Condo Hunting in SouthWest Florida: Considerations Before You Buy

You're on vacation in Fort Myers (or Naples orfees. The HOA fee covers insurance for the
Cape Coral or Sanibel) and you fall in love withstructures, grounds keeping, water, sewer, trash
SouthWest Florida. You know you'll come back toremove, cable TV, and management. Larger
explore all the things you did not see the firstcommunities might have multiple subdivisions, in
time and to revisit your favorite spots. You andwhich case the subdivision association charges the
your partner are paying $325 per night for yourHOA fees and there is in addition a Master HOA
350 square foot room and the couple you arefee that covers the common grounds and
traveling with is paying the same ($4550 perservices for all subdivisions, such as guarded
couple for a two week stay).entrance, entryway landscaping, and clubhouses.
While on the beach or the golf course, you strikeGenerally, HOA fees are reasonable and equate
up conversations with several people and youwith what you would pay if hiring the services
learn that they live "up north" (undoubtedly youindependently.
meet Minnesotans and Michiganders), they visit 2Leasing Policies
or 3 times every year, and they own vacationMost condo associations have a rental policy
condos in the area.dictating how often (or if at all) you can place
The 3 R'spaying tenants into your unit. These policies have
So you talk it over and decide to start exploringtwo parts: maximum number of leases per year
the idea of purchasing a vacation condo inand minimum days lease.
SouthWest Florida. Why not, after all, combine theFor example, a "4-90" policy means you can lease
best of all worlds: Rest, Recreation, and Return onthe unit 4 times per year and the minimum lease
investment? Why give the money to someonemust be 90 days. The 4-90 or similarly restrictive
else when you could be helping yourself with anpolicies are good for semi-permanent or
investment and be vacationing in the comfort ofpermanent resident owners who do not want to
your own home? And how about that differencebe in a community with turnover in tenants.
in space and convenience? A two bedroom, twoPerhaps the most common rental policy is 12-30,
bath condo with a full kitchen, lanai, and greatmeaning 12 times per year, minimum of 30 days.
view is quite a bit more comfortable than a tinyIt is not difficult to find seasonal renters who will
hotel room with a 2 cup coffee maker. It makesstay for a month or more. The 12-30 policy is
sense, you think you're quite brilliant, and so youmost flexible, especially if you are counting on
dive into the search.rental income to offset expenses.
It sounds simple at first, but alas you soonAlso available, but less common, are condos with
discover there are so many factors involved.weekly or bi-weekly rental periods allowed. Finally,
Buying a vacation condo--even for experiencedthere are "condo-hotels" that allow nightly rentals.
buyers--can be a bit overwhelming at first. WhatCondo-hotels typically have on-site rental
location is best? Beach? Golf? Boating? Whatmanagement and are operated just like a hotel:
features are most important to you? What aboutreservation desk and staff, daily cleaning
condominium fees and policies? Can you rent outschedules, bell hops, and similar. (If you consider a
the condo when you are not using it? Can youcondo-hotel and plan to finance the purchase, bear
bring Sparky the family dog?in mind that most lenders consider the property
Location, Amenities, View, and Priceuniquely and so you will need to shop for a lender
The first step is determining which type of viewthat has a condo-hotel or investor program.)
and location is the priority for you. You canProperty Management & Rates
always drive to the beach or a golf course or aIn SouthWest Florida, property management
marina or boat ramp or shopping center orfirms that handle seasonal rental units are plentiful.
amusement park. If your priority is beach,The choice of firm primarily depends on the
sunsets, and expansive water views you'll be inlocation of your property--firms specialize in
the category of beach condo buyer. You ofregions (Cape Coral, Punta Gorda, Fort Myers
course still go boating or golfing, it's just that theBeach, Sanibel) or communities, such as Gulf
boat is not in your backyard or the golf course isHarbor, The Landings, and Burnt Store Marina.
not in your front yard. Likewise, if you are an avidProperty management firms that have
boater or angler, but just a casual golfer, thenconnections with European customers are ideal, as
your priority is a waterfront property on a canalthey can also find renters during summer off
or in a community with marina facilities.season. During summer months, there are many
To keep it simple, let's generalize threetourists from Europe (particularly Germany and
classifications of condominium properties:Great Britain), extending the rental revenue
- Planned gated communities: There are manyopportunity beyond the typical "high season" of
gated communities that offer a wonderful blendDecember through May.
of all the amenities many condo shoppers areAn additional factor is how hands-on you want to
looking for: golf, tennis, clubhouse, fitness rooms,be in the rental process. Absentee owners often
walking trails, and the like. These communities areprefer to let the property manager do everything:
a mixture of single-family homes, villas, andmarketing and advertising, collecting security
condos. Some also have marinas, boat storage,deposits and payments, getting contracts signed,
and on-premise restaurants. In this category,checking the tenant in and out, paying operating
properties on the waterfront will have views ofbills, arranging cleaning, and handling minor repairs.
the Caloosahatchee River, Charlotte Harbor, or aFees vary according to the level of service and
large lake-like saltwater basin.type of contract (such as whether or not the
- High-rises: In SouthWest Florida, the majority ofagreement is exclusive or not). Figure a minimum
high-rise condo towers are found in downtownof 10% of the gross rent for weekly and
Fort Myers along the Caloosahatchee River andmonthly rentals and up to 45% of gross rent for
on the beaches of the Gulf of Mexico (Fort Myerscondo-hotels.
Beach, Bonita Beach, Naples). Additionally, somePools, Furnishings, Pets, and Restrictions
gated communities have high rises among other- Pools: Nearly all condo complexes have a
property types. Examples are Tarpon Point andcommunity pool (if not several pools). Some also
Cape Harbour in Cape Coral, Gulf Harbour andhave common outdoor dining areas, tiki huts,
Mastique in Fort Myers, and Burnt Store Marina onshuffle-board courts, and fishing piers.
the Charlotte Harbour.- Furnishings: Condos or homes that are currently
- Smaller condo complexes: Smaller complexes,being seasonally rented sometimes sold furnished,
say 8 to 100 total residences and 3-5 stories high,either "turnkey" (furniture, electronics, linens,
are available in centrally-located areas such asdinnerware, and cookware), fully furnished, or
central Fort Myers, along the waterfront (canals,partially furnished (varies as specified in the
the Caloosahatchee River, and the Gulf of Mexico)contract).
and are common on Sanibel and Captiva islands.- Housing for older persons: As in other metro
There are also small waterfront complexes onareas, some condo associations are designated
canal systems, often with boat docks for use by55+ communities, although those are becoming
residents or their tenants. On the beaches, theremore rare. (Be careful if an agent or association
are corporate-owned condo-hotels and smallmanager tells you that you can get in "early" if
owner-association operated condo-hotels. Price isyou are under 55, as often the by-laws will not
of course a key consideration and will play aallow that, no matter what you are told.)
factor in the location, view, and amenity options- Pet policies: If you want to bring Sparky, be
from which you have to choose. There are verysure to check the pet policy in the association
nice options in the $200,000 - $400,000 range.documents. Policies are usually: no pets allowed,
The majority of options are in the $400,000 -limits (a weight or height limit), or anything goes.
$600,000 range. Luxury condos range fromSome associations allow owners to have pets, but
$700,000 to $4 million, plus.not their tenants.
Boating & The Gulf of Mexico- Condo doc review: As a protection for buyers,
For boaters there are several considerations withFlorida law requires that sellers deliver current
respect to the boating and water access. Planned,documents and financial statements to buyers
gated communities with marinas offer slips foronce a purchase contract is signed. A buyer has 3
rent or for sale, often both wet and dry (rackbusiness days from receipt of documents to
storage) slips. Rental rates average $12 per foot,review association by-laws and can rescind an
per month.offer if the rules and regulations or the
Condo complexes situated on canals have dockassociation's finances are unsatisfactory to the
space available one of three ways: deeded, wherebuyer.
the dock space is legally attached to the condoIs a Vacation Condo Right For You?
unit, assigned space (assigned to the unit), andIf you and your family like the area enough to
common space (space is not assigned or deededvacation here year after year, you are interested
to any units). The ideal scenario for conveniencein making a real estate investment, and you are in
of the owner and future value is a deeded dock.the financial position to do so, then buying a
But common dock space is okay too, and rarelyvacation condo is a good idea. You get to
are these docks full, meaning that dock space anyvacation in the comfort of your own condo and
time of the year is not likely be an issue for thecommunity, make long-term friends with fellow
residents of the complex.repeat vacationers, and you have a "perk" to
Golf Communitiesoffer friends, family, co-workers, and clients.
If your priority is golfing, it will be no surprise thatRemember that $4550 you were paying for a
there are many golf communities in the area. Intwo week stay? Think of that money as now
fact SouthWest Florida boasts the most golfgoing toward your investment. If you decide to
holes per capita that anywhere else in the nation.lease the unit, you have the added advantage of
Some golfing communities surround semi-privateoffsetting expenses with rental income. Assuming
or public courses. Others are entirely private andyou did not over-pay and that you hold onto the
offer equity golf membership, sports membershipproperty for at least a few years, your
(tennis, fitness, swimming), or social memberships.investment will appreciate and provide returns
Most common are "bundled" golf communities,down the road should you decide to sell.
where the golf membership is included with title toAnd last but not least, you get the bragging rights.
the property and residents pay an annualWhich would you rather say to that pompous
membership fee ($1700 - $4000).person at the fitness club: "We're staying at a
Association Feeshotel in Florida," or "We're going to our condo in
There are two types of association fees: HOAFlorida..."?
(Home Owners Association) fees and Master HOA