Transient vs. Non Transient

One thing you need to know when considering investing in Key West real estate is that there are two types of vacation rentals in the City of Key West; transient and non-transient.

A property with a transient license can rent like a hotel, by the night.  A non-transient licensed property requires a minimum 30 day lease.

Transient licensed properties allow for more rentals per year and as a result you can expect to see returns of 10-12% on the gross purchase price. The City of Key West used to issue transient rental licenses for a nominal fee to those homeowners who wished to rent their homes by the night. They stopped issuing those licenses quite a few years ago, but grandfathered all licenses that were in existence.   The result?  Think NYC taxi medallions, but on a smaller scale of course.

As a result of the high demand and limited supply, transient licensed properties have been selling at a premium and even above asking price in some cases.

Head over to Last Key Realty’s Key West Homes Recommended for Purchase for a list of transient properties that are believed to have exceptional potential for vacation rental income.  

Non transient rentals are required to have a month long lease (minimum 28 days) and can expect to see 5-6% return on their gross purchase price.  Although non-transient rentals can expect to see a bit less in rental income they also come with a lower price tag.  You are probably asking yourself if there is even a market for month long rentals in Key West.  The answer is yes, absolutely!  Last Key Realty manages over 100 luxury vacation rentals and more than half of them are non-transient.

The type of vacation rental you purchase depends on what your needs and wants as a homeowner are.  Whether you are looking for maximum return, a seasonal home, or both I am uniquely qualified to help you choose the perfect home for your needs!  Contact me today to talk more about investing in Key West real estate.

 

What Is A Buyer’s Agent?

In real estate there are a few different types of relationships or agencies, as the State of Florida likes to call them, between the buyer and their agent.  The most common is called a transactional agent.  This means just that; the agent is there to facilitate the transaction.  A transactional agency provides a limited form of representation to a buyer, seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent.

A Key West Buyer’s Agent falls into the single agent category.  By definition, a Key West Buyer’s Agent gives you an expert, on your side, 100% of the time.  Buyer’s agents have a fiduciary responsibility to their clients and must act in their best interest will full disclosure.

From a buyer’s agent you can expect:

1.  A candid and objective perspective on the Key West Real Estate Market in order to help you determine the home size, price, location, and style that is right for you.

2.  Assist you through the process of touring and comparing homes so that you can find the one that is a match for you.

3.  Help with financing and closing requirements as well as the closing process.

4.  Assist you in problems or concerns that you may have after the closing.

Working with buyer’s agent is beneficial for all buyers for the reasons above but will prove to be especially beneficial for those interested in purchasing property as an investment and will be what I call an “absentee owner”.  This is an owner that is seeking to purchase a home as an investment with little to no personal use.

By choosing to work with a buyer’s agent means the buyer can be submerged in their daily routine all the while having a dedicated professional working on their behalf, helping to find their Florida Keys home.

Myself and Last Key Realty are uniquely qualified to help you choose the perfect home for your needs and then effectively manage the home for vacation rental.  Contact me today!

 

 

 

Source: The 2014 Florida Statutes,  http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&URL=0400-0499/0475/Sections/0475.278.html

Source:  Last Key Realty,  http://www.lastkeyrealty.com/invest-key-west/