The property management industry in the Central Florida area has been booming in the last 10 years and even more so in or around the Disney attractions. The reason for this is due to the amount of overseas investors buying property in short term rental zoned areas and utilizing them for renting them to many British families on their vacations.
The main role of the property manger is to produce the highest and best income for the property while maintaining the value of the property in the interest if the owners. Management fees can vary considerably from the services provided and can include any or all of the following.
- Rental bookings
- Tourist tax payments
- Power of Attorney
- Utility bill paying
- Lawn care
- Pool Care
- Cleaning
- Building maintenance
Many UK citizens have used the property management business as an access route or visa to enter the USA and in particular Florida. There are many good management companies out there but there are also some that have very little business ethics or management skills. Unfortunately the industry has suffered from some bad publicity together with a major company in Davenport filing bankruptcy in 2006 leaving many of the owners with mounting debts and renters who could not be placed.
Short term rental
The majority of the properties registered with a property manager are used in the short term rental industry, it should be noted that all properties cannot be rented short term as local zoning may prohibit it. The tenant turn over in these properties could be vast with a potential new family renting every two weeks which can also increase the maintenance and utility bills. Most property managers cover this by a security deposit for damage repairs and additional rental charges for pool heating, baby equipment and gas BBQ rentals. The advantage of short term rentals is that the tenants will probably be out most of the day at the amusement parks or shopping malls so the utility bills stay relatively low. Things we often take for granted can add hidden costs to your rental home such as the constant replacement of toilet rolls, soaps, cleaning products and even light bulbs. The property manager will generally work some of this into their monthly fees but it is a good idea to work out up front all these costs. With most short term rentals the home owner is responsible for paying the utilities, insurance and property taxes.
Long term rental
The term “Long term” refers to a rental or letting of the property over 6 months, if fact in many sub divisions it is written into the deed restrictions the minimum time period allowed. With any long term rental it important a rental agreement is drawn up and security deposit is logged with the property manager together with background checks and credit references on all the proposed occupants. It is essential that a “no sub lease” clause is written into the agreement. With most long term rentals the tenant is responsible for utilities, lawn and pool care.
If you are employing a new property manager for either short or long term bookings it is advisable to have the property inspected independently by a home inspector before you sign up. This allows you to have an unbiased report on what maybe damaged and or not working correctly. When the property has been inspected it is advisable that a home warranty is taken out with a reputable company to cover all the major items for repair or replacement. A standard home warranty can be as little as $399 per year and makes sense as if the A/C needed replacing it could cost anything above $4,000 with labor included. Two of the most popular home warranty companies used in Central Florida are Old Republic Home Protection and American Home Shield
It also pays to supplement the rental bookings from your own marketing such as a home web site as these booking may not be subject to a commission charged by the property manager. With the age of the internet most homes now have the facility with either a PC provided or a wireless connection provided for the guests. The added advantage to this is also security. Many home owners now have an alarm and web cam security viewing the living room so they can see if there is someone in their home when they should not be. It has been known for some unscrupulous property managers to put a tenant in a home without letting the owner know thus keeping all the rental income.
Professional recognition is denoted by local membership of The Central Florida Vacation Rental Managers Association (CFVRMA) which was set up to bring conformity and a professional code of ethics to the industry. The CFVRMA has been established and serving in Central Florida for 10 years, membership is voluntary.
In order to find a quality property management company it is imperative you work on a referral basis from an existing client or local Realtor who can give you insight on their personal dealing. Always as the property manager for references or names of existing clients that you can contact directly. In my experience the size of the company has no reflection on the level of service provided. I have also found that smaller companies of up to 20 management homes give the most reassuring service to their clients.
Testimonials
“We were introduced to John McLoughlin by a UK based Estate agent as John was considered as an expert in the area that we were looking for a property. He assisted us finding our dream home and was able to negotiate a very good price for our long term investment. Throughout the process we found his services to be very professional and we will be using him again for our next purchase.”
Bill & Lan Edwards (UK) Purchase in Windermere Florida
“We were referred to John McLoughlin by another UK South Florida based Realtor as we wished to purchase in the Kissimmee area. Johns experience in construction & real estate quickly assisted us identify properties that were not suitable for our needs and he found us a property that matched our criteria perfectly, we would not hesitate to recommend John”
Chris & Debbie D (UK) Purchase in Kissimmee Florida
Qualifications snapshot
- Member of The National Association of Estate Agents (UK)
- Member of The Orlando Regional Realtor Association (USA)
- Member of The British American Chamber of Commerce (USA)
- Fellow of The Chartered Institute of Building (UK)
- Fellow of The Association of Building Engineers (UK)
- Certified ASHI Home Inspector (USA)
- Certified Mold Inspector (USA)
- BSc hon`s Degree Building Surveying (UK)
- NEBOSH Heath & Safety Advisor (UK)
I now assist many British, European and American clients find their long term financial investment property in Central Florida. I have acquired a worldwide network of referring partners from Estate Agents in the UK to financial advisors in the Middle East.
Please feel free to check any of my qualifications and references with the following worldwide professional organizations and regulating bodies.
To contact me and arrange your fee consultation click the contact button below
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