The Orlando Condo Blog

In our last Orlando Property Management blog, we went over some of the things to look out for when hiring a property management company if you are a landlord with a condo, town home or single family home.

Fraud, embezzlement, firings, loss of license: we’ve seen it all before and it often starts when real estate agents get into property management part-time, without knowing what they’re getting themselves into. What most agents quickly find out is that property management is all about finances and book-keeping, and most eventually discover that they’re better at selling real estate than trying to manage it. Anyone can call a plumber or collect a rent check. But when it comes to taxes, leases and evictions, things can come unstuck very easily. So get references whenever you can because in our experience most owners don’t realize they’ve picked a bad management company, until it’s too late.

So what’s important?

Education: One thing you might consider is whether or not the property management company aspect of their work is full time, or just an add-on to a Realtor’s business. Look for some evidence of the company’s managers having shown some educational commitment to the cause. For example, specialized courses such as the Certified Real Estate Property Manager course in Florida.

Contracts: Some landlords, aware that things can go wrong, get fixated on the contract itself and start wanting to change it around to suit them believing they can pre-empt problems this way. This doesn’t usually work (although at Condo Metropolis we try to accommodate where possible) simply because the contracts are usually drawn up by the company attorney and each clause is there for a reason.

I would never advise against reading any contract carefully but the truth is, if your property manager is doing their job, if you’ve chosen well and have an honest, scrupulous manager, the terms of the contract will play second fiddle. I’d rather sign an ominous looking contract but know that my property manager will always have my back, regardless of whatever their attorneys may have included in their contract, than a more landlord friendly contract with an incompetent or dishonest manager. Because in 99% of cases, it’s the managers actions that interest you, not what clauses may or may not be in your contract.

If you’d like more information on our Orlando property management program, see our Orlando Property Management page and then contact us on 407-290-3408 or email: Management@CondoMetropolis.com

The beautiful but beleaguered Veranda Park condos in MetroWest finally had their remaining units picked up by a Canadian buyer from the bank. The sale, towards the end of last year means that the Canadian buyer Geosam Veranda LLC, now has a majority interest in the residential block. This means they can raise the monthly dues (COA fees) if they wish. For example, they could raise them on a 2-bedroom, 2-bathroom from about $350 to about $950. Oh look, they just did.

We’re not sure what the rationale is here but a one might almost assume that there is an attempt underway to push the remaining 20 owners out of the building so that the Canadian group can control the entire inventory. On the other hand, I’m sure the Canadians would say that since there are only 20 owners in the building (the rest are rented), it’s just a question of  dividing the monthly obligations by the number of owners… et voila, that’s an extra mortgage payment from you all each month, thank you very much. And if the current owners say, “You gotta be sh*tting me” and foreclose, guess who’ll be there to buy them back from the bank… Something doesn’t smell right here – but does it ever?

So, while Veranda Park is still one of my favorite projects in Orlando, and while I’ve been recommending it to investors in prior Veranda Park blogs, I can’t imagine anyone really wants to pay home owner fees in excess of the rent itself without any assurances that the condo fees won’t include your first born child by this time next year.

So for now Geosam will just continue to rent out the units and cashflow them as best they can. One thing’s for sure. When they resell them as the market improves, they’ll be looking to recoup the millions they spent investing in the purchase itself. For that, I can’t blame them. The purchase was a risky one and there’s a lot of work to be done to bring the building back up to par, after several years of neglect.

Watch this space and also the MetroWest real estate blog for future pricing.

Investors purchasing distressed foreclosure condos and short sales in the Orlando area are usually from out of state – or even the country, which usually precludes them from managing the property themselves. Most simply opt to use an Orlando Property Management company.

However, locals might be tempted to go the do-it-yourself route – not a bad idea necessarily if you have just one unit, so long as you know what you’re doing: So long as you can handle how to background & credit check a prospective tenant and draft a water-tight Landlord/Tenant contract for lease; so long as you know how to properly escrow their deposits according to Florida Law, and so long as you know how to correctly collect rent or institute eviction proceedings if things go awry.

Some of our clients are folk who thought they’d give it a stab themselves only to realize that for about $80 a month (10% of gross rent) they can wash their hands of the whole headache and just collect a check. It’s money well spent and I’d recommend that route for most landlords – with one proviso. Not all Orlando property management companies are created equal. A good proportion of our clients are made up of landlords that have been “burned” by other property management companies. One local company here is notorious for the way they handle both their renters and their owners with renters not having important maintenance items addressed, and landlords not getting their rent on time. And as recently as yesterday, I received a heads up on another company that is allegedly mis-appropriating funds.

Condo Metropolis started its property management division to service our investor clients who were purchasing through our real estate division. We already have close relationships will all of our buyers by the time we take on their units to manage, we have faith in each other and a level of trust has been established. Each landlord is a face to us, not just a number. As licensed Realtors we are also able to help those investors dispose of their assets when the time comes without having to look for another agent. In this way, we support the entire life cycle of of the investment: Purchase, rent, resell.

If you’d like more information on our Orlando property management program, see our Owner / Landlord management page and then contact us on 407-290-3408 or email: Management@CondoMetropolis.com

A reserve study is a homeowner association’s essential long range planning tool. It charts a schedule for the board to follow for major repairs and replacements (paint, roofing, etc.) and forecasts a budget for each event so the board can set aside money (reserves) each year so adequate funds will be available when the various events come due. It’s an amazing tool that takes a lot of guess work out of the board’s job. Continue Reading »

The Orlando Business Journal reports that Orlando is one of five Florida cities named as best markets in which to invest in rental property. This, according to a quarterly ranking of 100 U.S. markets.

Orlando came in at No. 4, Fort Myers No. 5, Fort Lauderdale No. 8 and Tampa No. 9. Not surprising when Orlando is also the No.1 spot this year to celebrate New Year’s Eve. “So long as the sun keeps shining and that Mouse keeps singing, Orlando property will remain a viable investment,” said Marcus Burke of Orlando’s Condo Metropolis.

“We think Florida is one of the most interesting states in terms of rental property opportunities,” said Ingo Winzer, president and founder of Local Market Monitor Inc.   ”That’s because home prices haven’t bottomed out, and rents will eventually be supported by renewed population growth.”

Rounding out the top 10 list were Las Vegas (No. 1); Detroit (No. 3); Warren, Mich. (No. 4); Bakersfield, Calif. (No. 7); and Rochester, N.Y. (No. 10). Five of the ten cities noted were in Florida.

The quarterly list is compiled by Local Market Monitor and reviewed by HomeVestors of America Inc. It ranks 100 U.S. markets based on the expected future relative returns of homes purchased as rental property. The rankings also serve as a guide for investors in determining how much to pay for rental property.

For more information on Orlando investment opportunities, call Orlando specialists Condo Metropolis on 407-290-3408 and if you’re not reading this on our Blog, visit the Orlando Condo Blog for all the latest Orlando real estate news.

UPDATE: 1/9/12: First 10 now SOLD OUT. Call 407-290-3408 to get on backup list and be notified of further releases.

UPDATE 12/27/11:  Going fast – only 3 townhomes remain: #1543, 1545 and 1531… $89,900…

Season’s Greetings – Here are two great ways to close out your Orlando real estate investment year!

Deal #1 – As New Orlando Town-Homes — under $100K! Just Released.
·  Town homes a few miles west of Walt Disney World;

·  Nice neighborhood and Good schools;

·  7 to 8% net yield ($950 monthly rent minus HOA, Taxes, Orlando Property.Management);

·   Built in 2005 with peak sale prices in low $300s/high $200s (most of these townhomes have never been lived in before);

·   Best of both worlds: zoned Short term rental AND long-term rental (we are starting these with 1-year leases with the option for owner to use as short term vacation rentals);

·   Local property management, offering a Rental Eviction Guarantee;

·   1-year home warranty to limit maintenance surprises for the investor.

SPECIAL DEAL TO BULK BUYER: The seller is asking me if we can get 10 sold in the next 21 days with a $10 discount. Future land around these units will be developed with the same exact floor plans, to be sold for $130k, so there is instant equity in these. Closing to occur on Jan 2^nd.

Step 1: Watch the video here

Step 2: View brochure offering here.

Step 3: Call: 407-290-3408.

NOTE: the first 5 buyers will also have their 1^st year HOA fees paid. This means the net yield (at least the first year) clears 10%. It’s about 7% thereafter. 3 units have sold in the last 72 hours.

More videos of the property:

Street 360 pan (1^st group of buildings): http://www.youtube.com/watch?v=ic1ea01kEks

Street 360 pan (2^nd group of buildings): http://www.youtube.com/watch?v=uNAX0tXYSiQ

Master bath: http://www.youtube.com/watch?v=SLR64PW4Ad4

Interior: http://www.youtube.com/watch?v=RUwGJ9GFMKY

Deal #2 – Investor-Ready, Tenanted Resort-Style Condo – Not Yet Listed!

Turnkey listing… 2-beds/1-bath, Orlando, MetroWest condo for sale (32835)

Call: 407-290-3408 and make an offer – before it lists!

Remember last newsletter when I said that Orlando was ef­fectively underwater?  Well, analysts have one-upped me in a humongous way, boldly stating that half of homes backed by a mortgage are effectively underwater.  By their train of thought, homeowners who owe 85% or more of their home’s value are effectively underwater because they lack the 6% real­tor commission to sell their place and a 10% down payment on whatever new home they seek.  Continue Reading »

Question: The HOA manager told me that my swimming suit was not appropriate and that I should wear something that would cover more. I am Brazilian and I was wearing a bikini that is smaller than the others. But there’s no HOA rule that says that Brazilian bikinis are forbidden. The guide only states “proper swimming attire.” Continue Reading »

Two bus loads of Canadians invaded MetroWest in search of cash condo deals that most locals just can’t afford.

Thanks to the hospitality of the Madison COA management team, they were allowed to run amok around the condominium while they learned about what it takes to pick up a foreclosed condo and other distressed real estate in the Orlando area.

Team Condo Metropolis met the group to head up the morning’s tour with Channel 9′s Josh Benson.

“We wanted to show them that we are equiped to give them exactly what they’re looking for,” said Marcus Burke, Broker for Condo Metropolis. “That is, we can take them through the entire life cycle of their investment within our brokerage: Initial sale, refurbishment, property management, and resale. We’re a one-stop shop for overseas investors who want the real estate investment - but without the headache.”

Condo sales are currently slowing as Orlando condo inventory dwindles and prices begin to rise. To learn more about buying Orlando condo foreclosures and distressed condo inventory, call Condo Metropolis on: 407-290-3408 or email: Info@CondoMetropolis.com

“According to the news, real estate is still going to drop by 10% so I’m going to wait.”

I hear that a lot. And those folk are losing out big time right now - if it’s a condo they’re after. Because the truth is, if you want to buy an Orlando condo, you’re already too late for the best deals. Orlando condos hit bottom a long time ago – in 2010 in fact. So if you’re planning on waiting, you’re just going to pay more with every month that passes.

Remember, all real estate is local – and single family homes, villas, condos and townhomes are all different animals. There is no national picture - only regional markets, so if the messages on the early evening news speak to you, then you probably shouldn’t be investing your dollars in real estate.

In the third quarter of 2011, the condominium market continued on its path of fewer resales but higher values according to the tradegroup for Florida Realtors. The reason? More condo buyers chasing less condo inventory.

Association members sold total of 1,486 existing Orlando condo units in the third quarter, a 36 percent decline from the 2,333 sold in last year’s third quarter. But the median price of those condo sales grew to $59,000, an 18 percent jump from third-quarter 2010’s $49,900. In the second quarter, condo resales also were down while values were up.

The single-family home market, meanwhile, saw little change. A total of 6,846 homes resold in the third quarter, just 1 percent up from third-quarter 2010. Meanwhile, the median home price fell 2 percent for single-family homes, from $130,300 in third-quarter 2010 to $127,800 in this year’s third quarter. A very different picture.

For more information on the Orlando condo market and for assistance with buying or selling your condominium, call Condo Metropolis on: 407-290-3408 or email Sales@CondoMetroplis.com