One of the things that we often here are people interested in investing in condos in Florida. This can be appealing as there continues to be increased demand for vacation homes and primary residences in the sunbelt and the price of condos can be more affordable in Florida than purchasing a single family home. There are a number of things to consider and think about before you dive into investing in condos in Florida.
Condos are often more affordable and create a nice entry point to start with real estate investing in Florida. The benefits of having a condominium and condominium bylaws and rules and regulations can also be a nuisance. While you may not live in Florida but you want to invest in condos here, it can be helpful to have a management company coupled with a condo association who handles the common areas and the maintenance and upkeep of the common areas. The problem with this is that you are also bound by the rules in the declaration of condominium or the bylaws of the condominium. You need to make sure that the unit you are purchasing is even allowed to be rented. Can it be rented more than once a year? Can you rent immediately after purchasing the property.
Many Condominium Associations have restrictions on investing in condos in Florida. They don’t necessarily want investors in their condo association and they may not allow you to rent the property more than once a year. This can be a problem if your tenant moves out after 4 months because they have to relocate or have a death in the family. You may be stuck without any rent and having to cover the costs for the rest of the year awaiting your ability to rent it again.
Condos also often have neighbors upstairs or downstairs or next to your unit. Your tenants are your responsibility and if they are bothering others around them with noise or smells or pets or any nuisance, it becomes your problem. The association can enforce rules of condominium to fine your or force you to remove your tenant from the property. This can result in vacancy and headache. Often times the HOA rules are not kind and give the authority to the Condominium Association to send notice without warning demanding your tenants or their pet be removed from the property immediately.
Now these rules or condo bylaws can be convenient sometimes when you are living in the property and the person next to you is a nuisance but from an investor standpoint can be nothing but a headache. While you may like that you don’t have to worry about security or storm preparation or pool care, the trade off of the Condo Rules and Regulations and the board enforcing them may not be worth it. Investing in Condos in Florida can be lucrative and a nice option but its important to think about the possible problems and issues that can arise.
As a condo owner, you are sharing ownership and responsibility of the common areas and therefore are bound by the Condo Documents and the Condo Rules and Regulations of the Condo. Make sure you always read the bylaws and documents closely if you are planning on investing in condos in Florida because the devil is in the details and once you own it, you must abide by the rules. To search for the condominium documents you can search here. http://www.flcondodocs.com/Search
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