Ep. 115 Denis Hanks: 3 Things Vacation Rental Owners Must Know for 2017

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vacation rental regulations to know for investorsFlorida is a huge market for vacation rental property investors. Florida is a leader in the tourism industry and vacation rentals are rapidly becoming a major economic power.

The rise of shared lodging options has led to a surge of interest in vacation rental properties from investors.

Despite increased economic impact, the vacation rental industry remains a complex and sometimes hostile landscape for investors to navigate. Regulations on vacation rentals vary widely on a state, municipal and association-based level.

Denis Hanks, Senior Director of the Florida Vacation Rental Managers Association (FVRMA), knows just how complex this landscape can be. For over 21 years, FVRMA has been a legislative voice for the vacation rental market industry, in addition to providing property management solutions. Denis brings 20 years experience in state and municipal government to FVRMA’s oversight and efforts.

This episode, Denis discusses some things investors should know for the vacation rental industry in 2017.

Florida Vacation Rental Industry

  • $31 billion/year economic impact
  • Captures nearly 50% of tourist dollars
  • Comprised of condos, single family homes and luxury home resorts
  • Central FL
    • 4,000 new developments dedicated to vacation rentals
    • 25% of U.S. vacation rental market

3 Things to Know for 2017

  • Frequency and Duration
    • FL Statute 509 – preemption protects property owner rights; State cannot prohibit frequency and duration for vacation rentals
    • Regulations can change from municipality to municipality
    • Investors need to do due diligence on local zoning/compliance regulations
    • Be aware of condo/homeowner association regulations
  • Metro Miami/Broward
    • Top 2 international buyer markets in FL
    • Most hostile regulations
    • $20,000 violation charges in Miami; $1,000 per dy fines in Ft. Lauderdale
  • State Regulations
    • Pressure from local officials to remove Statute 509 Preemption

Resources

FVRMA provides a voice for vacation property investors in the state. Members have access to educational resources in addition to legislative lobbying. To find out more about the services offered by FRVMA, visit their website www.fvrma.org or call 407-201-0120

To contact Denis regarding what you can do to learn more about being a vacation rental investor, email him at denis@fvrma.org.

Check out Episode 39 Greg Bugay – Things You Should Know About Growing a Vacation Rental Business in our show archives!

 

Ep. 112 Courtney Barnard: Legislative Update for Multifamily-Residential Property Owners

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multifamily-residential property legislative updateWe’ve been hearing a lot about Florida’s single family property markets, but what about multifamily-residential property?

Though multifamily-residential may not share the same spotlight that single family is getting, apartment investing makes up a big economic portion of Florida’s real estate market and there are some big legislative changes coming to multifamily residential property that investors need to be aware of.

We are glad to have Courtney Barnard back on the show. Courtney serves as the Government Affairs Director for the Florida Apartment Association (FAA). Courtney appeared previously, in episode 42, where she discussed then-current legislative updates to multifamily-residential property.

This time, she discusses some key changes coming with the 2016 legislative updates. This episode, Courtney also gives us a Florida multifamily market overview in addition to sharing important legislative updates for multifamily-residential property owners.

Florida Multifamily-Residential Property Overview

  • Jacksonville – largest apartment growth (new construction)
  • Sarasota/Bradenton – decline in growth
  • Over 96% occupancy statewide
  • New construction focused on Class A and Class Super A – $145k/unit costs
  • Lack of affordable multifamily developments

Legislative Updates

  • HVAC Maintenance
    • House Bill 535, July 2016
    • Apartment investors with 100 unit or more buildings
    • HVAC repairs can now be made by on-site building maintenance and not HVAC contractor
    • Bill Info
  • Non-Residential Property Tax Exemptions
    • 10% cap on non-residential property tax increases set to expire in 2018
    • No cap could hurt a lot of investors and small-business owners
    • Joint resolution to be put forth to reinstate cap permanently
  • Fire Sprinklers in Building
    • Florida administration code-change from National Fire Protection Standard
    • Takes effect Dec. 31st, 2016
    • High-rises over 75 feet required to have sprinklers in residences and common areas
    • Previously, buildings built before 1994 were exempt
    • Condos + Co-ops can vote to opt out, but apartment investors must comply UNLESS: balconies/secondary entrances are attached to every unit

Florida Apartment Association

The FAA has been in place for 45 years. With 11 regional chapters and over 5,000 apartment communities, the FAA offers members access to great benefits:

To find out more resources offered by the FAA and for other updates from Courtney, visit www.faahq.org.

Ep. 110 Andrew Cohan: Investing in Vacation Properties through Branded Hotels

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investing in vacation propertiesFlorida, the dream destination. A vacationer’s paradise; the land of perennial sun and fun.

Florida has long been a favorite of vacationers. It has also been a favorite of those investing in vacation properties. Investing in vacation properties is a major market for Florida real estate investors.

We have discussed investing in vacation properties before. In ep. 39, we discussed investing in vacation properties using Airbnb, with Greg Bugay. This episode, however, focuses on the hotel market in Florida.

 

Who better to discuss that than Andrew Cohan?

Andrew Cohan is Managing Director for Horwath HTL, serving mainly Florida and the Caribbean. He is an expert on health and wellness resort properties and lends his expertise to determining optimum market demand for these types of properties.

This episode, Andrew discusses investing in vacation properties through branded hotels.

Miami Hotel Market

Investing in Vacation Properties through Branded Hotels

  • REITs
  • Condo-hotel units

Investing in Condo-hotel Units

  • Not a conventional, cap rate-type of investment
  • Unit investors typically earn about 40 percent back on investment
  • Owner, manager and developer of resort may be 3 separate entities
    • Investors need to know that circumstances may change over the investment’s life-time

Condo-hotel Draw for Developers

  • Quick exit, high return opportunity
  • Don’t have to worry about property management
    • Brand managers or non-brand managers

If you are looking to find out more about investing in vacation properties through branded hotels, you have more questions about acquiring a condo-hotel unit or you are a developer looking to transition to hotel/hospitality, you can contact Andrew directly by phone or email:

(305) 606-2898

acohan@horwathhtl.com

Ep 87 Tom Blazejack: Miami Real Estate Market Overview

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business-portraits-009Things are happening in the Miami real estate market… Well things are always happening in the Miami real estate market, but BIG things are happening right now. Miami has long been the focal point for real estate investors due to the density and scale of development and the investment opportunity for a variety of asset classes. Real estate investors all over Florida have looked towards the Miami real estate market as a forecast for current and future conditions throughout the state.

Tom Blazejack, of Blazejack & Company knows all of the ins and outs of the Miami real estate market. In addition to nearly 40 years’ experience as a real estate appraiser and analyst, Tom is also a native of Miami. Tom’s extensive appraisal knowledge of commercial and residential properties and intimate knowledge of the Miami real estate market make his consultation highly sought after by investors. This episode, Tom gives us an overview of the Miami real estate market, including development highlights and what investors should expect.

Miami Real Estate Market

  • 2011 purchase of Miami Herald building for $236 million marks return of market
  • Foreign investment and cash-heavy market
    • Foreign investors seeking stable properties to invest cash
  • Development spikes
    • New deposit requirements for investors and developers insures accountability
    • Lenders alleviating construction loan costs for developers
    • Projects moving quicker
  • Land price increases
    • Miami seeing $200-300/sqf on new commercial developments but even as high as $3000 in some prime locations
    • Residential continues to increase… up to $3/sqf in best projects
  • Emerging Markets
    • Development spreading into surrounding Miami
      • Little Havana, Wynwood, Coral Gables all seeing new projects
  • Major Projects

To contact Tom with for an appraisal consultation or for further analysis of the Miami real estate market visit his website. He can also be emailed at tom@blazejack.com

Ep. 79 Cuban Immigrants – Coming to America & Discovering Real Estate pt. 1 of 2

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AR-150519874Cuba. The island nation of roughly 11 million situated 90 miles south of Florida has, for decades, cast a large shadow over its continental neighbor. The U.S., especially Florida, has had a profound and diverse history with Cuba. Cubans and Cuban-Americans have played a nominal role in shaping Florida’s commercial landscape as well as cultural backdrop, with Tampa and Miami representing two major pockets of Cuban heritage and influence. This episode may be a bit of a departure from our typical shows, but as bilateral relations between the two countries progress, both Cuba and U.S. industries anticipate a major developmental boom that has real estate investors watching closely. This special episode will be represented in two parts with our guests sharing both some personal stories of their immigration into the U.S. as well as their involvement in Florida’s real estate markets.

Josue Romero is a mortgage broker serving as owner of My Lending Hub, a mortgage brokerage service company based in Tampa, Florida. Juan Nunez is a real estate investor in Tampa and currently owns and operates Zenun Enterprises, an investment firm focusing mainly on single-family markets. In 1999, Josue and Juan both arrived in Florida with their families seeking asylum. At the time, Cuba was in dire straits. Though the boys were young at the time, their families knew all too well the devastating effect of the ‘Special Period’ on Cuban welfare. When their families reached Tampa, they set about cementing the American dream as a reality with little more than resilience and hard-work. Despite its status as a Communist country since 1959, the Cuban disposition has always been innately capitalistic. Through their stories, Josue and Juan will introduce us to the concept of Inventar – the wholly Cuban approach to making something from nothing. We will learn how this unique ability and ingenuity lead to such a fluid and fruitful transition into mastering Florida real estate markets.

 

 

Ep. 55 – Brian Bandell: Update on the South Florida Real Estate Market

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3657aafSouth Florida has always been in a class apart from the rest of the state in terms of real estate development. The South Florida real estate market has lead the state in real estate investment and growth. Despite it’s ups and downs the South Florida real estate market has historically been a market indicator in terms of development and investment activity. South Florida’s unique positioning and heavy influence of foreign investment makes this market an interesting and dynamic one.

Brian Bandell is a senior journalist with the South Florida Business Journal covering real estate, transportation and logistics. For over a decade, Brian has served the South Florida business community. With an expert ear for news, Brian gives us a brief, but detailed overview of the South Florida real estate market and what is in store for future developments in the area.

  •  $7.5 billion in construction starts in Miami and South Florida
    • Condominium/Multi-family
    • Retail
  • Developers/Developments
  • South Florida economy driven by tourism and foreign investment
    • Heavily dependent on international markets
    • Strengthening of USD may adversely affect South Florida investments
  • Miami moving towards transit city
    • Metrorail connects major points in Miami
    • Metromover connects Downtown Miami
    • Trirail connects Miami to West Palm Beac
    • All Aboard Florida rail project will connect Miami to Orlando
  • Issues
    • Commuting is still difficult in South Florida for those who don’t live near transit stations or commute by car
    • Development in South Florida does not represent demographics
      1. Developments are for high-end/luxury spaces
      2. Middle-income bracket job growth not suited to high-end developments
    • Rapid rent increases
      1. Multi-family rent increases: 8.8% in Miami-Dade, 7.1% in Broward and 5.8% in Palm Beach
      2. Weekly wage increase: 2%

To find out more about Brian’s work with the South Florida Business Journal visit their website

In addition to his journalistic successes, Brian is also a published author of fiction! Look for his books on Amazon

 

Ep. 52 – Real Estate Development is a Big Part of All Aboard Florida Rail Project

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john_guitar_final_3-24-2015For those who haven’t heard, All Aboard Florida is a high-speed rail project connecting Miami and Orlando via Fort Lauderdale and West Palm Beach. The project is slated for public use in 2017.

The project will have a major impact on transit in South Florida and Central Florida. The rail project will also have a profound effect on real estate development in the state. John Guitar, Senior V.P. of Business Development discusses All Aboard Florida’s interests in stations and transit-oriented real estate development.

  • 4 million sq. ft. rail transit
    • Miami
    • Orlando
    • Ft. Lauderdale
    • West Palm Beach
  • Utilizing privately owned space in F.E.C. “Flagler Corridor”
  • High-speed Transit
    • 79-110 mph
    • 125 mph (with no grade crossings)
  • Miami
    1. Retail
      1. 200k sq. ft. real estate development for Downtown Miami Station
      2. Servicing local and commuter traffic
    2. Office
      1. 2 Developments planned: 200k sq. ft. & 100k sq. ft.
      2. Accessible locations for commuters
  • Ft. Lauderdale / West Palm Beach
    • Several retail and residential plans in works for future development

To contact John with questions regarding All Aboard Florida’s real estate development and leasing opportunities or to find out more about the project visit the project website www.allaboardflorida.com

www.miamicentral.com

All Aboard Florida – Economic Story

 

EP10 – What is Happening in Miami Real Estate Development? Where Is the Market Headed?

The Miami real estate market is one of the most resilient markets in the world and certainly the strongest market in the State of Florida.  It was left for dead after the 2008 market downturn and even optimistic projects estimated it would take at least a decade to rebound.  Fast forward to 2015 and the Miami market is seeing eye-popping growth, not only in construction starts, but also a rebound in prices.

193x257_TimBecker_9988Tim Becker, CCIM & Director, Kelley A. Bergstrom Center for Real Estate Studies, is our special guest for this first of a four part series of the State of Florida’s major real estate markets, in preparation for the Center’s Trends and Strategies Conference February 26-27 in Orlando, Fl.

In this part of the series Tim gives a brief overview of what is moving and shaking in the Miami real estate development scene and some areas of potential concern.  If you are an active or aspiring real estate investor in the Florida markets, you will definitely want to catch all four parts of the series.

 

Check out this episode!

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