Anna Maria Island Rental Restriction - UPDATE

As part of the comp plan a one month rental restriction was passed about one year ago for properties in R1 area in the city of Holmes Beach.  Many of Island Real Estate property owners ask me how could this happen?  Apparently it was discussed in one meeting with little to no communication to the public.  I think it is important to mention the public is invited to all meetings so it's tough for locals as me to play the "victim" role.  More on victimization later.

As the G.M. I often predict potential rental income for seasonal rentals on Anna Maria Island.  I feel extremely comfortable predicting that the one month restriction will reduce gross rental income for properties affected by more than 40%.  A typical 4 bedroom home with a pool on a canal should generate at least $70,000 annually.  Gross income generated with a one month rental restriction....Maximum $42,000.  That's a large hit for

Holmes Beach owners that are using income to defer debt service, insurance, and property taxes. What impact does the one month rental restriction have on property values in the R1 areas?  The first question that needs to be asked is what do future buyers want?  Rental income or fewer new "neighbors" throughout the year?  I estimate at least 70% of potential buyers request specific information regarding rental income.  Many do not rent their home after purchasing but they take great care in understanding "what if" scenarios.  This is just good business sense.  So what's the rental restriction going to cost Holmes Beach owners in the R1 area?  I would estimate between 15-25% of their value.

But wait....Thanks to David Zaccagnino and a few of us that attended the latest Holmes Beach meeting on Tuesday, August 12th.  David the "lone commissioner" convinced the mayor and remaining commissioners to revisit the comprehensive plan and open the rental restriction discussion to the public.  Thank you Holmes Beach City!  Sandy Haas-Martens informed the council that the vote needed to await the return of several vocal residents in the R1 zones.  So, it appears we will have our opportunity to discuss the rental restriction around November of 2008.    

If you are a private home owner of the affected area don't be a victim.  Let your Anna Maria Island Real Estate professional know whether you support the one month rental restriction.  If you want to be sure your voice is heard... contact me directly as I will continue to play an active role in the Holmes Beach rental restriction.