Thursday, July 3, 2008
Licensed to Make Money
Many people dream of buying a really charming home in Key West with a pool that they can eventually retire to. But in the meantime they want to be able to rent the house to help make the mortgage payments. Sounds easy. It isn't.
The City of Key West has a transient rental license ordinance that prescribes how single family homes, condos, and town homes may be rented on a transient (daily) basis. The city fathers created a map of locations with existing transient licenses and carved those areas as being permissible. Individual properties that had a transient license were allowed to continue to rent on a transient basis. Residences in permissible areas may rent on a transient basis if they have a license. Residences without a transient license may not. Furthermore, you can't just go to the city to buy a license because they don't issue new ones. Some transient licenses are offered for sale from time to time in our mls. So having a single family home with a transient license, even if you do not want to rent the house that way, the license is a valuable asset to have for re-sale at a later date.
There are two houses interested buyers should consider. The first is a new listing at 1307 Royal Street. It is a really cute property that is loaded with options! The front house has 2 bedrooms and 2 baths, and is in exceptional condition with cathedral ceilings, a heated pool, roll down storm shutters, off street parking and a TRANSIENT license. The back house is a legal 1 bedroom 1 bath cottage which can become completely private and separated by a rolling fence. The property is priced at the June 2008 appraised price.
1307 Royal Street is a five block walk to Upper Duval. El Siboney Cuban Restaurant is located a couple of blocks to the east. The asking price on this property 1438 sq ft property is $1,200,000 or $834 per sq ft. CLICK HERE for additional detailed information and photos.
Then there is 523 Louisa Street. It is just a hop, skin, and a jump off of Upper Duval. It is offered furnished. CLICK HERE to preview this charming abode of 3 bedrooms, 2 baths with 1080 sq ft of living space. It is priced at $1,195,000 or $1,106 per sq ft. Great rental history on this cute story and one-half conch house renovated in 2000 with new roof in 2007. First floor contains open living/dining/kitchen with a bedroom and en-suite bath. Upstairs is two bedrooms with adjoining bath between. Small lagoon style, black bottom heated pool added in 2003. Turn-key property. Strong advanced bookings for buyer to start with immediate cash flow. CLICK HERE to checkout the rental company's listing page for Lousia. And CLICK HERE to preview the advanced bookings that Louisa has in place.
Now it is permissible to rent a single family home, condo, or town home as a legal vacation rental. Such properties may be rented only once per month whether it is for one day or thirty days. That is why having a home with a transient license might be the better investment. I encourage prospective buyers to look at the websites of property management companies like RENT KEY WEST and AT HOME IN KEY WEST. Do the math. You'll be surpirised how profitable owning a house with a transient rental license can be.
If you are looking to purchase home in Key West that you can rent to help make your dream come true, please call me, Gary Thomas, 305-766-2642, or e-mail me at firstname.lastname@example.org.
The information on this site is for discussion purposes only. Under no circumstances does this information constitute a recommendation to buy or sell securities, assets, real estate, or otherwise. Information has not been verified, is not guaranteed, and is subject to change.
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Gary Thomas in a Nutshell
- Gary Thomas
- Key West, Florida, United States
- I first read about Key West in a magazine called "After Dark" sometime in the mid 1970's. But it wasn't until March 1984 that I made my first visit to the island that would become my home. I had two weeks for a vacation and reserved a room at Colours Guesthouse (now Marrero's Guest House) for one week. I thought that if I didn't like Key West, I could always go back to Miami or Ft. Lauderdale for the rest of my trip. But after a couple of days in Key West, that was no longer a consideration. But when I wanted to extend my stay for the extra week I found there was no room at the inn. The guesthouse owner did find me a room at LaTeDa, the infamous guesthouse/restaurant. That's a story I'll write another day. But those two weeks in Key West gave me the realization that I had found Paradise. Key West has been my home since 1993 and my only regret is that it took me so long to get here. I am a full time Realtor at Preferred Properties CRI. Let me help you find your new home or business in Paradise. Living in Paradise is not a slogan, it's a way of life.