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Charles Rutenberg Realty Associates. 727-399-1347
Condos directly on the Beach Generally generate the most rental income.
However, there are a number of waterfront units near the beach that also do verywell
As you know Real Estate Investments require considerable and comprehensive research. We are experienced in all facets of Rental Income Condos with a combined 40+ years experience in
Florida Real Estate. When you agree to our buyer representation we will include information to
assist you in making the right decisions.
Information on any listing needs verification.
If furnished is not mentioned...we will call to inquire if an added expense ...or was it overlooked. Info on rental histories, if they claimed Homeowners exemption they most likely used
it as a permanent residence (6 months or more) then we will try to get info on rentals from similar in the area. Boat slips - we will need to confirm slip sizes and if included in the price. Some listings
include a sellers disclosure some don't - we will investigate. HOA rules regulations and what the fees cover will be assessed. Short term the rentals 1-7 and under 14 days receive the highest rental income.
Pinellas County Property Appraiser “taxable value”. Any renter who resides for a period of six (6) months or less in a facility located in Pinellas County must pay 6% Tourist Development Tax for Pinellas County plus 7% Sales Tax to the
owner of the rental property.
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EXAMPLE OF RESEARCH DONE FOR BUYERS
NOT UP TO DATE... CONTACT US FOR CURRENT INFO
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USE FOR RENTAL INCOME COMPARISON - SOLD FOR $715,000
Initial Asking Price $735,000 - Fully Furnished with 30x15 Boat Slip
145 Brightwater Drive #8 , Clearwater Beach
Weekly Rentals Okay - Sleeps 6 - $75k Rental History
Feb to April High season up to $2600 weekly rentals
MANY OWNERS PUT THEIR UNITS ON A RENTAL SITE TO SAVE ON PROPERTY MANAGEMENT FEES.
The return on investment
is not just based on revenue. The tax advantages, appreciation, offsetting
of vacation costs and personal preference all enter into an "investment".
Consult with your tax professional for tax deductions,
such as when visiting your investment for airfare/rentals etc
IRS
publication 527 about tax benefits of a vacation rental
Beach Front and Waterfront Condos, Townhomes - Clearwater Beach, Redington Beach, Treasure Island, Madeira Beach and St Pete Beach get the most
vacationers
Condo Interior Warranties for Appliances Etc.
Globe Home Warranty
Review Plans
American Home Shield Review Plans
Condo insurance
- The HOA usually has a master insurance policy which covers
the common areas and buildings from the outside. Part of the monthly
association fees go to the upkeep and insurance for the common areas. Buyer should review it.
Condo Owners insurance policies cover the inside
structure of the unit and personal contents.
The value of a Boat Slip can range from $35,000 to $65,000
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EXAMPLE OF RESEARCH DONE FOR BUYERS
NOT UP TO DATE... CONTACT US FOR CURRENT INFO
All figures are approximate and being used as a general guide
GULF CONDO Premium Beach View Asking $499,000
$70,400 2016 Rental Revenue for 2016
List Price: $499,000
Assume Accepted All Cash Offer of $474,000
2016
Taxes: $5,081.00
HOA Fee Monthly: $567.00 Includes: Building Exterior, Cable, Community Pool, Escrow Reserves Fund, Flood Insurance, Ground Maintenance, Insurance Building, Pest Control, Roof, Security,
Trash Removal, Water/Sewer.
ESTIMATES -Appx numbers - Accepted price
$474,000
Gross Annual Rental Revenue $70,400
Property Management 13% assuming buyer ads bring in renters) rental fee $9152 (61,248)
Appx cleanout fee $80 X 30=$2400 (charged to renter and included in Gross)
$58,848
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Tax 13% on Gross $70,400 =$9152
$49,696
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Maintenance fee $567 x 12=$6804
$42,892
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Interior Content Liability Insurance for the unit - appx $1000
$41,892
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Warranties for Appliances Etc - appx $400
$41,492
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Electric appx $150 x12=$1800
$39,692
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Property Tax on $474,000 = appx $6,000
$33,692
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APPX NET -
$33,692
(with 13% management fee and your advertising)
(Appx 7% return without additional IRS deductions)
When doing net approximations you should account for appreciation of the
unit...depending on purchase price. Contact us for an analysis.
We have communicated with a local area property management company who said their typical mgt fee is 20% and they pay the credit card fee of appx 2% (making it 18%) - If
the client refers the renter a 5% discount - or 13% |