When looking for an investment property, Florida is certainly a good option . . .
. . . . because the Central Florida property market, which has had a well-developed Buying to Let segment for many years, provides two separate choices:
1. Long Term rental accommodation is usually sought by residents who are unable or unwilling to purchase their own home. With the recession a few years ago and consequent foreclosures, more residents than ever are in need on rental property. Contracts are generally for a minimum of seven months. A standard form of contract is readily available for contracts of up to 12 months, but contracts for periods in excess of a year should be prepared by an attorney due to the legal risks. Potential owners of investment property in Florida should be aware that:
- Most long-term renters require unfurnished property, but landlords are often asked to provide appliances (e.g. washing machine, refrigerator).
- Many renters do not require, or actively avoid, homes with pools.
- Utilities are paid by the renter. Other expenses are negotiable, but the landlord normally pays the property taxes and insurance.
2. Short Term rentals have become very popular in the last decade with visitors to the Central Florida theme parks. Rentals are mostly between one to three weeks in length and limited to periods of 6 months or less, allowing use by the owner in the remaining days or weeks. Key features are:
- Owners are completely responsible for furnishing/maintaining the property.
- A private or communal pool is essential.
- State and County licenses are required.
- Sales Tax is chargeable on rents and payable to the taxing authorities.
Buy to Let investors should consider their preferences at the outset, because Florida Counties have limited the areas and developments that short term rentals are allowed in. Restrictions on long term rentals are very few. So we often advise clients who want investment property in Florida to choose a short-term rental development if in doubt, giving them both options.
For more information or advice, contact us via the Florida property inquiry form.