Real Estate Articles
The Importance Of Qualifying Tenants For Rentals
The importance of qualifying tenants for rentals can’t be overstated. In fact, this determines much about the next year (or whatever the term of the lease is set). When you own a rental property, it's necessary to vet potential tenants in order to minimize risk. After all, you are relying on these individuals to pay in a responsible and timely manner, in order for you to meet your obligations. Therefore, it is critical to know how important it is to qualify tenants for any rental property.
The importance of qualifying tenants for rentals is more than just about verifying income. There are other factors which are just as important as their demonstrable ability to pay, based on what they earn. (This is why savvy real estate property investors rely on professional property management teams, in order to handle the qualifying process and more, such as routine inspections, move in and move out cycles, as well as things like maintenance, repairs, and even evictions.) So, if you're new to real estate investing, you should know the following about the importance of qualifying tenants for rentals.
- Income verification. This obviously is the most fundamental thing you'll need to do, in order to ascertain the potential tenant's ability to pay their lease on time. Generally speaking, a tenant should earn at least three times the amount of the rental rate, but some property investors require a little more or just a slight amount less.
- Rental history. Of course, if the potential tenant has any rental history, you should know what it is and how those situations worked out. If the potential tenant does not have a rental history, meaning there is a first-time renter, you must usually rely on other qualifiers.
- Credit history. Here again, looking at the potential tenant credit history will reveal their level of responsibility to paying their bills on time. Of course, the higher the credit score and the longer their credit history the better. However, if it is very little to no real credit history, it's advisable to require a larger security deposit.
If you do not take the necessary steps to qualify potential tenants correctly, you're risking quite a lot financially. If the tenant isn't qualified and does not live up to their obligations, you must cover all the carry costs, including mortgage, insurance, property taxes, maintenance, repairs, replacements, and more. Then, there's the matter of legal fees and time and effort going into collections and even eviction. That's why it's so important to qualify tenants for rentals.
Vero Beach Recreation
Vero Beach recreation has something for everyone. Whether you prefer a nice casual encounter or want some excitement and fun under the sun, it's right here and ready to enjoy in Vero Beach. Known for its wonderful weather and warm water, this community has more to offer than just sandy beach lines. In fact, there's a lot to see and do in and around Vero Beach, some of it might even surprise you. so, read on to learn more about the recreational opportunities in Vero Beach and its surrounding communities.
About Vero Beach
Located on the East coast of the Sunshine State peninsula, Vero Beach is one of the affordable places to call home. most of the community resides on the mainland peninsula, while the rest of it is situated on a barrier island that runs between the Indian River Lagoon on the west and the Atlantic Ocean to the east.
Although it's namesake is its main attraction, there's a lot more to this area than sand and surf. so, let's take a look at some of the top recreational activities in and around Vero Beach:
- Downtown activities. Here's something that surprises people -- Vero Beach has a unique downtown area that includes niche boutiques, quaint eateries, retail shops, and most of them are listed on the National Register of Historic Places.
- Hit the links or the court. For those who like golf or tennis, Vero Beach delivers with no fewer than three of each. Of course, being in Florida, there are many more golf courses and tennis courts in the surrounding communities.
- Get out on the beach. Obviously, Vero Beach is known for its beach. And there's no denying it's a lot of fun to spend the day out in the sand and surf.
- Take to the waves. If you prefer a bit more adventure, there's always powerboating, sailing, parasailing, fishing, snorkeling, scuba diving, and much more to experience out on the water.
- Visit the McKee Botanical Garden. There's an expansive 18 acres of gorgeous landscape to explore here and it's a wonderful way to spend an afternoon or even a quiet evening.
- Experience some arts and culture. If you like arts and culture, Vero Beach also delivers, with the Vero Beach museum of art, Indian River citrus museum, Indian River historical society, and the Halstrom house pineapple plantation, just to name a few.
As you can plainly see, Vero Beach truly does have something for everyone.
Tips on Furnishing a Vacation Rental in Vero Beach Florida
Tips on furnishing a vacation rental in Vero Beach Florida can make a huge difference in how often it’s booked and how much you can charge. In fact, furnishing any space, be it for rent or sale, will pretty much be the determining factor about its overall performance. Read on to learn some helpful tips about how to furnish a vacation rental in Vero Beach and beyond.
Furnishing a vacation rental is much different than furnishing a long-term rental property. (Like those leased for years by the same tenant.) The reason is that their purposes are completely different. In other words, one is short-term with a totally different backdrop, while the other is a long-term proposition. So, here are some effective ways to furnish a vacation rental in Vero Beach Florida:
- Use multi-purpose furniture. This is key to making it more functional, as well as having the added benefit of saving precious space. Furniture that serves more than one purpose will be greatly appreciated. And, it will help to free up space, making rooms appear larger and more luxurious.
- Go with strong, durable furnishings. The furniture should not only have more than one use, but it should also be the most durable. All rentals, whether short or long term, undergo wear and tear. When there’s repeated resident turnover, that will necessarily mean more usage. Plus, accidents do happen and furniture that can withstand more offers a better return on investment.
- Choose a good theme and stick with it. Since it’s in Vero Beach go with a maritime and/or beach theme. And, make it consistent throughout the rental property. Don’t make the mistake of trying to interweave different themes because it won’t be appealing to potential renters.
- Stick with the “less is more” philosophy. Also, be sure to adopt the “less is more” mentality when it comes to furnishing any type of rental space. This not only helps to cut down on cost. But it also makes the rooms look a bit bigger.
- Be sure to stock the essentials in every room. The kitchen and bathrooms should have the appropriate, daily supplies readily available. The bedrooms should have more than one set of bedding.
As you can see, it’s not terribly difficult to furnish a vacation rental. But, it is something you have to do with forethought and planning in order to make it as appealing as possible.
Vero Beach Schools
Vero Beach schools include public schools, private schools, and even charter schools. So, that means there’s plenty of choices, something for just about any family considering relocating to Vero Beach or those searching out new neighborhoods. Read on to learn more Vero Beach schools and what you need to know about them and the area itself, as well.
Vero Beach boasts some of the best schools in the region. Right now, there are over fifty preschool programs, almost thirty elementary schools, about eighteen middle schools, and a total of twelve high schools. Plus, there are sixty private schools in and around Vero Beach, with four charter schools.
About Vero Beach
Vero Beach is located in central east Florida, on the coast of the peninsula, and across the Indian River Lagoon. On the east side is the Atlantic Ocean, making a portion of it a barrier island. First settled in 1870, Vero Beach incorporated in 1919 originally and then again in 1925.
Vero Beach is a small town in the Sunshine State and one of its most desirable areas in South Beach Park. Just outside the community is the McKee Botanical Garden and Pelican Island National Wildlife Refuge. Vero Beach has a population of about 17,200+ residents and spans just 13.34 square miles.
Vero Beach Schools Stats
Among the most popular and best-performing schools in the area is St. Peter's Academy, Liberty Magnet School, Rosewood Magnet School, Osceola Magnet School, and North County Charter School.
One important point to note is that of all the schools located in the town of Vero Beach, only a handful of schools are actually on the barrier island. (The vast majority of schools in Vero Beach are located on the mainland peninsula.)
Fortunately, most of the schools in and around Vero Beach have relatively small teacher to student ratios. (Of course, this depends on the neighborhoods but most have a good student to teacher ratio.)
Currently, there are just two facilities of higher education in Vero Beach, those being the Mueller Campus of Indian River State College and Treasure Coast Technical College.
Presently, the public schools in Vero Beach are operated by the Indian River County School District, which serves approximately fifteen schools in the city. Meanwhile, the private schools include Saint Edward's School, St. Helen Catholic School, Anderson Academy, Masters Academy, Tabernacle Christian School, and SunCoast School. Charter schools include Indian River Charter High School, Imagine South Vero, North County Charter Elementary, and St. Peter's Academy.
Tax Advantages of Owning a Long Term Rental
The tax advantages of owning a long term rental can mean the difference between making a good investment and making a bad financial decision. What can make the difference is understanding what you can and cannot take advantage of, in taxes, as well as other financial factors? Read on to learn about the tax benefits of owning a long-term rental property.
The tax advantages of owning a long term rental can make a huge difference between something that is profitable and something that will cost you a financial loss. Therefore, it is very important to know what you're getting into before you make such a large commitment.
Although long term rental properties, and even short term rental homes, can generate a nice passive income stream, not understanding the financial fundamentals creates a very dangerous set of circumstances. In other words, if you do not know what to expect, and temper forecasts with realistic expectations, you're only setting yourself up for trouble. So, let's get into the upside of using the tax laws to your advantage when it comes to long term rental property.
- Deductions. Most carry costs, including routine maintenance, repairs, replacements, and upgrades, can be written off on your taxes. That's a huge benefit and one that helps to make investing in long-term rentals a sound investment.
- Depreciation. You can also depreciate your property on a scheduled basis, over time. This effectively helps to lower your tax burden and make it a more profitable asset.
- Appreciation. Another benefit of owning a long-term rental property is the fact that it will appreciate over time, becoming more valuable, adding to your net worth. as you amortize the mortgage, the appreciation grows larger and larger, okay, making it more lucrative.
- Leverage. You can also use your long-term rental property as leverage to acquire more rentals in the future, in order to build up your real estate investment portfolio.
- Income tax. If you invest in a rental property in a state like Florida and reside in that same state, you don't have to worry about extra income taxes, because some states, like Florida, do not have a state income tax.
- Property tax. Depending on the location, the property tax rate might be relatively low, giving you a little bit more room in your profit margin.
Of course, you should always consult an experienced, licensed tax professional in order to obtain the most sound and lucrative advice.
Advantages of Owning a Vacation Rental in Vero Beach
The advantages of owning a vacation rental in Vero Beach are so compelling, many people who consider the idea wonder why they waited so long before moving ahead. In fact, the benefits are so good, that it's difficult to think of reasons not to make the move. The key is knowing and understanding how and why. So, let's take a look at the biggest benefits of owning a vacation rental property in Vero Beach Florida.
The advantages of owning a vacation rental in Vero Beach Stars by fulfilling one fundamental and important demand -- location, location, location. Although this maxim has become somewhat of a cliche, it is inescapably true.
Take any ordinary, residential house, out of any ordinary, landlocked neighborhood, and put it near or on the beach oh, and its value skyrockets. But, this is just one aspect of how strong and investment a vacation rental is in a place like Vero Beach. Better yet, there are even more, like the following:
- It's a real asset. The vast majority of people who are wealthy gained their station in life through smart investing, including real estate. Because of its highly desirable location, it will appreciate at a greater rate and retain a larger amount of value. Which means, it can later be used as collateral for future real estate investments.
- There are tax benefits. Owning a vacation rental house means that you are able to write off many of its carry costs, including insurance, maintenance, replacements, repairs, and much more. Plus, if you make the smart move of hiring a property management company, you'll be able to deduct that cost as well.
- A passive income stream. a vacation rental, by its very nature, creates a passive flow of income. Plus, you get to keep even more, especially if you're a resident of the Sunshine State because there is no state income tax.
- A home away from home. Another huge benefit is the fact it can serve as a dedicated getaway, whenever desired. You don't have to scramble to find costly accommodations or try to pigeonhole a few days or weeks. Instead, you can simply pick up and go and enjoy the terrific weather.
Speaking of weather, that's another big benefit. Here in Vero Beach, the spring and fall seasons are irresistibly delightful, summers are warm, and winners are super mild. Moreover, given its location, it means that you'll easily be able to lease it out, on a short-term or long-term basis, or a combination of the two.
As you can clearly see, there are many big advantages to owning a vacation rental property in Vero Beach Florida. Better yet, the timing is right, right now.
Advantages of Using a Real Estate Team to Manage Your Rental
There are several big advantages of using a real estate team to manage your rental. When you have a dedicated crew to manage your rental property, you receive a number of benefits.
Seasoned real estate investors routinely rely on property management teams for their rental properties for good reason. Although there is an expense involved, the return-on-investment makes it more than worthwhile in the long run. Read on to learn more about the benefits of using a real estate team to manage your rental.
The advantages of using a real estate management firm for rental property starts with a very simple and undeniable premise -- you as the owner can't do it all on your own.
In fact, experience real estate investors learn very early on in their journey that it's a lot more work, requiring substantial amounts of time and effort, to manage even a single property, just around the corner. When multiplied or scaled up to two, three, or more rentals, it simply becomes overwhelming. Here are the biggest benefits of using a real estate team to manage your rental properties:
- Experience. This is especially important if you're new to property investing. Having an experienced team of professionals that know what they're doing is invaluable. They'll help you avoid rookie mistakes that can be very costly.
- Logistics. As everyone knows, it's impossible for one person to be in multiple locations at once. But, that's often a stark reality when it comes to managing rental properties. There will be times when it's just not feasible for one person to handle everything that needs immediate attention. When you have a team, it's possible to pull off these otherwise unachievable feats.
- The good, the bad, and the ugly. While every property investor relishes the thoughts of checks pouring in from tenants, the day-to-day reality is usually different. This isn't to say that every renter will pay late, but it happens more often than you might believe. This, not to mention the fact that your rental payment can be sizably cut down when emergencies arise and there's a need for a deep discount. For instance, if there is a mold issue in the kitchen, and it needs remediation and calls for remodeling, you'll have to discount the rate. then, there's the unpleasantness of dealing with evictions. These latter scenarios are something that a real estate team can manage so you don't have to.
Indian River County Florida Market Forecast
The Indian River County residential real estate market forecast has some good news in store for buyers and sellers alike. Currently, the Indian River County residential real estate market favors sellers over buyers and is considered a sellers’ market at this time. However, estimates for the next twelve months predict the market will slow and this will help to bring down home prices, helping out buyers. It's also good news for sellers, as the market will avoid overheating and stalling, or worse, entering into a bubble. Read on to learn more about the Indian River County residential real estate market for 2020.
The Indian River County residential real estate market is a very active one, although current trends display a curious mixture of figures. For instance, even though it is considered a seller's market, homes listed for sale stay available for a longer average. Of time than in similar counties in the Sunshine State. Another oddity is the difference between the median list or asking price and the median sales price.
Located on the east coast of the Florida peninsula bordering the Atlantic Ocean, Indian River County has a population of nearly a hundred and forty thousand residents. Although relatively small, it is ranked the 7th richest county per capita in the Sunshine State, and the 87th most wealthy in the country. It's located on what's known as the Treasure Coast, so named due to the many shipwrecks in the waters, carrying valuable freight, such as precious metals.
Currently, the median home value in Indian River County stands at $228,500, with residential values have increased by 0.3 percent over the course of the past year. Real estate industry experts and economists alike predict that home values in Indian River County will continue to rise over the course of the next 12 months by a larger margin of 1 percent.
At this time, the median list price for residential properties in Indian River County stands at $299,900. Meanwhile, the median sales price is $226,809. Presently, the average time a house stays on the market is 111 days, constituting a longer average DOM figure than similar locations also in a seller's market.
Right now, the number of houses with negative equity in Indian River County stands at 5.1 percent, compared to the national average of 8.6 percent. Meanwhile, just 0.8 percent of homeowners in the area are delinquent in their mortgages.
Health Benefits of Living in Vero Beach
The health benefits of living in Vero Beach are just far too numerous to list. But, there are most definitely some key advantages to know about. When it comes to the health benefits of living in Vero Beach, the weather and climate have much to do with its lifestyle. Then, there are other factors that come into play. Read on to learn about the top health benefits of living in Vero Beach.
The health benefits of living in Vero Beach mostly center around its location. Which is to say its wonderful climate and great weather. But, there are other elements that make Vero Beach a more healthy place to live.
Located on the east coast of the Florida peninsula around the central portion of the state, Vero Beach is 1 of the smaller towns in the area. However, it still possesses all the modern amenities and has a lot to offer. For instance, there is plenty of natural beauty in scenery to enjoy, but it also post-civil entertainment spots, including live entertainment and an active nightlife. Here are some of the biggest health advantages to living in Vero Beach:
- The weather. Many people don't often think about whether as being a contributor to a healthy lifestyle -- but it most certainly can be and more. For instance, there's no suffering from a seasonal affective disorder or the winter blues, precisely because there are no traditional winter conditions through the months of December, January, and February. Here's another key -- the weather plays an important role in health -- it's possible to get outside and be active almost every day of the year.
- Plenty of outdoor recreation. Speaking of getting outside and staying active, there simply is no shortage of outdoor recreation in Vero Beach. It's possible to run, hike, bike, swim, fish, golf, play tennis and volleyball, or just walk through a park.
- Many things to do inside, as well. Though there are relatively few rainy days, there are still several options for staying active when the outdoor conditions just aren't welcoming. Of course, there are a number of indoor recreation options, including basketball, pickleball, volleyball, as well as workout centers and gyms.
- No big city stress to endure, day after day. Another way Vero Beach lends itself to a healthy lifestyle is the fact it's a small, laid-back community. Which means there's no big city stress to suffer on a day-to-day basis.
As you can see, there are more than enough high-quality health benefits to living in Vero Beach.
Vero Beach Cost of Living 2020
The Vero Beach cost of living is an affordable one. In fact, it’s one of the best places to live in Florida and is much less expensive than in other locations.
First settled in 1870 and later incorporated as a city in 1919 and then later reincorporated again in 1925 to include “beach” in the name, it spans just over 13.3 square miles in size, with a population of a little over 17,000 residents. It’s also relatively inexpensive in day to day living expenses, as well as housing. Read on to learn more about the Vero Beach cost of living in 2020.
The Vero Beach cost of living in 2020 will remain much unchanged from this year to the next. Although small inflation pressures might inch up the costs of goods and services, Vero Beach continues to offer a relatively low-cost community in which to live.
Situated along the east coast on the southern portion of the central part of the peninsula, Vero Beach faces the Atlantic Ocean, separated by a barrier island between the Indian River Lagoon. It’s home to South Beach Park and just outside the community is the McKee Botanical Garden and the Pelican Island National Wildlife Refuge.
It boasts some wonderful stretch of beaches and, of course, has great weather, as well. Now, let’s take a look at the cost of living in Vero Beach. We’ll use 100 as a baseline for the national average to make comparisons:
- Transportation. The cost of getting around Vero Beach scores an 87, whereas the national average is 100 and the state comes in at just a tad over 112.
- Housing. Here’s where Vero Beach really stands out, scoring a 91 in affordability, while the statewide number is higher at 103. The median home cost in Vero Beach is $211,000, while the state figure is $237,100, and the national median is $231,200.
- Healthcare. The cost of healthcare comes in at 95 in Vero Beach, which is also lower than the state and national numbers.
- Utilities. The cost of utilities in Vero Beach scores a 96, with the state figure being 101.
- Miscellaneous. For odds and ends, Vero Beach scores 102, slightly above the national number.
- Groceries. The cost of food in Vero Beach comes in at 106, which is only a tad above the state’s score of 103.
As you can see, the cost of living in Vero Beach is quite affordable.
Vero Beach Real Estate Market Forecast for 2020
The Vero Beach residential real estate forecast for the year 2020 looks to be a good one. In fact, if trends continue, it should prove to be a great community for both buyers and sellers alike. Read on to learn more about the Vero Beach Florida residential real estate forecast for 2020 and what 2 likely expect in the new year.
The Vero Beach real estate forecast for the coming year will only depend on the recent cut in home mortgage interest rates. This is due to the fact that it's largely been a seller's market over the course of the past year. in fact, home values have risen by approximately 2.2 percent over the past 12 months, with experts predicting that home values will rise by approximately 2.6 percent over the course of the next year in 2020.
Vero Beach Real Estate Market Statistics
At this time, the average home value in Vero Beach is just a tad over $214,000. And, the average listing price is $282,000, with a median sales price being just a bit under $222,000. Meanwhile, the median list price per square foot in Vero Beach is $154.
Currently, the DOM or days on the market, stand at 108 days, on average, coming in at approximately three and a half months.
Even though the local residential real estate market in Vero Beach favors sellers at this time, sustaining the trend will be difficult going into next year, particularly after the selling season next spring.
When the market comes to this juncture, it's common to cool off and develop more parity between buyers and sellers, with fewer properties going on to the market and fewer active buyers out to purchase houses.
Presently, there is only 0.7 percent of homes in the Vero Beach area which are categorized as delinquent in their mortgage payments. Another 5.2 percent of homeowners faced negative equity situations, being underwater on their mortgages at this time.
Therefore, there are few distressed properties on the market, which include short sale properties and foreclosures. These figures are not likely to change much in the coming year, not playing a significant role in 2020.
Because of the above data an ongoing trends it's probable 2020 will have a good year for the residential real estate market in Vero Beach. This all means now is a good time to buy into the Vero Beach residential real estate market or sell, particularly in the coming year.
The Importance of Using a Seasoned Real Estate Agent to Buy or Sell
Buying or selling real estate involves a lot more than most people suppose, even if you’ve done it once before. You’ll have many responsibilities and once you’ve entered into a purchase agreement, you’ll be bound by a legal contract.
What this means, contingencies aside is that you can’t simply back out of the deal if you change your mind. If you’re a buyer, you’ll lose your earnest money deposit at the very least. If you’re a seller, you’ll hurt your chances of selling to someone else because you’ll have a reputation for not being committed. In the worst-case scenario, you’ll be in legal jeopardy because of specific performance, which can cause a lawsuit.
The Importance of Using a Seasoned Real Estate Agent to Buy or Sell
Whether you’re buying or selling real estate, you should not go it alone. There are just too many possibilities of problems arising if you wing it. Here are the top reasons you ought to have a seasoned real estate professional on your side when you buy or sell a home:
1. Knows the ins-and-outs of real estate transactions. There are many aspects of buying and selling real estate. You must comply with certain parts of the sales contract. Knowing the process is a huge advantage and being able to identify problems before the pop-up will be very helpful.
2. I can advise you on decision making. Unless you study the local market trends on a regular basis, you likely won’t know the real value of the property. This means you could price it too high when selling or submit a lowball offer that gets rejected and sold to another buyer.
3. Has a track record of successful transactions. You might not know it, but there are far more botched transactions in real estate than you probably think. In many instances, it’s either the buyer or seller who is responsible for a deal going south. A seasoned professional knows how to navigate the process.
4. I will negotiate on your behalf. Speaking of navigating the process, you’ll need someone that’s negotiated many real estate deals before to get the best result. If you want the best price, you shouldn’t go it alone.
Last but certainly not least, you simply don’t know what you don’t know, and, it’s often the case that what you don’t know can cause you the most in the way of money, stress, and time. Buying or selling a home