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Property Management Blog

Go The Distance Caballero Pushes Long-Term Rentals

Jaime Caballero - Thursday, December 15, 2016

By Terry Shmida

Key West real estate broker and property manager Jaime Caballero has a message for her colleagues: Please educate clients on the benefits of renting their properties for the long term, rather than as vacation rentals.

Caballero, who was born and raised in the Southernmost City, is the president-elect of the Florida chapter of the National Association of Residential Property Managers, and a board member of the Key West Association of Realtors.

It is in her capacity as a licensed real estate broker with Key West Residential Property Management that Caballero, who has been involved in property management since 1989, is hoping to convince other property managers, real estate agents, and investment property purchasers themselves to consider the benefits of longer term rentals to themselves – and the town in general.

“First of all, let me be clear, I’m not trying to reach those people who own or manage properties with transient rental licenses,” she said. “Nobody should ever give up a nightly rental to long term rental. What I’m concerned about is the growing number of non transient short-term rentals. There’s a shortage of housing here. And what’s been happening a lot lately is that homebuyers, sometimes on the advice of the agent that sold them their property, are renting it out by the month as a vacation rental, for a few months of the year, during season, rather than seeking annual long-term tenants. That practice may bring in higher monthly income for those three or so months, but leaves the owner in the position of taking their chances on finding more short-term tenants during the slower months, or only being able to offer a potential long-term tenant a nine month rental.”

The former problem, that of finding short-term tenants outside of tourist season, is a problem for the homeowner. The latter issue, that of the lack of full-year rentals, is undermining her hometown, Caballero said.

“I’ve spoken to people in the military and the service industry who are moving here and can’t find a landlord willing to rent them a home or apartment year-round,” Caballero said. “That leaves them unable to find somewhere to live because they don’t want to have to move after nine months. These people are our city’s workforce. Ultimately it’s not good for any of us to be in this situation.”

Besides the peace of mind and more money that lower but steadier long-term rent collection can bring to residential property owners, there is another benefit, according to Caballero: Lower commissions payable to property managers such as herself, since long term commissions are lower than vacation rental commissions. “You don’t have an expense of utilities while the property isn’t being rented,” she said. “Obviously, paying fewer expenses and making more income is a better way for property owners to go.”

Caballero worked for the Spottswood Family Trust for 14 years, in accounting and property management. In 2003, she obtained her real estate license and went to work for Century 21 Prestige Realty Group for the next six years. Her portfolio consisted of 100 or so properties that were a mixture of long term rentals and vacation rentals.

In 2009, Caballero became a real estate broker and founded Key West Vacation Properties & Realty. Later that same year she opened Key West Housekeeping Services to better serve her clients.

In 2012 she opened Key West Residential Property Management in order to expand her long term property rental pool.

She can be reached at 305-296-6667, 305-797-5252, or at jaime@kwrpm.com and jaime@kwvpr.com

See Original Article

NARPM® PAC Raises Over $20,000 at Broker Owner

Web Admin - Monday, May 23, 2016
The NARPM Political Action Committee (NARPM® PAC) successfully raised over $20,000 during their first silent auction at the Broker Owner Retreat last April. The retreat was held in Las Vegas and garnered hundreds of attendees.

The Silent Auction Committee solicited donations from members and associate members during the event. Attendees at Broker Owner were able to bid on items such as consultation time with industry leaders, vacation rentals, educational software and other items. Proceeds to the PAC will be used to help out federal candidates who support the property management industry.

Congratulations to the silent auction committee:

Theresa Mull - GA
Jaime Caballero - FL
Claire Schwartz - FL
Kristi Malcom - GA
Rocky Germano - CO
Amanda Frazier - HI


NARPM® PAC is a voluntary, non-profit, unincorporated group registered with the Federal Elections Commission (FEC). Its goal is to help create a favorable Residential Property Management business climate by electing candidates who demonstrate support for the preservation of property rights and residential property management.
   
   

NARPM® PAC raises over $20,000 at Broker Owner

Web Admin - Saturday, May 21, 2016
The NARPM Political Action Committee (NARPM® PAC) successfully raised over $20,000 during their first silent auction at the Broker Owner Retreat last April. The retreat was held in Las Vegas and garnered hundreds of attendees. The Silent Auction Committee solicited donations from members and associate members during the event. Attendees at Broker Owner were able to bid on items such as consultation time with industry leaders, vacation rentals, educational software and other items. Proceeds to the PAC will be used to help out federal candidates who support the property management industry. Congratulations to the silent auction committee: Theresa Mull - GA Jaime Caballero - FL Claire Schwartz - FL Kristi Malcom - GA Rocky Germano - CO Amanda Frazier - HI NARPM® PAC is a voluntary, nonprofit, unincorporated group registered with the Federal Elections Commission (FEC). Its goal is to help create a favorable Residential Property Management business climate by electing candidates who demonstrate support for the preservation of property rights and residential property management.

KONK Life | Monroe County Affordable Workforce Housing Forum by Larry Blackburn

Web Admin - Monday, February 29, 2016

Jaime Caballero was on the affordable housing panel with city officials


KONK Life: Monroe County Affordable Workforce Housing Forum by Larry Blackburn &emdash;

KONK Life: Monroe County Affordable Workforce Housing Forum by Larry Blackburn &emdash;

Key West Homestead Exemption 101: What Florida Landlords Need to Know Before Claiming This

Web Admin - Thursday, June 18, 2015

Our topic today is the Homestead Exemption. You have probably seen a lot of buzz about this topic in the news lately, and so many people are confused about what they can and cannot do with a homestead. Anything I tell you now can be verified when you visit the Monroe County Property Appraiser’s page. Go to mcpafl.org to get all the information you need to make sure you are operating within the law. If you do something wrong, you can be arrested for claiming the homestead exemption while renting out your house.

5 Signs You Chose the Wrong Key West Property Management CompanyHere’s a basic summary of the rule: you can rent out your house when you use the homestead exemption, but you can only do it every other year. Additionally, you must occupy your house or have it vacant on January 1 of every single year.

So, if you are renting your property every year and collecting rent and also claiming a homestead exemption, you’ll risk a felony charge. You could be put in jail, and the minimum bond is $10,000. Please be safe and be smart when you want to rent out your property if you have homesteaded it.

For more information on this complicated matter, please contact us at Key West Residential Property Management , and we’d be happy to explain it further.

What License do you Need to Rent your Key West Home Legally?

Web Admin - Wednesday, June 10, 2015

Today, we’re talking about the licenses you need if you want to rent your property in Key West. What you need really depends on where your rental home is located.

If your property is located within the city limits of Key West, you will need two different licenses. The first one is issued by the city of Key West, and you will have to apply for it with the city government and pay a $20 fee. You also need a county license for Monroe County. You can obtain that at the Wilhelmina Harvey Government Center. That license will also cost you around $20. These are the two licenses you will need to rent out your property that’s in the city of Key West.

If you have a property that’s outside the city limits, from Stock Island to Sugarloaf, you only need a county license. Again, that 5 Signs You Chose the Wrong Key West Property Management Companycan be applied for at the Monroe County office. If you need help with your county license, we recommend talking to Danise Henriquez, the county tax collector. You can also download the city forms at cityofkeywest.com.

Please contact us at Key West Residential Property Management if you have any questions at all about obtaining the licenses that are required for rental properties

5 Signs You Chose the Wrong Key West Property Management Company

Web Admin - Friday, June 05, 2015

Today, we are sharing five signs that you might not have a great property management company. If you are dealing with any of these frustrating situations, you need to think about making a change.

Not Getting Paid

It’s not normal for landlords not to get paid in a consistent manner. At Key West Residential Property Management, we pay our owners between the 10th and 15th of every month. If your property manager tells you that you have to wait to get your check, it’s a sign that you don’t have a good one.

Lack of Communication

Not communicating when repairs and maintenance are needed on your property is a big problem. Anything over $200 should be discussed with you. Sometimes, the property owner just needs a phone call. You might know something special about your property that your manager doesn’t. It’s possible you’ve fixed the issue for $100 before, and there’s no need to send out an expensive vendor.

Bad Tenants

Another sign you chose the wrong property manager is that you’re getting bad tenants. Your property management company needs to do thorough background checks and conduct proper screening. You want the best possible tenants in your home.

Low Rental Price

If the rental price is too low, your property manager is not tuned into the rental market. A low rental price indicates they don’t know where rents are going and what they should be. Right now, tenants are paying a prime rate because there is an extreme demand for housing and no supply on long term rentals.

Property Management is a Side Business

These days, a lot of real estate agents are trying to be property managers. This is a problem because they don’t know the rental market or the Florida landlord tenant laws. Make sure you are working with a professional and reputable management 5 Signs You Chose the Wrong Key West Property Management Companycompany, and not someone who is treating this as a side business.

If you think you might be working with a bad management company and you’d like to talk about how we can do better, please contact us at Key West Residential Property Management.

Common Mistakes that Key West Landlords Make when Managing Their Investment Home

Web Admin - Friday, May 29, 2015

Today, we’re talking about common mistakes that self-managing rental property owners make.

  1. Not asking for first month’s rent, last month’s rent and a security deposit. Some owners think that all they need is a security deposit, but that’s not a good way to protect yourself.
  2. Not doing background checks. It’s very important to properly screen all tenants.
  3. Not raising the rent after the lease term is up. If a tenant is taking care of the property and paying rent on time, some owners will reward that tenant by leaving the rental rate in place. However, costs increase. Your tax bill and insurance will go up, so raise the rent at least $50 per month. That’s a perfectly customary increase.
  4. Not handling security deposits properly. If there’s damage to the property, you don’t want to simply deduct that amount from the security deposit and send the tenant a check. You have to follow the law and the regulations in the landlord tenant act. There is a complete process you need to follow; otherwise you’ll forfeit the right you have to withhold any money from the deposit. You need to make a claim notice.
  5. Not knowing common laws. Landlords can really put themselves in a position where the tenant can get an owner in trouble just because something wasn’t done properly.
  6. Not setting up a security deposit account. There has to be a separate account where the security deposit is held. You cannot allow it to mingle with other funds and you cannot spend it.
  7. Not issuing a Three Day Notice on the day after rent is due but hasn’t been paid. You want to collect rent promptly and not let your tenants get away with paying late or not at all.
  8. Not understanding the difference between a pet and a service animal. This is critical to managing your rental property and a lot of self-managers don’t know the difference.

Common Mistakes that Key West Landlords Make when Managing Their Investment HomeThese are some of the most common mistakes we see, and you want to avoid them. If you need any help, please don’t hesitate to contact us at Key West Residential Management Company.

Long Term Rentals vs. Vacation Rentals – Which Makes the Most Sense for My Home?

Web Admin - Thursday, May 21, 2015

I was recently reading the Citizen’s Voice section in the Key West Citizen, and I came across a comment from someone who thought renting a property out in the short term is a lot better than renting a long term property because when you rent short term to vacationers, the tenants sign a temporary contract and then move out when they’re supposed to. This person thought it was better to provide a vacation rental because he did not want to be in the position of having to kick out tenants who didn’t pay rent. He worried that if it was a family he was evicting, it would make him look bad.

Not wanting to be the bad guy is understandable, but it’s important to have all your facts when you’re trying to decide whether to have a long term rental or a vacation rental. You don’t want to choose a vacation rental over a long term rental if you’re going to count on that income every month. Long term rentals will give you 12 months of continual income. When you switch over to a vacation rental, you’ll normally be able to count on consistent income for January, February and March because those are the busiest months for local vacation rentals. But you don’t really know whether you’ll get continual rentals the rest of the year. You have to look at all the advantages and disadvantages.

When you have a vacation rental, you need to collect and submit sales tax. You also have to make sure you’re following the vacation rental rules. For example, with a non-transient rental, you have to rent it for 30-day periods.

Make sure you’re making the best decision based on your investment plans, and double check your current income situation. Right now, we are lucky. It’s a landlord’s market in the Key West area, and there isn’t a Long Term Rentals vs. Vacation Rentals – Which Makes the Most Sense for My Homelot of inventory out there. It will help out your community if you’re able to rent your home long term. And if you’re worried about your reputation and what you’ll have to do if you need to evict a family, use a professional management company to take care of these things for you. This will save you time and money and protect your investment.

Please contact us at Key West Residential Property Management if you need help exploring your options and making a decision.

What Does Property Management Cost in Key West?

Web Admin - Saturday, May 16, 2015

Today, our topic is how much you can expect to pay for professional property management services in the Key West area.

The going rate for property management commissions is around 10 percent of your monthly rent. Remember that you get what you pay for, especially in this industry. If you find someone who is charging less than 10 percent, you should be skeptical.

When you’re deciding whether you want to hire a professional manager or do self-management, remember that there’s a lot of liability to think about. You don’t want to put yourself in a situation where you’re not sure what the landlord tenant laws require. A professional will stay up to date on the laws and the regulations. For example, do you know the difference between a service animal and a companion animal? These are the types of details you need to know when you’re managing a property.

Another thing to consider is the emotional involvement. Will you be able to kick a tenant out of his property right after his dog died if he didn’t pay rent because he was using the Florida Landlord Education State of the 2015 Key West Rental Market keymoney for medical expenses on his pet? Emotions will come in, and you can’t do the good job you need to do in order to keep bringing in rental income.

There are a lot of people who think they can manage property on their own, but it’s very time consuming and it’s a big deal. If you want your life back and your time back, use a professional company that charges 10 percent or more. If it’s less, keep looking. The cost of professional management is well worth the services you receive.

If you have any questions or you’d like to hear more about professional property management services, please contact us at Key West Residential Property Management, and we’d be happy to talk to you.


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