintenance/repairs, accounting, tenant issues, etc) is difficult. Sometimes it is a matter of deciding where you are willing to compromise. If you plan to hire a property manager, now is not too soon to start your search process. If you intend to self manage your properties it is better to live locally. It is difficult to keep appropriate track of tenants and rental properties if you spend 6 months of the year (or the entire year) several states away. Be sure to factor in the cost of a property manager in your spreadsheet under expenses.

Find a good tax advisor/accountant and attorney to work with. Before you write an offer, know how you wish to take title. Many investors set up an LLC (limited liability corporation) to take and hold title for investment properties rather than putting them in their personal names. There are advantages and disadvantages to both, which your tax advisor and attorney can go over with you.

Being a landlord is a business and you should treat it as such. As a landlord you will from time to time have to deal with difficult tenants, tenants that do damage to your property and those who fail to pay the rent to the point. You should therefore also learn the local eviction laws and be prepared to use them if necessary.

On the same topic of tenants, keep your tenants happy. Vacancies eat heavily into annual profits on a property, so treat your tenants with respect and do stay on top of maintenance and repairs.

On the topic of finances, keep in mind you will need a cash reserve up front. Failing to have a cash reserve may force you to accept a less qualified tenant to avoid a vacancy, do substandard repairs to get by, or beg friends or family for a temporary cash loan to get by.

The most important suggestion I can make to people thinking of investing in rental property is to do the homework. Learn as much as possible, talk to successful investors/landlords, read books on the topic (there are actually a couple of decent ones out there), perhaps join a local investment group. You will be less likely to fail at real estate investing if you go into it with realistic expectations.

[macrodome2]

We just amended the rental rules in Stoneybrook at Venice this month so that you have to own the property for one year before being able to rent it. We were starting to have too many investment only purchases and this will limit the number of people who only want to rent the property and not live in it or use it themselves.

[beach43ofus]

Originally Posted by macrodome2

We just amended the rental rules in Stoneybrook at Venice this month so that you have to own the property for one year before being able to rent it. We were starting to have too many investment only purchases and this will limit the number of people who only want to rent the property and not live in it or use it themselves.

Smart move, I hope your actual residents appreciate you all on the HOA Board. I've done it, so I know its a thankless job, so I'll thank you on their behalf!

[macrodome2]

Originally Posted by beach43ofus

Smart move, I hope your actual residents appreciate you all on the HOA Board. I've done it, so I know its a thankless job, so I'll thank you on their behalf!