What South Florida Investors Need to Know Before Purchasing a Ft. Lauderdale Condo
System - Wednesday, June 3, 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.
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.
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!