Fort Lauderdale Realtors often get the call from prospective Fort Lauderdale Real Estate buyers seeking a property that they can use occasionallyand rent out to defer the cost. The Fort Lauderdale Real Estate market is a perfect market to own rental property because being it is the"city by the sea" you have demand for annual rentals, seasonal rentals, both furnished and unfurnished. The expectationis that a Fort Lauderdale Realtor rents out the property a few weekends a year you can just about pay for itself.
Unfortunatelythis is far from that simple. The first issue to be aware of is that most Fort Lauderdale condominium buildings have very strict limitations on the number of times per year, and the minimum length of stay for all tenants. The most common of these rules is no rentals shorter than 3 months, no more than twice per year, and often no rentals are allowed the first year of ownership. Fort Laudedale Real Estate buyers who decide to violate these rules quickly become enemies of the state, or in the case the condominium, and will face fines and possibly legal action. Most Fort Lauderdale Realtors will not violate these individual condominium rules.
The reason for these rules are numerous. One of the more important reasons is the mortgage guideline that states if the number of investor owned units in the building becomes too high financing for individual mortgages will be unavailable. Certainly you want to buy in a builidng that approaches this issue responsibly. A second reason for these rules limiting rentals is wear and tear on the property. Every Fort Lauderdale Realtor can tell you a story of vacation renters who were here to have a great time and sometime that great time resulted in disturbing others or the damaging of property. Fort Lauderdale Condominium buildings are not hotels and are not set up to deal with these situations.
Another Broward County issue to be aware of is there is a toursit tax on all rentals less that 6 months and one day. This tax must be paid on all short term rentals. Your Fort Lauderdale Realtor can always provide you with details on this tax.
If you are planning to purchase a Fort Lauderdale condominium and defer the cost by renting it, plan on following the building guidelines and being a good condominium owner.
Two alternatives to think about if you are determined to generate cash flow with your Fort Lauderdale Real Estate investment. First, are condominium hotels which have dropped in value dramatically and now can provide you with a cash flow, and a realistic purchase price, most however must be cash purchases as the financing is limited. Your Fort Lauderdale Realtor will always be will to discuss the Fort Lauderdale Condo Hotel inventory with you.
The second is a single family home vacation rental. In this case you will have to be very careful that you purchase a home in an area where the city allows these rentals to exists. It is becoming more and more limited and your Realtor can certainly help.
Looking to invest in Fort Lauderdale Real Estate, have a client who is thinking about a home in Fort Lauderdale, Eric Miller and Associates are always here to help with all your needs in Fort Lauderdale Real Estate.