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Who takes care of my home after I have purchased the property?
In the absence of an owner of a property a licensed Property Management Company takes usually care of your home. This property manager is the local representative of the owner, usually based on a property management and maintenance contract furnished with a 'limited Power of Attorney'. The scope of functions can go far beyond rent collection, some examples are: bill payments, handling short term rentals, maintenance and repair, tax filing preparation and so on. Professional Property Management Companies are usually aiming to produce the greatest possible net income over the longest possible time and to keep the property in the best condition.
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What can a Professional Property Management Company do for the owner?
Professional Property Management Companies are committed to maximizing the benefits of your investment through efficient management of your property; thus freeing you from management problems while providing the most professional real estate services. Professional property management teams develop strong relationships with real estate professionals and maintenance contractors to provide you the best blend of services. Property managers are dedicated to keeping your investment in good repair with minimal cost and leasing it at fair market rates while carefully screening and selecting residents. In Condo Hotels Property Managers are running the property like a hotel, this requires extensive Hotel Management skills. In most cases these condo hotels are contracted with a franchise company to manage the property under a brand or flag. It can have a lot of advantages to use a franchise company's capabilities in regard to their international reservation, sales and marketing systems.
Whether contracted to manage the investment of a single property owner, a multiple-property owner, a business professional or a corporation, professional property managers give each client and each property individual attention and care. Professional property management companies want to make your real estate investment a pleasure rather than burden. They are here to satisfy your property management needs.
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What are the Main Tasks of a Professional Property Management Company?
- Stays aware of current rental market conditions, allowing your property to rent at its highest possible price.
- Provide (short term) rental and lease agreements. Is knowledgeable of the short term rental and landlord tenant laws. Provide move in (check-in) and move out (check-out) services and collects rents (accommodation income) and security deposits.
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Computer systems enable property management firms to maintain an exhaustive list of all the features that make your property desirable.
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Minimizes your rent loss by advertising your property for lease. Most property managers advertise your condos and homes for rent on the Internet. Perform duties of leasing agents.
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Provides you with protection through proper lease agreements, rental applications, deposit forms, addenda, late notices and other legal documents.
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Provides comprehensive tenant screening to assure you qualified and responsible tenants for your rental property. Performs credit checks.
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Provides qualified and reasonable priced maintenance personnel who get the job done right.
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Provides key control procedures to protect you and the tenant against unauthorized entry. Makes visits to your property. Handles all communications with the tenants.
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How a Professional Property Management Co. is initially setting up your condo / home?
If you are purchasing a new property or condo unit and are unable to attend the closing, the Property Management Company will oversee the completion of the home and do walk-troughs with the builder / developer. This will ensure that your home is completed to the highest standards. You will be notified of any findings at the walk-through and again when all outstanding work is complete and satisfactory. The new condo-unit / home has to be also inspected by the authorities (see also: LICENSING, SALES TAX AND LEGAL REQUIREMENTS) in order to receive the short term rental license. Your Professional Property Management company will take care of these procedures: they will contact the local authorities, accompany them when inspecting the property, make sure that all requirements are going to be fulfilled and following up with them until the short term rental license is received.
If your home is already complete or you are thinking of changing from another Management Company, most management companies offer a free initial inspection and appraisal and offer advice on preparing your home for rental.
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Who is going to take care of paying my bills in my absence from Florida?
Once you have completed your contract and all necessary documents have been received, the property manager will initiate your services and request that all bills are forwarded to us for payment. You will be required to deposit Escrow Funds usually in an amount between $500 and $1500 depending on the kind and size of property, which will be used to pay your monthly expenses and must be maintained at this amount at all times. You will receive a periodical (monthly or quarterly) statement of your account, which will reflect your income and total expenses. Your revenue, after expenses, will usually be sent quarterly directly to you or deposited in your local bank account, as you prefer.
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Who is going to arrange the condo / home rentals?
The marketing efforts of the Managing Company will supply company-generated customers and as a result Accomodation Income which will usually be split with the owner 60% and 40% to Management Company. Can vary depending on project. The portionpaid to the Management Co. is usually to cover sales and marketing activities and service fees for providing operating services like housekeeping, front-desk, and administrative services.
In addition, we encourage owners to be actively involved with the rental of their property. By supplying your own bookings you will help your investment achieve its highest return possible. As the owner you will be able (subject to notice) to use the property for you and your immediate family as often as you wish. Usually, the only charge for using the property will be a service charge for the provided housekeeping, guests and amenity services.
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Who is in charge for maintenance and repair?
Your condo or home will inevitably require occasional maintenance. The Management Co. will usually carry out preventative maintenance (touch up painting, A/C Filters, replacing light bulbs rather than repairs wherever possible. For this service the owner will be charged with a monthly maintenance fee (between $15 and $30 depending on size of property). Usually, the owner will be advised on all anticipated major maintenance / repair and will arrange for competitive quotations for all necessary contracted work. All maintenance repairs and costs will typically appear on your monthly statement.
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Who takes care of Lawn and Pool Maintenance?
Due to the Florida climate, your lawn will require regular maintenance. Usually, a lawn company will be contracted to have the lawn maintained, which will include mowing, weeding, edging and tending to shrubs when necessary. Your pool may be the number one reason that vacationers want to stay in the property and it will require regular maintenance. A licensed professional pool service will typically be contracted to maintain and clean pool and surrounding areas as required by the Regulations of the State of Florida.
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Will there be some Pest Control Services?
Pest control service will be initiated on a monthly or quarterly basis upon the signing of your contract. This is a preventative service with a fully licensed company and your property will be treated regularly.
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Who is going to take care of the Cleaning and Housekeeping Services?
Your condo / home will typically be cleaned on a daily basis or in a single home regularly upon each guest's departure and intermittently during any long-term rentals as appropriate. The service will include linens, rubbish removal, dusting and sanitizing the bathrooms.
In condo hotels the service will be adequate to the standards of the quality level of the hotel brand.
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What kind of insurance do I need for my property?
By State Law you are required to maintain a rental dwelling liability insurance policy as well as hazard insurance. Important is also to include a hurricane insurance and / or flooding insurance coverage. We recommend a standard hazard policy with a minimum of at least the actual market value of your property.
If your property is mortgaged, your mortgage payment may be included in your monthly mortgage obligation. We can assist with the set-up of a suitable policy if you require this service.
In a condo hotel the insurance premiums are already covered by a for all owners mandatory mutual property and liability insurance policy initiated by the owner-association, which will be assessed to each unit owner once a year based on proposals of condo hotel insurance companies.
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Are there any Licensing, Sales Tax and Legal Requirements?
Your property must be licensed with the Department of Business and Professional Regulation and you must maintain an occupation license if your property is located in Osceola or Orange County (Can vary by county). State Sales Tax of 7% and County Accommodation Tax of 6% is payable on all bookings and is collected directly from guests. Non-compliance with the above-mentioned requirements can lead to fines or even loss of the property license.
Under state requirements there are also items for the home that will need to be installed prior to the first booking: i.e., fire extinguisher, emergency lights, smoke detectors, emergency exit signs, pool alarms, etc. Property Manager will usually arrange to supply such items as needed, the costs will be debited to your account.
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What kind of annual taxes do I have to pay as a home owner?
As a Florida home owner you are supposed to pay two kind of taxes:
REAL ESTATE TAXES - Annual property taxes will remain your responsibility. If your property is mortgaged, this payment may be included in your monthly mortgage obligation; otherwise you should receive notification from the County Tax Assessor of the amount and due date. Please ask us to assist you in arranging timely remittance of tax dues.
FEDERAL INCOME TAXES - Typically a Property Management Co. will provide you with a statement of your income annually and a copy will also be sent to the Federal Government. At this time you will need a Federal Tax I.D. number. If wished please ask us to assist you in solving these requirements or to introduce you to a knowledgable and experienced tax accountant.
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