Pensacola Realty Masters Blog
Realty Masters is happy to present the following Pensacola area community and Pensacola real estate information!
As we head into a 60-day session of the Florida legislature, both the Florida Realtors and Florida State Chapter of the National Association of Property Managers are keeping us informed of possible new legislation. Here's a few of the 2020 Legislative Bills we are watching concerning Florida real estate.
HB 6069 Landlords & Tenants
"Removes requirement that certain money can be paid into registry of court."
HB 6013 Rent Control Measures
"Deletes provision prohibiting specified local governments from adopting ordinances or rules imposing price controls upon certain business activities."
SB 1852 Landlords & Tenants
"Revising the definition of the term “tenant”; providing requirements for rental agreements; requiring landlords to provide certain information with rental agreements; prohibiting a landlord from evicting a tenant or terminating a rental agreement because the tenant or the tenant’s minor child is a victim of actual or threatened domestic violence, dating violence, sexual violence, or stalking, etc."
HB 321 Declared State of Emergency
"Prohibits specified service of process during declared state of emergency; provides immunity from liability for certain persons; tolls specified time periods for certain evictions; requires court to stay certain eviction proceedings."
HB 1449 Residential Tenancies
"Revises & provides requirements for rental agreements & landlords; removes option for landlord to deposit money into specified account; removes requirement money be paid into registry of court; authorizes filing of civil action & award of damages, court costs, & attorney fees; provides requirements for certain evictions; specifies what constitutes unreasonable rent increase; prohibits park owner from taking certain actions during pendency of dispute; increases payment homeowner may collect from Florida Mobile Home Relocation Corporation in certain situations; revises provisions relating to sale of mobile home park."
HB 209- Emotional Support Animals
"Prohibits discrimination in rental of dwelling to person with disability who has emotional support animal; prohibits landlord from requiring such person to pay extra compensation; authorizes landlord to request certain written documentation; prohibits falsification of written documentation or other misrepresentation; specifies person with disability is liable for damage done by emotional support animal; prohibits health care practitioner, as exclusive service to patient, from providing documentation for emotional support animal for fee."
SB 1128 / HB 1011- Vacation Rentals
"Preempts regulation of vacation rentals to the state; prohibits local law, ordinance, or regulation from allowing or requiring inspections or licensing of vacation rentals; requires licenses issued by the Division of Hotels and Restaurants of DBPR to be displayed conspicuously inside licensed establishment; preempts regulation of advertising platforms for vacation rentals to the state; provides requirements for advertising platforms."
HB 469 Real Estate Conveyances
"Provides that subscribing witnesses are not required to validate certain instruments conveying leasehold interest in real property."
HB 229 Swimming Pool Safety
"Requires home inspector to include certain information relating to swimming pools in his or her report; requires that new residential swimming pools meet additional requirement in order to pass final inspection & receive certificate of completion; requires that certain pool safety features meet specified standards; prohibits property owner from transferring ownership of parcel that includes swimming pool unless certain requirements are met; provides civil penalties rather than criminal penalties."
Want to follow along? The Florida Realtors Legislative Tracker allows us to review proposed bills and follow the status with in-depth information here. With nearly 200 proposed bills that home some tie to real estate, we will surely see some results from this year's legislative session. Of course, we will keep you posted with legislation that passes as the year progresses.
With any measurement based on a future predictions or hypotheticals, we know that many parameters, and events can change the results,but that shouldn't stop us from doing our due diligence on the front end of investment properties.
Let's take a look at the kinds of properties I focus on, which are single family homes that are easy to finance with 20% down for investors.
Below is an example of a home purchased for $100,000 with a $20,000 down payment and an $80,000 mortgage at 5% interest. I used a 2% property appreciation rate and 2% annual increase for rents and expenses, and a 10 year holding period.
Annual Rental Income: $1000 per month rents less 2% vacancy = $980 * 12 = $11,760 per year.
Basic view: Invested $20,000 (down payment) for 10 years and then cashed out.
See the chart that shows the growth. (Chart is courtesy of Chris Bird with CRS and came from his investment analysis course which I attended).
Feel free to utilize this formula and information when analyzing your own real estate investments. Reach out if you have any questions about analyzing real estate investments in the Pensacola area.
We've all noticed the increase in rental rates in the Downtown Pensacola area over the past few years. We decided to dig into the data to see exactly how much rents have increased. Overall, single family rents in downtown Pensacola (zip codes 32501 and 32502) have increased approximately 25% over the past 5 years. In comparison, the average Pensacola area rental rates has increased approximately 13% over the last 5 years. That means that Downtown Pensacola rents are increasing nearly 2 times the amount as the overall area rental rate.
The average asking price today on Pensacola MLS for a single family rental in Downtown Pensacola is $1,422! A lot of these properties are new construction homes which of course come with a higher price tag. The rising rates in the Downtown Pensacola area are marking it harder to find an affordable downtown rental.
What do you think are other factors contributing to this steep increase? Here are a few of our observations:
- Ongoing Downtown Pensacola revitalization
- Increase in new construction
- Renovations on existing properties
- Increasing rental rates overall
We will continue to monitor the Pensacola rental market and keep you posted as to any changes in rental values.
The Realty Masters of FL Team
#1 in Pensacola Property Management and Leasing!
Rental Office 4400 Bayou Blvd. #58B, Pensacola, FL 32503 (850) 473-3983 www.PensacolaRealtyMasters.com
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originally posted 02-02-2019
The Pensacola Real Estate Market is strong!
We are taking a look back at 2016 Real Estate Statistics. The Florida Real Estate market, which was known to be hard hit by the recession, is showing continual signs of improvement. This is great news for homeowners and landlords but not necessarily great news for tenants.
Let David Keen, Realtor, give you a rundown of some of the highlights of the 2016 Pensacola Real Estate Market.
Here's a summary of what David Keen, Realtor, has to say.
Pensacola Real Estate Market
- Home Sale Prices in the Pensacola Area were up about 5% over 2015 Home Sale Prices
- Inventory is down and supply is limited
- New Construction makes up a large percentage of inventory
- Foreclosures and Short Sales are now only about 3% of active sales inventory
- Average time on the market for properties for sale in Pensacola is sitting at approximately 90 days
With days on the market down along with inventory and supply, sales prices are likely to continue to increase in the Pensacola area. As David mentioned, the distressed inventory made up nearly 29% of our active inventory just two January's ago and now the distressed inventory is down to about 3% of active inventory. Because so many of the sales comparables were distressed properties, it kept the market and appraisal values down. In comparison, today in 2017, nearly 1/3 of the active inventory are new construction, or brand new, homes.
As we are expecting an increase in interest rates in the coming months, many buyers are using this opportunity to purchase a larger home and sell their old home or deciding to make the leap from renter to homeowner.
Pensacola Rental Market
- Rental Rates have increased about 3% over 2015 rental rates. While this is not as strong as the improvement for the sales market, we expect tighter inventory to continue to drive rental rates up!
- The average rental rate in Pensacola is up to approximately $1,100
- Rental Supply is limited with nearly 1,000 fewer units on the single-family rental market than five years ago.
What do these statistics mean? The shrinking inventory of Pensacola area rental properties comes from forced landlords who previously could not sell their homes. These hesitant landlords leased their homes, condos, and townhomes out of necessity, not out of desire. Because of the improving real estate sales market, hestitant landlords are choosing to sell their properties rather then releasing when their tenants vacate. This trend began in 2013 but ramped up in 2016.
The increase in rental supply in 2014 comes from a huge increase in investor purchases as prices were down and distressed inventory was high. Now that it's harder to find affordable investments in the Pensacola area, the investor sales have finally leveled off although demand has not. We expect even more landlords to sell their rental properties this year further tightening the rental inventory. Because of these factors, rental prices will continue to increase over the coming years. This lack of inventory and increase in prices is forcing some renters to make the leap to homeownership earlier than they had desired!
Are you interested in building a rental portfolio? We have owners ready to sell their rental properties and know where you can find the best deals on auction sites, with tax deed sales, and with existing foreclosure inventory.
Do you have questions about the Pensacola rental market or the sales market? Reach out to our team for answers!
David Keen, Realtor
#1 in Pensacola Rental Houses
originally posted 03-02-2017
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