6 Common Sense Reasons Why You Should Never List Your Orlando Vacation Home For Sale With a Property Management Company
The purpose of this post is not to knock management companies as their are a few good apples out there however, it’s been my experience that property management companies should stick to what they do best and that’s managing vacation property. Here are some of the issues I’ve ran into with homes that are listed by property Orlando vacation home management companies that also have a real estate side.
1. Scheduling Conflicts: I’ve never had more issues trying to get into houses than I have with ones that are listed with Orlando area management companies. It’s inevitable for everyone that if your home is being actively booked there will be times it can not be shown however, the vacation home management companies I have had the pleasure of doing business with seemed much more concerned about the bookings than actually showing the home to prospective buyers. It seemed as though they only wanted to sell the home to their clients who were staying in it (they will make more money that way) than to expose the home to as many buyers as possible in order to get it sold quickly and for the best price. This is certainly not in the sellers best interest.
2. Not a Specialized Process: Yes many management companies have a real estate division however it is NOT their specialty. When it comes to selling an Orlando vacation home, marketing is one of the most important skills a real estate company/associate can possess. Aside from slapping an MLS print out of the property in their window and throwing the home up on their website (that doesn’t get any traffic anyway) I haven’t seen any vacation homes listed by Orlando management companies that are being marketed effectively, uniquely or heavily. A dentist and an orthodontist both work on teeth, however I’m not going to go to a dentist for braces I’m going to go to an Orthodontist.
3. Under-staffed: Wow, this has been a huge problem I have been running into when trying to sell Disney area vacation homes listed with Orlando management companies. Their operating hours are from 9am until 5pm Mon-Fri and if you call on the off hours you get a voice mail that won’t be checked until the next business day. When do you think most of your property showings and contracts will be coming in? It’s usually on the weekends or after 5pm and if your agent/broker is unavailable during those times you wont be hearing about any offers until it’s most likely expired. Take in consideration time differences as well if you are living in another country, by the time everyone gets on the same page the buyers have moved onto a different property.
4. Poor Marketing: This reiterates what I recently stated in number 2, due to the fact that 99% of Orlando management companies main source of income comes from the management end, they don’t dump too much time and money into their real estate marketing or train their agents how to market and sell Orlando vacation property. The property sales are a bonus for them and from what I have seen the listings get slapped into MLS and that’s about as much marketing as your going to get. Why would you want to pay a full service real estate commission for a half service job and wait even longer for your vacation home to sell? It sounds convenient at the time to just list with the company who is managing your Disney area vacation property however, this can be one of the most costly mistakes you can make when selling your home.
5. Ulterior Motives: Management companies are not trained to sell homes they are trained to book vacation stays. It’s the difference between hospitality management and business marketing. They are two completely different animals and therefore you run the risk of ending up with a Realtor who’s sole purpose in selling your home is to secure vacation home management with their company. If you have two buyers both placing offers on your home, Buyer A wants to use their management company after closing and Buyer B does not but buyer B is willing to pay more or offer better terms which offer do you think you’re going to hear about first? Though it is illegal to withhold offers from the seller, I have seen Realtors wait until after the one that was in their company’s favor was accepted and then present the higher offer afterward when it’s too late to accept it. I’m not saying they all do this but I have seen it happen and you always run the risk of this whenever there are ulterior motives with the agent (kickbacks, quotas etc).
6. Hard To Show : This has to be one of the most common reasons why it’s so complicated to sell properties listed with Orlando management companies. Many of them do not utilize the lock box system and insist on meeting you out at the property. This means you have to work within their restricted schedule. Most buyers that are buying real estate in the Orlando-Disney area do not live here and are only in town for a limited amount of time. I recently ran into a situation where there were two townhouses listed in a resort community that my buyers really wanted to see. They were only in town for 48 hours and for the sole purpose of finding a vacation property. The management company who had these townhouses listed was not able to reschedule their day or free up some time to meet us at the properties within that 48 time period. My clients did not see those town homes and purchased something else instead. Do you think the management company went back and reported that to the seller during their weekly feedback session? Probably not.
As you can see these are just some of the most common sense reasons why it does not make sense to list your property with a vacation home management company in the Kissimmee, Davenport or Clermont areas. It’s vital to the sales process to stick with a specialized firm who has a website with excellent Google placement, specialized marketing techniques, a steady flow of vacation home buyers and is specifically trained in the sales and marketing process for Disney area vacation homes.
What do you get when you mix crackheads with alligators? Probably nothing you would want to look at, especially at 3am . . . though this story is a few years old I still find it “What The Flock” worthy:
Original Story From: Click Orlando
Authorities said the Polk County Sheriff’s Office received multiple calls at about 3:30 a.m. Wednesday concerning screams for help coming from an area of Lake Parker County Park near the Moose Lodge on East Lake Parker Drive.
When officers arrived, they heard a Adrian Apgar in the lake screaming for help and saying he was being attacked by an alligator. The deputies dove into the alligator-infested waters and searched for the man, the police report said. Once the deputies found the victim, they were able to pull him from the alligator’s jaws and swim about 40 feet to shore. Apgar was transported to Lakeland Regional Medical Center in critical condition with an apparent broken arm, partially amputated left arm and major trauma to his leg. Wildlife officials said they were not surprised that the alligator attacked Apgar because 4 a.m. is prime feeding time, Local 6 News reported.
The Pink Flamingo Says:
1. Don’t Smoke Crack!
2. Don’t Smoke Crack Naked!!!
3. Don’t Smoke Crack Naked Near Alligator Infested Water at Prime Feeding Time!!!!!!!
I’m not one to talk about hype or anything like that but I felt compelled to write this post for those of you who may be considering purchasing a bank owned townhouse in Regal Palms but may be hesitating or waiting for prices to drop even more. I have spent the past two weeks showing property almost everyday in Regal Palms and the past year watching the Regal Palms pricing and market, I can finally say that now is the time to buy in Regal Palms. The bank owned properties are reaching all time lows in the 60K range. Most of the bank owned townhouses in Regal Palms that are coming on the market are the smaller floorplans (1400 sq ft) and they aren’t flying off the shelf (but are still selling). It’s the larger floorplans (1800-2000 sq ft) lock out units that are going under contract almost within days of being listed.
I just talked to the listing agent of one of the bank owned 2000 sq ft units in Regal Palms, I had a buyer who wanted to place an offer, and she said that before she could even get updated photos and market the listing online she has multiple offers on the property. It pretty much flew off the Regal Palms real estate shelf in a matter of 48 hours. The other 1800 sq ft lock out townhouse was gone within a few weeks and seemed to get multiple offers all at one time. When it rains it pours in Regal Palms. My advice to any buyers hesitating or waiting to put an offer in on a Regal Palms Townhouse is to strike while the iron is hot. These townhouses are a hot ticket right now, buyers are reacting to the the all time low prices and I predict than when summer comes and the real estate market in Davenport picks up that the Regal Palms bank owned inventory will start to clear out.
I don’t foresee prices dropping much more on the bottom end units that are alreadyi n the 60K range. I do think that some of the townhouses priced above $150,000 will be forced to reduce their pricetag over the next six months but I would be very surprised to see the lower priced twnhouses (Under 80K) drop anymore than they already have. It’s turning into a bidding warzone and buyers are acting. So if you’ve considered a Regal Palms purchase you may want to take advantage of the current low prices.
The criteria that was used to evaluate these homes as the best bank owned deals in Reunion was price, value, square footage and condition of the home. There are currently 24 bank owned properties in Reunion ranging in price from $129,000 up to $1,150,000 but only these six home were hand picked by the Flamingo so you can have first choice of the best bank owned Reunion Resort properties.
1. 7630 HERITAGE CROSSING WAY # 102
Sq Ft: 1344
Why it’s the Best Deal: This one is simple, it’s the cheapest bank owned condo in Reunion and it’s in great condition. The HOA fees are a bit steep at $422 per month but when you consider that the building insurance is covered in that it makes it a better value.
See Full Profile and Photos for 7630 HERITAGE CROSSING WAY # 102
Search All Reunion Condos For Sale
2. 837 ASSEMBLY CT
Sq Ft: 1686
Why it’s the Best Deal: This townhouse is a hot price for that square footage in Reunion. We love that it’s bank owned and the bank is ready to play ball on this one. The interior of the Reunion townhouse is very clean but it’s mostly carpeted in the living areas which I am not a fan of. At this price you can just rip up those ugly carpets and install tile.
See Full Profile and Pictures for 837 ASSEMBLY CT
See All Reunion Townhouses For Sale
3. 1409 FAIRVIEW CIR
Type: Single Family House
Sq Ft: 2296
Why it’s the Best Deal: It’s the best priced bank owned pool home in Reunion and surprisingly the interior of the home is not too shabby. It’s upgraded with tile and nicer appliances and for sitting vacant so long it’s in good shape. We like that it has two porches and lake views and quite frankly don’t understand why anyone would pay more for a non-bank owned home like this in Reunion when you can get this baby under $280,000.
See Full Profile and Pictures for 1409 FAIRVIEW CIR
See All Reunion Single Family Homes For Sale
4. 7412 DEVEREAUX ST
Type: Single Family House
Sq Ft: 2478
Why it’s the Best Deal: This home has bedrooms and we mean bedrooms! It has five to be exact and when considering using a Reunion Resort Home as a vacation rental you’re going to want bedrooms. You can maximize bookings with the extra space and create more booking potential. It also has a pool and a great floor plan making it perfect for not just bookings but a primary residence as well.
See Full Profile and Pictures for 7412 DEVEREAUX ST
See All Reunion BANK OWNED Homes For Sale
5. 115 WATSON CT
Type: Single Family House
Sq Ft: 3733
Why it’s the Best Deal: If you like large estate homes in resort communities than stop reading this right now and come check out 115 Watson. The Pink Flamingo knows luxury estate homes and we know that this Reunion Resort estate home is such a flaming hot deal that we should call the fire department (okay so that was cheesy we admit). This is one of the best price bank owned estate homes in Reunion right now and is perfect for a luxury vacation home rental or corporate home rental.
See Full Profile and Pictures for 115 Watson Ct
See All Reunion Resort Estate Homes For Sale
6. 7401 GATHERING CT
Type: Single Family House
Sq Ft: 4742
Why it’s the Best Deal: Here it is, the mother of them all. The largest bank owned home in Reunion. The perfect luxury vacation home retreat and even better it’s golf front. Pull up a chair and watch the pros play in the yearly Ginn open right from your backyard in this Reunion mini-mansion. This home is just too beautiful to be sitting around vacant. I do anticipate the price being a bit high however, the bank will entertain ALL offers.
See Full Profile and Pictures for 7401 Gathering Ct
See All Reunion Resort Bank Owned Estate Homes For Sale
To make it simple to remember, we have three levels of government. All three levels have a part in this registration process.
Keep control over your assets and money!
In today’s age of computers and high tech, your utility bills can come directly from your own bank account that you set up here in Central Florida. The set up fee or escrow deposit should go into your own bank account and every rental that the management company gives you can be deposited into that account to keep the funds flowing. Copies of these bills can be given to the management company to verify they are being paid but the management company does not have control over them. This becomes very important if you switch management companies. You will not be temporarily out of business until licenses and utilities transfer. Do it wisely from the start and you should have no down time. No lost revenues. No shut off utilities and new deposits being required. No new licenses needing to be paid for again.
The reason we take this position is because although you might have selected a property management to look after this home, it is the home that is regulated and assessed. If there is a violation from any of the above agencies, the home and homeowner are effected. You as an owner are responsible for the actions of your property management company.
If you’re in the market to invest in a sunny vacation home near Disney World in Orlando,Florida then lets talk money. These are five of the most common expenses that you could and most likely will incur when you own a vacation villa near Disney and use it for short term rental use. These are NOT your settlement expenses but rather your recurring expenses associated with ownership.
(For information on vacation home settlement expenses please contact us directly for a free quote)
1. Orlando Property Management (Villa Management) Fees
If you live outside of the Disney area (within a few hours or more) than management is a must in my opinion. They rent out and maintain your Disney area vacation villa, condo or townhouse for you.
Cost To You: $150 and up per month
2. Orlando Resort Community Amenity Fees
So you think that just because you own in the community means they let you use the amenities for free? Well they do (depends on your definition of free) but they certainly don’t let your lovely house guests. There are a handful of specific resort communities in Davenport and Kissimmee, Fl that tack on this lovely fee to you so that your guests can utilize amenities such as the pool and gym facilities.
Cost To You: Anywhere from $10 per each booking day on up to a flat fee of $250 per month on top of your management and HOA fees.
Read Also: Disney Area Vacation Home Communities That Charge Owners Amenity Fees
3. Orlando Homeowner’s Association Fees
Probably the most unavoidable fee that exists in Davenport, Kissimmee and Clermont vacation home communities. The fee you must pay to the homeowners association that covers that upkeep and maintenance of the community itself. This is important because if you do not pay this fee the HOA (homeowner’s association) can put a lien on your property.
Cost To You: Ranges from around $30 per quarter on up to over $250 per month
4. Property Maintenance Fees
These fees are the costs of Orlando vacation home ownership. These fees include expenses such as:
- Pool maintenance
- Yard maintenance (sometimes covered by your HOA and sometimes not)
- Utility expenses (power, water, cable, phone etc)
Cost To You: Could start anywhere from $250 per month combined and can go up from there depending several factors. I always recommend to estimate higher than lower.
5. City, County and State Short Term Rental Taxes
Just when you thought you were getting off easy here comes good old Uncle Sam with his hands in your vacation home. You will only incur these fees when you rent your property out not when you stay in it. You can only be taxed on money that you make so every booking is considered money you made according to the government. If you’re using a management company they usually take care of sending this money in for you. I still always recommend consulting with a Davenport, Kissimmee or Clemont vacation home tax specialist.
Cost To You: Usually around 13.5% with everything taken directly off the top of your booking revenue (percentage can vary depending on county)
6. Short Term Rental Insurance
This policy is required by just about any Davenport, Kissimmee or Clermont vacation home management company before they will rent your property out. The minimum coverage they require is usually around $1,000,000 but I have seen some companies willing to lower their requirements to half of that for coverage. In any event this vacation villa insurance policy is an expense you will have on top of your traditional homeowner’s insurance policy.
Cost To You: $1,000,000 policy’s range around $200-$300 per year.
Loma Vista, one of the popular short term rental vacation home communities in Davenport, FL; recently made its way into the news yesterday. According to the ABC news story two twenty something Davenport, FL teachers were charged with possession of marijuana and hauled off to jail. . . the worst part is that the pot was first discovered on one of the students that attended that school.
Who does that? I’m certainly not the type to judge other people but I’m a Mom and this is just ridiculous, if you want to smoke pot in your free time (and I’m certainly not saying you should!) then I think teaching is just not the profession for you! Teachers are expected to be role models to our children and at this point I don’t know who would make a worse role model, these gals or Brittany Spears? All I know is that some animals appear to be smarter than some people. I’m putting in a request for the camel. . .