305-831-2100
4649 Ponce De Leon, #400
Coral Gables, FL 33146

The Tax Advantages of a 1031 Exchange, by a Miami Property Manager

Brian Meyerowitz - Tuesday, June 30, 2015


Today we are talking about 1031 Exchanges and the benefits they can provide rental property owners. A properly structured 1031 Exchange allows an investor to sell a property and re-invest the sale proceeds into a “like kind” property. This tax maneuver permits the investor the opportunity to defer the capital gains taxes they would have had to pay without the Exchange. 

In order to participate in a 1031 Exchange, the Investor needs to retain the services of a Qualified Intermediary. If you are interested, Florida Property Managers can refer you to a Qualified Intermediary who specializes in this type of transaction. A successful property exchange includes very specific rules that need to be followed in order for you to obtain these tax savings. 

To realize the full potential of a 1031 Exchange, there are time constraints. The Investor must identify, contract, and close the real estate sale(s) within a defined time period otherwise the tax benefits are lost. 

Per the tax code, it is important that the Qualified Intermediary is not your tax preparer or any other professional you have had dealings with in the last two years. This includes your accountant, attorney and real estate agent. The Qualified Intermediary you choose should be bonded and insured against errors and omissions for anyone involved. 

 There are also special considerations for our foreign investors, which we’d be happy to tell you about. If you’d like more information on the 1031 Exchange, please contact us at Florida Property Managers.

4 Signs You Need to Fire Your Current Ft. Lauderdale Property Management Company

Brian Meyerowitz - Wednesday, June 24, 2015
 
How do you know if it’s time to fire your current property management company? We think there are several things to think about if you’re not getting the service you need from your management firm. 

Communication 


A lack of communication is a definite problem. Your property manager must promptly return phone calls. It’s not unreasonable to expect to hear from someone within the hour. Even if they can’t answer your question or solve your problem right away, they should let you know they’re working on the issue at hand. 

Vacancy


Is it taking too long to rent your properties? This may be because your property manager really doesn’t know the area, or perhaps isn’t marketing the property correctly. Every community has a different response to the various marketing approaches. In South Florida, the Multiple Listing Service (MLS) is vital. We make sure we get your property as much exposure as possible. Listing it on the MLS generates tremendous activity. The more people who look at your home, the greater the potential for higher the. Of course, quicker turnover time means more profit! 

Vendors 


If your property manager is not using licensed and insured vendors, you have a good reason to consider using someone else. Do your vendors pull permits? If not, you risk penalties and fee assessments from your local municipality. 

Accounting 


Problems Failure to properly account for your funds is another reason you might want to consider replacing your property manager. You should receive your rental income on a timely basis every month. Usually, a property manager will designate one or two days a month for transmitals. You shouldn’t expect to get your money the day the rent is paid, but a good property manager will disperse your funds on a consistent basis. 

Please contact us at Florida Property Managers if you have any questions about this, or you’d like to talk about it further.

Protect Your Anonymity as a Landlord with a Property Manager in Ft Lauderdale

Brian Meyerowitz - Tuesday, June 16, 2015

Today we are taking a minute to talk about protecting your identity from tenants and remaining anonymous in the rental process. Many of our investors love spending their investment dollars on South Florida real estate, but they really don’t want the tenants to know who they are. That’s perfectly legitimate.

 

On the leases that are signed with your tenants, we do need to name who the owner of the property is. This is information that is also available through public record, so it’s nothing to be concerned about. Beyond that, we don’t provide any additional information on the lease or anywhere else that indicates who you are or how to contact you. Tenants won’t have access to your phone number or your email address. We put the Florida Property Managers name and contact information on our leases. We also provide tenants with our physical location in case they need it.

 

The fact that you don’t want to get to know your tenant shouldn’t stop you from purchasing real estate in Florida. We can help you buy and manage properties while protecting your anonymity.

 

If you’d like more information on this topic, please contact us at Florida Property Managers, and we’d be happy to answer any questions you might have.

What Should I Buy When Investing in Ft. Lauderdale Real Estate?

Brian Meyerowitz - Thursday, June 11, 2015
One of the first questions I’m asked by clients involves my opinion of the type of investment property to purchase. Each type of property has its own benefits and challenges. 

Condominiums

With a condo, owners often face restrictions on the length of time they have with leases. Each condo has an association and that association has waiting periods and limitations. Multi-family and single family houses have no such challenges or restrictions. Condo owners face fluctuations in monthly maintenance fees, and possible special assessments for major maintenance items such as the roof, pool, or elevators. 

Single Family 

A single family home gives you the best chance to customize the property and maximize your rental return. Even if you buy a home in a community with similar homes, the investor can modify the intelligently modify the property in order to maximize the return. With a condo, you’re capped on what you can get in rent because you’re competing with other units that are pretty much the same. 


Multi –family 

A multi-family unit has its own benefits. If there are four units in the building and you lose one tenant, that vacancy will not completely halt your cash flow. You have 75 percent of your revenue still coming in. With a single family house or a condo, that vacancy brings you no return at all. 

Please contact us at Florida Property Managers, and we can talk about your specific needs.

What South Florida Investors Need to Know Before Purchasing a Ft. Lauderdale Condo

Brian Meyerowitz - Thursday, June 04, 2015
A lot of investors ask us what they should consider when they’re purchasing a condo in south Florida. It’s a good question because each condominium has its own set of rules and regulations that have to be followed. 

Evaluation and Approval

Some communities require an owner to be present for an interview before closing on a property.  That won’t be a problem if you have the ability to come down and look at the property and participate in the interview process.  There’s also an evaluation conducted by the building which takes place 15 to 30 days before the closing.  If the property you’re considering has those rules, make sure you can accommodate them. 

Rental Rates

If you choose to invest in a condominium, the expected rental rate is relatively easy to discern based on the history of prior rentals in that building.  While this knowledge helps to ascertain your expected rental return in advance of a purchase, the investor must be aware that the ability to greatly increase rent is limited by the rent rates the building historically generates.


Waiting Period

Many buildings in South Florida have rules requiring an investor to “wait” a period of time (often 1 year-sometimes longer) prior to renting their newly purchased condo.  Further restrictions may limit the length of the lease term.  The point we wish to get across, is that all buildings have different rules.  It is wise to investigate before you spend your investment dollars.

If you want more information, or if you have a particular building you’re interested in, we can do the research for you.  Please contact us at Florida Property Managers.  We are happy to help!


Does it Make Sense to Invest in Student Housing? Miami Investor Education

Brian Meyerowitz - Thursday, May 28, 2015


We have seen a recent trend whereby investors are purchasing rental property near Universities. Our clients have had tremendous success with these properties. Most of our investors are renting out homes near the University of Miami, Florida International University, Barry University and even NOVA Southeastern, which is located in Davie Florida.

 

When marketing the property, we can specifically solicit students. As a bonus, we’re able to market from within the college’s off-campus housing websites.

 

Small groups of students are usually thrilled when they see how much space they get for their money as opposed to a dorm setting. We seek to protect our owners, by obtaining guarantees of the rent payment executed by the parents.

 

The market for investment property in the student housing field is fluid. When the time is right, contact us at Florida Property Managers, and we can help you take a look at the available purchase inventory.

How to Choose a Ft Lauderdale Property Management Company

Brian Meyerowitz - Wednesday, May 20, 2015
 

Let’s talk about the things you need to consider when you’re hiring a property management firm

Designations

Find out what sort of designations a property management company has. You need to work with members of the National Association of Residential Property Managers (NARPM). That should be the number one thing you look at before making a decision

Experience

What sort of experience do they have in the marketplace? You want to find out if they manage only residential properties or if they do both residential and commercial. Perhaps they have separate divisions. That might work, but you may be better off with a company that focuses strictly on the specific type of management you require.

Accounting

Ask about the accounting systems in place. You will need something that matches your needs and the needs of your CPA and attorney. The sytem should be a fully automated process that can generate reports on a regular basis. You need to discuss these details before you hire a new company.

Staff

Staffing is an important part of working with a property management company. You’ll want to know if they have various departments you can speak to when you have questions, or if one person runs the whole show. Each format has its benefits and challenges, but you need to know how the company works.

Vendors

An important question to ask is whether the property management company has its own maintenance staff. You also need to know if they use licensed vendors who use permits when necessary. A property manager needs to proactively replace items in your home that need repair. For example, spending $300 to fix a water tank instead of spending $400 to replace the water tank is not the best use of your funds.

Rental Laws

When you’re speaking with the property management firm that you may hire, ask if they keep up to date on the changes in the rental laws. Here in Florida, we had a major change that took effect in January of 2015, pertaining to smoke detector requirements. Any new rental unit that is purchased or any new lease that is executed requires a hardwired smoke detector or a 10 year lithium ion battery.

 

These are just a few of the things you should ask a property management company before you hire them. If you’d like to hear more about our recommended screening process, please contact us at Florida Property Managers, and we’d be happy to help you.

What is Section 8 and Does it Make Sense for my Ft. Lauderdale Investment Home?

Brian Meyerowitz - Friday, May 15, 2015

 

 

Clients often ask us about the Section 8 program rental program, and if their property would benefit from participation in the Program.  Today we’re going to address those questions.  Section 8 is a government-funded program providing rent vouchers or free money to tenants who don’t have the financial ability to pay market rent for housing and utilities.

 

This is a wonderful program for landlords once you get past the complicated “start-up” process that’s in place.  Setting up a Section 8 Program does take some work.  There are a number of required trips to the local county office to effectuate the program.  Your property does need to be inspected, and it must qualify for the program.  Tenants also need to qualify in order to rent your Section 8 property.

 

In many circumstances, the rental rate we get for a property through a qualified Section 8 tenant supersedes the market rate value of that property. For example, in Miami/Dade and Broward County, the voucher for a 1 bedroom unit provides up to $900 in Broward and just under $1,000 in Miami/Dade.  A voucher for a 4 bedroom home can provide a landlord with almost $2,600 in Miami Dade County!   Often, we can help clients purchase property in communities with rental rates that make the purchase a high quality investment decision.  The key to deciding if this program is a right fit is by looking at the property itself.  You need to compare its market value to the amount of rent we can obtain through a Section 8 program.

 

If you want more information about the Section 8 program and how it can help you make more money for your investments, please contact us at Florida Property Managers in Coral Gables.


Rent vs. Sell: What Should I Do with My Parents’ Ft. Lauderdale Home?

Brian Meyerowitz - Wednesday, May 06, 2015

 

Often, we will hear from one of our investor clients who want to know what they should do if their parents are moving out of their home.  They need to know if it’s better to sell the property or hold onto it and rent it out.  At Florida Property Managers, we do a multi-faceted “test” that will help our clients make the best possible decision.

 

First, we take a look at the home and go over the options available. If the decision is to sell the home, our clients can either sell the property as it is, or do some work to improve it and then sell it at a higher price.  

 

With rental rates skyrocketing in South Florida, we have found that selling isn’t always the best option.  Renting out the property will provide the Owner with regular rental income, while enjoying asset appreciation that will be recognized when the Owner does decide to sell.  Our market analysis will provide you with the market rent and the rate of return you should expect.

 

If you sell the property, you’ll be able to invest those proceeds elsewhere. We will give you the data you need to compare each option separately and see how much you’ll earn.  A full cost benefit analysis will provide you with the options you need to make the best decision possible.

 

We would love the opportunity to help you work through this decision. Please contact us at Florida Property Managers for more information.


6 Reasons to Choose Florida Property Managers to Manage Your Ft. Lauderdale Home

Brian Meyerowitz - Wednesday, April 29, 2015

 

There are a number of very good reasons to consider Florida Property Managers for your property management needs.  Today I will talk about a few specific things that we can do for you.

Residential Focus

We focus entirely on residential property management.  This includes individual condominiums, townhomes, single family homes and small multi-family units.  We have the resources to help you purchase, sell and lease those properties.

NARPM Membership

Our membership in the National Association of Residential Property Managers (NARPM) allows us to bring a wealth of information and resources to our clients. We attend local, regional and national conferences. Consistent regular training through this organization keeps us abreast of any changes in rental property laws. For example, in Florida starting in January of 2015, all newly purchased residential units that require a new lease must have newly installed smoke detectors with a 10-year lithium battery.  Those inexpensive smoke detectors with cheap batteries are now illegal.  Alternatively, we can also utilize the hard wiring process, which is more common in multi-family

buildings.

Tenant screening

Getting the proper tenant in place is the best way to ensure a successful tenancy.  We do a thorough screening process that includes pulling a full credit report, conducting a judgment search, researching landlord history and running a 50-state criminal background search. In Florida, we often find that management companies run only a basic county (local)  search.  Perhaps they verify at the police station that a tenant has no record.   Unfortunately, that type of limited search will not discover felonious activity in another state.

Maintenance

At Florida Property Managers, we make sure your property is properly maintained. We only use licensed and insured vendors to make sure your home kept in proper condition. Our goal is to maintain, not degrade the value of your property.

Rent collection

Our tenants pay their rent online.  Online rent payments flow directly into our accounting/management software.  This form of automation allows us to keep accurate electronic accounting records, and to quickly and accurately generate statements for you, the owner.   Our clients never have to worry about the “the check is in the mail.” as an excuse.

Monthly Reporting

We customize our clients’ monthly reporting.  We have over 30 reports that an owner has access to on a monthly basis. Our bookkeeping staff has them ready for review on time every month. We have many clients with special needs, including international clients and clients with multiple properties.

 

Please don’t hesitate to contact us at Florida Property Managers, and we can talk about how we can meet your property management needs.










Florida Property Managers, Inc
4649 Ponce De Leon, #400
Coral Gables, FL 33146


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