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MANAGING YOUR PROPERTY IN FLORIDA
This section is designed to assist "second home" or "rental" villa and apartment owners in the management of their properties.
Managing your property
After you chosen your dream home in the sun and arranged the finances to seal the deal, one the final meetings you are likely to have before you return home will probably be with prospective property management companies (PMC). Whether you are intending to keep the home for your own personal use only or whether to rent it out commercially, it WILL need to be managed.
Ever since we first started selling vacation homes in Florida, our buyers have asked us; “Would you be able to manage the property for us when we are not here?” In actual fact we came to Florida solely with the intention of managing property but almost fell into real estate by accident and ever since then, it has taken 100% of our time and management has always been on the ‘back-burner’, although we have become very involved in ‘management issues’ over the 7 years or so we have been here.
So, in the summer of 2009, we decided that we would give in to the requests and begin to officially manage properties for our clients, initially on a small scale. That way, we hope to provide the best possible service.
Of course, you are free to choose whoever you want to manage the property for you. We will happily supply you with a list of companies who we recommend and have worked with successfully with our buyers over the past seven years, or you are free to choose any company you wish, perhaps from a referral from another owner. It’s always a good idea to interview two or three before you make a final decision. Remember the management company you choose will be working for you. You should therefore conduct this meeting like a job interview – and you are the employer. Don’t be afraid to ask difficult questions. Ideally, you will need to select a property management company before you take possession.
You need to ensure that a reputable PMC is organised and ready to take over the property immediately after closing the sale
If you want to know more about the service we offer, then scroll down this page to; “TERMS and CONDITIONS”. Then feel free to contact us with your questions.
You need to ensure that a reputable PMC is organised and ready to take over the property immediately after closing the sale
Immediately after closing, they will need to;
· Collect the keys and probably re-key the locks for you
· Help you to arrange for the utilities to be switched to your name – deposits may be needed
· Clean and repair as necessary
A list follows showing some of the regular services provided by property management companies:
· Regularly mowing your lawn and looking after your garden
· Weekly swimming pool maintenance, including washing the deck and pool furniture
· Maid service, particularly after guests have vacated the house
· Laundry
· Property Maintenance
· Pest control
· Helping you to arrange bookings
· Looking after and handing out keys (to guests)
· Collecting fees and rent
· Emergency callouts – e.g., when a guest locks himself out!
These are just a few examples. There are many property management companies to choose from. Prices charged vary and it is always wise to shop around to find the deal that suits you best. Many offer a menu arrangement, where you can pick and choose only the services you need.
State Law requires that your home is fully licensed if it is to be used as a vacation home. Your management company will ensure that your license is in place and that the property is inspected and passed as a licensed public lodging establishment. The inspector will ensure that you have the necessary fire extinguishers, smoke detectors, pool alarms and emergency lighting required by law in what is effctively a small hotel. To set up the license and have the property inspected will probably cost around $250-$350. This is a one-off setting up charge.
In addition to this, your property management company will ask you for a float of perhaps $1,000-$2,000 which they will hold on your behalf in an “escrow” account. This will initially be used for paying bills, repairs and maintenance costs. They will then send you a monthly account detailing these.
In addition to the actual utility payments every month, you PMC will typically charge a fee of $250-$300 per month for the services listed above, with the exception of cleaning. Usually a clean is only arranged when a guest has left, typically twice a month. The cost is usually around $80.00 each time a cleaner is called in. The cleaner should also check to make sure there are no breakages and nothing is missing from your property.
You should also be expected to pay for a ‘spring clean’ twice a year, which should include steam cleaning carpets, power-washing the pool deck and driveway and touching up the paintwork, etc. This is very important in order to keep the house fresh and appealing to your guests.
Each guest will normally be charged a security bond before they arrive and this will only be returned once the PMC knows the property has been left in a fit and proper state. This can be collected either by the owner or the management company, in advance of the booking.
Will the management company fill my house with bookings?
If you are renting the property out as a vacation home, the PMC should be able to help you find some guests to fill your diary. If the property was a rental home when you bought it, it may already come with bookings arranged by the previous owner. Alternatively, the bookings may have been made by the previous property management company.
In such a situation, you really need to talk to the existing management company as well as maybe 2 or 3 others, as keeping the previous company in place, at least for a limited period of time, should ensure these bookings remain with you.
Some management companies will help you with bookings, others simply manage the property for you.
We stress that management companies are there to manage. If you just assume they will handle the bookings as well and you don't need to bother, think again. Most investors realise that they are not going to get rich from bookings, but many think that the villa will run itself - NOT TRUE!
Like all the big hotels and all the thousands of small ones that are your direct competition, you have to work really hard just to break even. You cannot rely on management companies to run your business for you - without being unkind, they are just your book-keeping, cleaning and maintenance team.
Ultimately though, you are responsible for appointing a company that you believe will work with you and take away the worries of ownership from half-way around the world.
One final tip! If you don't have one already, invest in a fax machine. It will make running your property abroad much easier.
If you want us to mange your property for you, then read on......
TERMS and CONDITIONS
Introduction
The purpose of the next few paragraphs is to give you a brief overview of the services we can offer, our scale of fees and also to run you though the requirements for owning and running a vacation home in Florida.
Licensing and Inspection
Rental homes must be fully licensed to comply with state and county regulations. We will inspect your home and correct anything that is non-complying. It may be necessary (if you have just purchased your home) that a new Hotel and Motel license inspection be scheduled. The cost of this inspection is a one-time cost and is necessary before a Short Term Rental license can be applied for.
Once licensed, we will provide licenses to be hung in your home along with any other relevant signs that may be needed. You will also need to have a County Tourist Tax number and a State Sales Tax number in order to comply with the state and county regulations.
Payment of Bills
We recommend homeowners pay their utility bills directly. We can (if requested) provide the necessary telephone numbers and web sites for each utility or service provider.
The benefits of paying your own bills are;
1) You receive your bills directly so you know the correct amounts being asked for,
2) Greater flexibility in regard to payment times and method.
The only bills which you will be paying direct to us are;
1) The agreed inclusive monthly management fees, which can include the pool, lawn, administration, pest control, A/C monthly filter change, and weekly home inspection visits,
2) Any special maintenance fees, repairs, or home-improvement projects performed by us or by contractors appointed by us,
3) Commissions on reservations obtained by us on your behalf, and
4) Housekeeping / Cleaning fees incurred in conjunction with guest lodging.
Monthly Statements
At the end of each month, we will provide a detailed statement showing all incoming expenses that have been incurred for your vacation property. The statement will also itemise all lodging revenues collected by us on your behalf.
Weekly Home Inspections and Maintenance
Home Inspections are undertaken on a weekly basis and any minor problems will be reported are reported back to you. Remedial action will be taken either at the time of visit or soon after. It is important that the problems are fixed on time so that we can keep costs down. If a major problem occurs, we will contact you first. You can then decide how and when you want the work completed. If we have no option in fixing a problem, we will act in your best interest to have it put right. We will respond 24 hours a day to problems encountered by guests during their stay.
Air Conditioning System
Monthly filter changes and air-conditioner inspections are undertaken and adjustments are made if necessary.
Cleaning the Property
Whenever guests vacate your property, our cleaners move in and a full clean and inspection is done. Trash bags, soaps and toilet tissue are replenished each time. We can also provide carpet cleaning or power washing along with many other special services at your request and with your approval.
We do suggest your carpets are cleaned once a year and a pool/patio/balcony area is power washed. This will help to keep your home to a high standard just like when you bought it. Twice a year a “spring clean” is required and involves a top to bottom cleaning including all windows.
Lawn Service (if applicable)
If your contract includes lawn service, this service is provided once per week during the Spring, Summer, and Fall and as required in Winter and consists of having your lawn cut, trimmed and edged and hedges trimmed. If you have a sprinkler system, it will be monitored for best use. A full gardening service is available if required (tree/shrub planting, weeding and mulching).
Pool Service and Maintenance (if applicable)
For properties with a private swimming pool, and to comply with state laws, a fully licensed pool company will carefully monitor your pool and perform the following services:
· Weekly vacuum
· PH balance
· Chlorine balance
· Deck and furniture wash down
· Filter cleaning
PLEASE NOTE that we will sub-contract any pool work to a licensed pool company.
Pest Control
In Florida’s climate, continual pest control is a must. We will use a fully licensed company to you. They need to maintain the outside and inside of your home and treat once every three months .
HOW TO CONTACT US
You may contact us as follows;
From the U.S.
Phone: 1-321-939-0054 or 1-407-873-3706 / Fax: 1-321-939-0028
Email: villasinthesun@hotmail.com
From the U.K.
Phone: 001-321-939-0054 / Fax: 001-321-939-0028
Mailing Address: 531 Campus Street, CELEBRATION, Kissimmee, Florida 34747, USA
Website; www.floridavillasinthesun.com
Schedule of charges
These are just a sample of charges and they can vary depending on the size of the property and any specific needs identified.
ITEM COST
Basic Management Fee $ 125.00 per month
Pool Service $ 100.00 per month
Lawn Care & Treatment (if applicable) $ 75.00 per month
Pest Control (External and Internal) $ 30.00 Per month
Trash Service $ No Charge
Monthly A/C Filter Change $ No Charge
Pool Heating on/off $ No Charge
Web-site Advertising $ No Charge
Initial set up charge (see details below) $ 300.00
- Initial registration documentation
- Re-keying all doors as necessary
- Fitting lock-box to front door
- Pool signs (if applicable)
- Home instructions for guests
- License displays
Cleaning charges for stays of 7 days or longer
- 3 Bedroomed property $ 75.00
- 4 Bedroomed property $ 85.00
- 5 Bedroomed property $ 95.00
- 6 Bedroomed property $ 105.00
(For stays of less than 7 days, the cost will be passed on to the guest)
Extra charges
· Air conditioning service from; $125.00
· Pressure cleaning Pool Deck; $50.00
· Spring cleans from; $150.00
· General maintenance; $30.00 per hour + materials
Painting and decorating, gardening and the purchase of furniture, etc., will be individually priced.
All charges will be confirmed inan individually tailored contract with you. Contracts will normally run for 12 months, with an option to end the contract by either party by giving one month's notice.
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