0 Miami Real Estate Market Forecast: 2020 Looks Promising In Miami Beach

Posted on February 25, 2020 by Sean Greco

For many, 2020 has brought with it a feeling of potential. Like a deep breath of fresh, crisp air at the beginning of a new adventure. I suppose every new year is like that, in a way. Bringing with it the promise of a new chapter, a fresh start. But this one has admittedly felt more powerful. The energy is palpable and catching. Have you felt it in your life?

Surely, I am not going to advise you to invest in Miami real estate simply because the energy of a fresh decade holds promise. But with any fresh start comes a time for fresh ideas and opportunities. If you are considering investing in real estate this year, you should really look at Miami, paying special attention to the submarkets. Miami Beach is looking good, as are several other key submarkets.

Miami Real Estate Market Forecast Is Promising as Population and Income Growth Continue

Population and income growth are great leading indicators of real estate investment potential. Miami has seen strong growth in both of these areas, a trend that is expected to continue. In fact, SmartAssets just listed Miami as one of the top 10 “boomtowns” in the country. Boomtowns are cities where rapid economic growth is creating jobs and attracting new residents. Americans are flocking to these cities because “business is booming, jobs are plentiful and salaries are rising”.

Miami population grew by 9.43% from 2014 to 2018. The Bureau of Economics and Business Research, Florida Population Studies has predicted Miami population could grow by another 13% from 2020 to 2030, ending at close to 3.5 million people.

Income growth in itself is a sometimes forgotten metric that has a huge impact on the state of the housing market long-term. Miami household income grew by a whopping 31% from 2014 to 2018. This rapid income growth helped Miami achieve the rank of second-fastest-growing large city in America in a recent study. The study compared 515 U.S. cities across 17 key factors ranging from population growth to college-educated population growth and unemployment rate decrease.

Miami’s population and income growth can be directly correlated to growth in the housing market. According to a Comprehensive Housing Market Analysis by the U.S. Department of Housing and Urban Development, during the 12 months ending February 2019, new and existing home sales increased 7% in Miami-Miami Beach-Kendall, Florida.

According to a 2019 Knight Frank Wealth Report, Miami takes the title of #1 fastest growing luxury real estate market in the US, and #5 fastest growing luxury real estate market in the world after Madrid, Berlin, Paris and Cape Town.

Miami Housing Demand to Surpass Development Growth

There has been a large amount of development in Miami and Miami Beach in recent years. So much so that it has even slightly outpaced population growth, leading to a surplus in real estate supply. Some of these developments are still under construction with closings expected throughout the year, but the flow of new inventory is slowing. A forward-focused eye can see that this is likely to level out in the investor’s favor.

Far fewer new Miami developments are slated to break ground than there were several years ago. With population growth predicted to continue at a healthy pace, supply will fall off as the inventory is absorbed. This presents an opportunity to secure an investment now when the competition is less fierce and sellers more motivated due to properties languishing on the market. Eventually, the seller will need to sell. So, buy right, then the fundamentals will take over from there. You truly ‘make your money’ on the buy-side in Real Estate. Especially if you follow the fundamentals and truly understand the sub-markets.

While there has been excess demand in several sub-markets, Miami Beach is a sub-market with good fundamentals that has been somewhat stagnant in the past several years. With sound fundamentals and reduced competition, Miami Beach is worth a good look. The State of Florida has so much momentum right now. Miami Beach is positioned extremely well and will continue to be a key piece of the puzzle.

Savvy Investments Continue in Miami

The slowing of new development is a natural thing that allows the market’s supply and demand to re-balance. However, new development has not fallen off of a cliff entirely. Continued investments from experienced investors offer another positive sign for Miami’s real estate market forecast.

Moishe Mana, who owns a major redevelopment project in Wynwood, has put together a growing portfolio of roughly 45 buildings in Miami since 2014. According to an article by Forbes, in October, the Mana Group unveiled a timeline for the redevelopment of his downtown Miami properties, including 11 buildings between Southeast First Street and North Miami Avenue that would be delivered between the first quarter of 2021 and the fourth quarter of 2024.

As all good investors know, the key to making a sound investment is looking closely at the fundamentals when identifying the potential for growth. In Miami Beach, the fundamentals are as good as ever. Interest rates are low, tax advantages are large, and demand is slated to grow. Miami is a buyer’s market now, and a seller’s market to come. That makes it the perfect time to get in on a sound real estate investment in Miami. As Warren Buffet would say, “be greedy when others are fearful”.

0 Capitalism Feasts on Miami Real Estate Market, Consumers Suffer

Posted on January 29, 2020 by Sean Greco

Let’s face it, the Miami real estate market is oversaturated with under-qualified agents and over-promising vendors. A slew of agents with a severe lack of experience and dedication are fed leads from automated systems daily. Overwhelmed with the noise, many customers inadvertently do themselves a disservice by working with the first agent they speak to. And the vendors – oh, the vendors. They prey on the real estate industry because it’s a big, lucrative, easy target. They offer forward-looking solutions, but what value are they adding to the end customer?

Miami Real Estate Market – Fastest Growing Luxury Market in the US

When you look at the sheer size of the Miami real estate market, this oversaturation starts to make sense. According to Knight Frank Wealth Report, Miami takes the title of #1 fastest growing luxury real estate market in the US, and #5 fastest growing luxury real estate market in the world after Madrid, Berlin, Paris and Cape Town.

Total sales volume for Miami in Q2 2019 topped $3.6 billion dollars. And the beast is still growing. Median home prices have increased for 30 consecutive quarters in Miami, a streak spanning 7.5 years while short sales and foreclosures have decreased heavily over time.

Miami Real Estate Market Foreclosures Over Time –

Lucrative Real Estate Markets Create Opportunities for Vendors

Any industry of this size is bound to have an influx of opportunistic vendors and agents, all grabbing for their piece of the pie. A great example of this is Zillow. About 70% of Zillow’s revenue comes from the company’s “Premier Agents” who pay for placements on Zillow to generate leads. It’s reported that Zillow brought in $300 million in revenue in Q1 2018 alone, which equates to over $200 million in revenue from agents paying to be connected to customers in one single quarter.

What is the consumer getting when they are connected to a Zillow “premier agent”? Literally just someone who has paid a fee to Zillow. That’s it. Not a trusted provider or anyone with any sort of guaranteed experience. This is a perfect example of the type of thing that exists to falsely build confidence and ultimately creates confusion.

There is no shortage of agents paying the Zillow’s of the world, which adds to the noise for the consumer. The chance that a consumer gets paired with an inexperienced agent while shopping around online is quite high. In fact, a 2014 NAR study reported 87% of all new agents fail after five years in the industry and only 13% make it, mostly due to issues with sales volume.

Capitalism Feasts on the Real Estate Industry

Outside of property listing aggregators, there are innumerable other “top” real estate agent short-lists and certifications. Many aimed at giving agents another badge with which to attract potential customers. While perhaps well-intentioned, many of the accolades that are not backed by the NAR are not executed or regulated consistently enough to prove any real distinction or value. In this way, they only serve to offer further confusion for the consumer.

According to statista.com, in 2016, agents and brokers’ ad spending amounted to 9.3 billion U.S. dollars. There are so many agents out there that don’t produce, yet they throw money at whatever hot new thing they think will make them rich and it skews and distorts the industry as a whole. And then 87% of these agents are gone in 5 years, largely because they weren’t able to generate enough business to remain profitable.

Investments in technology amidst the changing landscape also come into play. “According to PitchBook, an analysis firm owned by Morningstar, the amount of venture capital invested in real estate technology companies was up to $1.2 billion in 2017 from just $31 million in 2012.” But what technology is helping the consumer, and what technology is just designed to increase transaction volume for real estate agents?

When It Comes to Picking An Agent – Be Picky

Consumers in the real estate industry are still too trusting. In general, they are not taking the time to vet their agents. NAR found that an estimated 72% of customers do business with the first agent they talk to. This is a recipe for disaster, leading to over 26% of people stating that they would not use their agent again, and so many more not knowing what they were missing.

Our advice to all consumers in the real estate industry: Break the trend. Take the time to vet your real estate agent. This is hard to do amidst the noise from vendors and inexperienced agents, but we promise it’s worth your time. Do this for yourself before paying an agent thousands of dollars to sell one of your most valuable assets, or signing a mortgage for hundreds of thousands of dollars that spans the next 30 years of your life.

Don’t just go with the first person you hear from. The automation that likely drove the speediness of that response will not replace the real value of an experienced real estate agent. The real value comes from the years of experience that are used to guide you through the real estate transaction process and maximize the potential of your investment.

The Limitations of Automation in Real Estate

Automation can sometimes be used to the consumer’s benefit, but the process itself is so complicated, granular, local, and personal. We’re not even close to tying all of the pieces together effectively in an automated way. Automation is still largely insufficient given the large amounts of money at stake and the magnitude of the decisions.

You need to know if the area in which you’ll live, vacation or invest will increase in value over time. This process can be so granular that two neighboring buildings can have vastly different property values and sales hurdles based on factors that an algorithm may never consider – such as frequency of maintenance, zoning, and whether or not they have a doorman and a secure lobby. The process is complicated. There is still a human element to real estate that can’t be relegated to an algorithm.

A good real estate agent focuses on the quality of their customer’s experience over the number of their leads. They make their customers feel comfortable and heard as they guide them through the process. Speaking to a knowledgeable real estate agent about the market, the pros and cons of the decisions to be made, and what to expect along the way provides a level of comfort that no amount of automation can replace. No automation can really take you through that complicated process in an informed way. Neither can a hyped-up vendor or a bad or inexperienced agent.

In Conclusion

The growth in the Miami real estate market has created an opportunity for vendors and entrepreneurs to make money. Unfortunately, that doesn’t correlate to sustainable businesses that help consumers. Instead, a landscape has emerged where vendors prey on real estate agents and the consumers ultimately suffer through a lack of personalization and clarity. Vendors should exist to service-producing real estate agents, allowing those agents to add value to the end customer. Agents should leverage the available products and technology to the consumer’s ultimate advantage. The real estate industry has a ways to go to achieve a more symbiotic relationship between all parties.

0 Miami Beach’s $100,000 Fines for Illegal Airbnbs Struck Down in Court

Posted on November 19, 2019 by Sean Greco

Court Strikes Down Miami Beach Ban on Short Term Rentals

A Miami-Dade County court struck down the city ordinance that fines homeowners up to $100,000 for repeat short-term rental violations. Short term rentals are not allowed in many areas of Miami Beach and fines for violations have increased greatly in the past several years. 11th Circuit Court Judge Michael Hanzman ruled that the ordinances “are in jarring conflict with [State law] and are therefore illegal and unenforceable.”

This lawsuit began in 2018 when Miami Beach resident Natalie Nichols, represented by the Goldwater Institute, sued the city for the ban and the excessive fines that it imposed. Goldwater Institute represents other Airbnb hosts across the country and filed the lawsuit on Nichol’s behalf.

Nichols sought to have the ban overthrown on the basis that short term rentals are legal in some parts of the city, which treats her property differently from “similarly situated properties”. Nichols rented her two properties on a short term basis prior to the ban in 2010. She also challenged the “grossly excessive punishment meant to deter people from peacefully using their property for home-sharing.”

According to Mayor Dan Gelber, “It’s no secret that rental rates in Miami Beach are astronomical, and our previous fines represented the cost of doing business and were a mere fraction of the charges for the illegal rentals. There was a need for more substantial penalties, as the city has an obligation to maintain the aesthetics, character and tranquility of our residential neighborhoods.”

Judge Hanzman ultimately struck down the city’s short term rental ordinance, declaring that the $20,000 to $100,000 fines violate state law. Florida law prohibits local governments from fining residents more than $1,000 a day for code violations. Hanzman noted that the state “clearly and unambiguously imposed caps on the amount local governments may fine citizens for code violations”.

Goldwater Institute’s Lead Attorney on the case Matt Miller said “This ruling vindicates the property rights of all Miami Beach homeowners who share their homes as short-term rentals. Home-sharers in Miami Beach no longer have to fear that they will end up in financial ruin for exercising this essential property right.”

The Future of Short Term Rentals in Miami Beach

The city immediately announced that it would appeal the court’s decision to strike down the short term rental ordinance. According to the statement, “The City will be immediately seeking its appellate remedies regarding this matter, and the ruling of the circuit court will be stayed pending the determination of the Third District Court.”

The city also made it clear in the statement that they would continue to enforce the ordinance during the appellate proceedings. “The City will continue to take all necessary and appropriate enforcement action for any individual(s) that violate the City’s Ordinance during the Appellate proceedings.”

Mayor Dan Gelber provided this comment via text message: “We respectfully disagree with this Court’s ruling and intend to ask the appellate court to validate our City’s ordinance.”

In a footnote, judge Hanzman noted that the “The Court declines the City’s invitation to sever the penalty provisions from the remainder of these ordinances, city is free to enact replacements so long as they are constitutional and do not conflict with state statutory law.”

It would seem that the city could simply amend the ordinance to abide by the state’s fee limitations, but the state actually pre-empted cities from regulating short-term rentals in 2011. Miami Beach was grandfathered in since their regulations went into effect in 2010, but the judge’s ruling invalidated the ordinances. If the ruling stands, it is unclear how new regulations would be able to be put into place and enforced.

July 2020 Update – City of Miami Beach Loses Appeals

The city of Miami Beach racked up a couple of losses in July surrounding appeals of the court’s decision to strike down the short term rental ordinance.

On July 16, the appeals court rejected the city’s petition to overturn a Miami-Dade judge’s ruling that determined the city didn’t have the authority to shut off water and sewer connections to a property due to unpaid short-term rental fines. This particular homeowner owed hundreds of thousands of dollars in short-term rental violations. The ruling solidified the decision that Miami Beach cannot shut off water and sewer services to a house whose owner refused to pay short-term rental fines.

Later in July, the city of Miami Beach struck out for the second time on their larger appeal. On July 22nd, the Third District Court of Appeals court rejected Miami Beach’s petition to overturn a Miami-Dade judge’s ruling that determined that the city’s exorbitant fines ran afoul of state law.

Miller, the attorney representing Nichols, said his client is pleased with the appellate court’s decision. “Now, more than ever, people need the extra income that short-term rentals can generate,” Miller said. “Ms. Nichols looks forward to resuming her rentals as soon as possible.”

Looking forward, Miami Beach City Attorney Raul Aguila left open the possibility for additional legal action at the appellate level or potential amendments to the existing legislation.

“The city maintains that its short-term rental fines comply with all applicable laws,” Aguila said in a statement. “In the meantime, the City’s short term rental laws remain in full force and effect. I have, additionally, not ruled out going forward with an amendment to the penalty and fines provisions of the city’s short term rental laws, lowering the fine schedule, per the lower and appellate court’s orders. At this time, all options are on the table.”

The History of Short Term Rentals in Miami Beach

Miami Beach’s short term rental regulations went into place in 2010, severely limiting what areas are allowed to use properties as short term rentals. Nichols speaks to the effect the ban has had on Miami Beach homeowners, saying “like many others in Miami Beach, I bought properties in a resort town in a neighborhood where it was, at the time, legal to conduct short term rentals. At the height of the recession, when property values had dropped 75%, the city stripped us of our property rights, directly causing foreclosures and short sales.”

The city has been further cracking down on short term rental violations for the past several years, implementing steep fines in March 2016. These fines start at $20,000 for a first offense and then work their way up to $100,000 for repeat offenses.

According to Miami Herald, from March 2016 to March 2019, Miami Beach’s code compliance department issued violations for 260 units and issued $13.3 million in fines. Many property owners appealed, and that amount dropped down to $8 million. By June of this year, the city had collected around $500,000 in fines, or 6 percent of the amount it had issued since March 2016.

The city settled another legal battle with Airbnb in August where it was determined that Airbnb is required to display business licenses and resort tax certifications for Miami Beach listings. However, falsification appears to be rampant as the home-sharing platform is not required to verify whether those numbers are valid. The city licensed fewer than 1,000 short-term rentals as of this summer, but approximately 4,500 entire homes are advertised on Airbnb, according to market data from BNBVestor, a short-term rental analytic company.

Since this settlement, the city has cracked down further on short term rental violations. The city announced in August that it will prosecute hosts who provide fake business license numbers in order to list their properties on home sharing sites. According to Melissa Berthier, a spokesperson for the city, the penalty for the violation is 60 days of jail time and/or a $500 fine.

Is Home Sharing Still Illegal in Certain Areas of Miami Beach?

Although the city’s ordinance banning short term rentals was struck down, the city has indicated that it will continue to enforce the rules on the books as they seek to appeal the decision. Therefore, the court’s ruling does not mean that short-term rentals are now legal everywhere in the city, nor does it invalidate the requirement for a business license and resort tax certificate for anyone within a legal zone for short term rentals.

0 Why All Real Estate Agencies Should Be Using Electronic Lockboxes

Posted on October 15, 2019 by Sean Greco

At Properties and Paradise, we think it’s important to use technology to the advantage of our customers. One small but impactful piece of technology that we love is the electronic lockbox. Electronic lockboxes provide a safe way to store keys for real estate listings to allow easy access for house showings. They provide many benefits by way of security, efficiency, and ease of agent communication, making it a no brainer to use electronic lockboxes over outdated manual solutions.

What are Electronic Lockboxes?

Electronic lockboxes allow real estate agents on both sides of the transaction to gain access to the listing in a secure and convenient manner. This lockbox is placed on the listed property’s door handle, and agents can open the box to access the listing keys using either an app on their phones or an Ekey.

The Supra iBox is our electronic lockbox of choice. They should be highly utilized in Miami as they are provided for free by the Miami Association of Realtors to anyone who has a membership. With a tool like the Supra iBox, gone should be the days when agents had to stop by a brokerage for a key, or pass around codes to a now antiquated lockbox model. The Supra iBox allows for a smooth showing process by providing flexibility in a secure manner.

Using infrared technology, agents can simply point at the iBox with the eKEY or an eKEY enabled smartphone to active the iBox and retrieve the listing key held inside. Each time an iBox is opened, the iBox records the date and time, as well as the identity and contact information for the keyholder. This information can be obtained online by the listing agent, or from the iBox itself.

The Supra iBox also allows agents to easily communicate by way of electronic notes that can be accessed online, or read directly from the iBox itself. Another helpful feature that the iBox offers is the ability to customize showing hours, with an option to require that all showings be pre-scheduled with the listing agent.

What Are the Advantages of Electronic Lockboxes?

One of the advantages of Electronic Lockboxes is that they provide a reliable system for security during the real estate selling process. Lockboxes themselves are virtually impossible to steal. Many electronic lockboxes allow the agent to set the operating hours so that the home can only be accessed at certain times. Lost keys, theft, and all the other safety issues related to giving out a manual lockbox code can be avoided with this simple technology which, again, is included with MAR memberships.

Electronic lockboxes allow agents to better serve their customers by giving them greater flexibility and control over access to listing keys. Any agent savvy enough to have adopted this technology can use it to avoid a trip to pick up a key, or having to track down a lockbox code. This means that all parties can avoid super inefficient showings requiring coordination between the listing agent, showing agent, and the customer’s schedules. This also means that listing agents can provide clients with showing times that best fit their schedules. In the end, this likely results in more showings for a home!

Another really great benefit of electronic lockboxes is that they allow agents to keep track of their showings. With the Supra iBox, you can set up alerts to inform you when the lockbox is opened and closed, and you will know who the showing agent is. Looking back, you will be able to tell exactly who showed the listing, and when. The best part? The showing agent’s contact information will be readily available.

Why All Real Estate Agencies Should Be Using Electronic Lockboxes

In addition to the increased security, flexibility, and organization that electronic lockboxes provide, electronic lockboxes also facilitate real estate agent communication. The Supra iBox allows agents to leave electronic notes for showing agents. These notes can include helpful information, such as alarm codes, instructions like “don’t let the cat out”, or helpful showing tips such as “open the curtains in the bedroom for a great view of the yard”. These little pieces of information can be super impactful, leading to greater success with showings.

Electronic lockboxes also provide a much more reliable way to obtain feedback from the showing agents. Before electronic lockboxes were commonly used throughout the industry, agents had to rely on business cards that were (hopefully) left behind for them, or they had to manually keep track of who was picking up a listing key. Now, the showing agent’s contact information is stored by the electronic lockbox, making it easier than ever for agents to communicate. Ultimately, this allows the listing agent to be more productive.

In Conclusion…

Electronic lockboxes are the obvious choice for any sophisticated real estate professional. Electronic lockboxes provide homeowners with more security, allow the listing agent to be more effective, and make for a much smoother process for the showing agent. The technology makes so much sense. Agents who have yet to adopt it are holding the industry back by forcing the need for highly inefficient secondary methods.

0 Owning a Vacation Rental in Miami Beach

Posted on September 5, 2019 by Sean Greco

Owning a vacation rental can be quite lucrative, especially in popular destinations such as Miami Beach. If you are considering entering into the Miami Beach short term rental market, it is important to have a good understanding of the legal and financial implications, particularly in the wake of the settlement between Miami Beach and Airbnb.

The Future of Airbnb in Miami Beach

The vacation rental market in Miami Beach has been making headlines for quite some time, and not just due to the amazing beaches and nightlife. Miami Beach has been involved in a lawsuit with Airbnb since January, when Airbnb filed suit against the city alleging Miami Beach’s rules concerning short term rentals violated federal law. This suit was settled in early August, bringing clarity to the future of vacation rentals in Miami Beach.

So what was the lawsuit all about? Much of it revolved around a Miami Beach ordinance that required companies such as Airbnb to verify and display a city business tax receipt and a resort tax certification alongside listings. These are required in order to avoid fines of up to $20k for noncomplying homeowners. Miami Beach placed the onus for this compliance on home-sharing websites in response to a loophole in which tenants were renting out and subletting rooms and then sticking the property owners with the fines.

According to the complaint, “The burden to Airbnb of reviewing third-party content to alter, prohibit, or remove listings… would be an ongoing and expanding burden. In the normal course of business, hosts can add new listings, change the status of listings, and deactivate listings every day, at any time. Airbnb then, too, would have to monitor for every change constantly…[which] would cause a significant disruption to Airbnb’s operations and impose substantial personnel and other costs”

The lawsuit between Airbnb Inc. and the city of Miami Beach was dismissed after mediation proceedings produced a settlement between the two parties. As a result of the settlement, Airbnb will no longer be expected to verify the validity of the business tax receipt number and resort tax number for each property listing. Airbnb will provide the mandatory fields for hosts to fill out while the city will verify validity. In addition, Airbnb paid Miami Beach $380,000 to be used at their discretion “including to educate residents about home-sharing rules and/or for the enforcement”.

Airbnb sees this settlement as a positive breakthrough, noting that the settlement is “a win-win for Airbnb and our Miami Beach hosts as we move towards a constructive and collaborative working relationship with the city. It is a win for our hosts who will have certainty as to the rules and a win for the city when it comes to having a regulatory framework that will work.”

The clarity gained from this lawsuit by the largest player in the home-sharing industry should bring comfort to those who are in, or considering entering the vacation rental market in Miami Beach. It paves a clear path forward for the industry and should allow it to continue growing, within the guidelines set forth.

Practice Safe Renting: How to Avoid Potential Fines

Homeowners who participate in short term rentals in Miami Beach without following the Miami Beach ordinances can face huge fines of up to $20,000. If you are considering entering the vacation rental market in Miami Beach, it is important to make sure that you have the necessary approval.

The City of Miami Beach Land Development Regulations (Chapter 142, Article IV, Division 3, Sec. 142-1111) prohibit short term rentals for periods of six months or less for homes located in certain areas of the City. Miamibeachfl.gov provides an easy way to verify that the property that you intend to rent is permitted. Enter your property address here to find out – or reference the zoning map.

In addition to the zoning requirements, there are slews of other licenses, certificates, and receipts that homeowners who intend to rent a property on a short term basis must have. This includes:

Obtain Florida state Department of Business and Professional Regulation (DPBR) business license
Register with the Florida Department of Revenue
Obtain a Miami-Dade Certificate of Use
Obtain a Resort Tax Registration Certificate if in the City of Miami Beach
Obtain a Business Tax Receipt from the City of Miami Beach

Other requirements may also pertain to your dwelling. Within Miami-Dade county, if a home is part of a condominium or homeowner’s association, one must obtain written authorization from the relevant association regarding the operation of their short term rental. Additionally, swimming pool safety requirements are in place within Miami-Dade county. Vacation rental homes with swimming pools can not permit children under the age of 6 to stay unless the pool has a safety barrier, safety cover, pool alarm, or door latch/alarm.

Understanding A Vacation Rental’s Investment Potential

Vacation rentals in Miami Beach can truly be great investments, but it is important to have an accurate understanding of the revenue that your investment could be expected to drive. To arrive at this figure, you must have a firm gauge on the income your investment will drive, as well as the expected costs you will incur through fees and maintenance.

To arrive at your potential income figure, you need an understanding of the nightly rate that you can charge, and the occupancy rate that you can expect to achieve. Location, amenities, home size, and seasonality are all factors in determining this figure. Working with an experienced real estate firm is invaluable in gaining confidence in this estimation. Don’t trust blanket advertising figures that promise a certain percentage increase for short term rentals in comparison to renting to an annual tenant. This figure can vary widely.

Prospective investors must also have an understanding of the fees and expenses their investment will incur. This includes an understanding of the depreciation that the property will face as a result of additional wear and tear, and what the maintenance and cleaning plan will entail. In Miami Beach, rentals for periods of less than 180-days are subject to a resort tax, which is 4% on the rent of the dwelling. To calculate your potential resort tax, use this form.

In order to make sure that your Miami Beach vacation rental investment is going to work in your favor for years to come, you need to be informed. Working with an experienced real estate agent who has an abundance of market knowledge empowers you to make the best decision for your lifestyle, considering your financial goals. Your agent can help you understand the power of your investment in light of location, market trends, and the current legal landscape. Reach out to an agent at RE/MAX Paradise today if you are considering purchasing a vacation rental in Miami Beach to get a thorough understanding of your investment landscape.

0 How To Choose A Real Estate Agent

Posted on July 31, 2019 by Sean Greco

Where are all of the good real estate agents hiding?

Well, they aren’t hiding, really. But it can feel that way. The push for immediacy along with a saturated real estate industry can lead to those in need of an agent being inundated with options without any clear direction on how to choose a real estate agent who is right for them.

Automation is common these days, which means that many agents will be quick to ‘respond’ to submitted inquiries for properties across the web. Still, the fact of the matter remains that the first agent to reach out may not be the right agent for you.

An agent’s experience level matters. An agent’s market knowledge matters. An agent’s access to marketing platforms matters a ton!

A home is a huge asset – it takes time to find the best partner to guide a buyer or seller through the real estate transaction.

Let’s Look at the Numbers

There are over 187,000 Realtors in the state of Florida. There are over 55,000 agents that belong to the Miami Association of Realtors. However, Florida Realtors reports that there were just shy of 395,000 condo and single-family home sales in Florida in 2018. In Miami, that number falls to less than 91,000. In the core Miami Beach markets, it falls to just shy of 2,500. Assuming that there are two transaction sides to each sale, these numbers can tell us a few things:

The average number of homes sold in Miami per Miami Association of Realtors member in 2018 was only 3.3 homes. This low number shows the saturation of less experienced real estate agents in the market, as experienced agents have no problem far exceeding this number.

Less than 3% of Florida Realtors closed a sale in the core Miami markets in 2018.
9% of Miami Association of Realtor members closed a sale in the core Miami markets in 2018.

Despite the fact that a home is often a person’s largest asset, National Association of Realtors statistics says that there is a 72% chance the customer will do business with the first agent they talk to. Combine this with the fact that there are many less experienced agents readily available, you don’t always have a recipe for success. Only 69% of sellers and 74% of buyers would use their agent again. That’s 26% – 31% of people who feel some level of regret for the partner they chose to help handle their largest asset!

Anyone who wants to avoid this type of regret needs to feel comfortable spending a bit of time finding the right agent, and they need to know what to look for.

How To Choose A Real Estate Agent

Market Knowledge

Look for an agent that knows the market like the back of their hand. Some markets can be quite volatile, so a high level of market knowledge is required to make sure that you are on the receiving end of a great deal. The Miami market, for example, is quite unique. It is full of international investors, vacation home buyers, and neighborhoods with vastly different vibes and price tags. A great real estate agent knows not only how to navigate this, but how to leverage it.

Marketing Capabilities

Home sellers need to make sure that they are partnering with an agency that can get their property in front of buyers. An agency’s marketing capabilities is endlessly important. Sellers should ask the prospective agent what marketing tools they have at their disposal, and they should validate if these tools are working by getting an idea of their average days-to-sale. RE/MAX agencies such as RE/MAX Paradise often have access to more robust marketing opportunities than some others.

Range of Experience

Don’t be afraid to ask about your agent’s experience. Don’t be afraid to ask questions in general! You should interview at least 3 agents before making your final decision. Some questions to consider asking:

- How long have you been selling real estate?
- What is your ratio of sellers to buyers?
- What is your average number of clients?
- What are your core markets?

References & Customer Reviews

One of the best ways to vet your prospective agent or agency is to hear from people who have worked with them in the past. Ask for references, and check into them. Look for additional reviews from people they have worked with in the past. How were their experiences? Overall, was it glowing, mediocre, or is there something concerning in there?

Hospitality

This is about more than just finding an agent who is courteous. You are going to be spending a lot of time with your real estate agent throughout the home buying or selling process. It is important to find someone who you are comfortable with and who you enjoy being around. Look for someone you like working with, whom you feel you could grow to trust. Trust will be an important part of this relationship.

In a quickly-changing, international market full of investors, where demand is based upon the interaction of international economies and shifting currency exchange rates, having a knowledgeable agent that you trust is a must. If you are looking to buy or sell a home in Miami, reach out so that we can pair you with the agent that best suits your needs.

0 Benefits of Working Remotely in Real Estate

Posted on June 26, 2019 by Sean Greco

Benefits of Working Remotely In Real Estate

Real estate is a dynamic, fast-paced industry in which time is a precious resource. In an environment such as this, ideas to increase productivity and save time are worth more than gold. This is one of the reasons that more real estate professionals are seeking flexible work environments that can meet their businesses needs and work better for their lifestyles.

Saving time is one of the many benefits of working remotely in real estate. Saving money, avoiding traffic, working from the comfort of one’s home, and helping the environment are a few other compelling advantages of these flexible work environments.

Remote Employees Are More Productivity

Real estate is a fast-moving industry in which it can often feel like there are not enough hours in the day. Remote employees are at an advantage here – many studies have shown that telecommuting can greatly increase productivity.

benefits of working from home

Companies such as Best Buy, British Telecom, and Dow Chemical have shown that teleworkers are 35-40% more productive. American Express workers also produced 43% more than their office-based counterparts. Reduced distractions, increased flexibility around work hours, and reduced time spent in commute are just some of the ways that remote work can help employees be more productive.

Businesses sometimes feel that having employees in the office is a way to ensure productivity, but in fact, this is not true. Research suggests that in an 8-hour day, the average worker is only productive for 2 hours and 53 minutes.

Remote Employees Have More Time For Themselves

The increase in productivity seen from remote work situations lends itself to another important factor in employee happiness – more free time. Remote employees typically have more time for themselves which they can invest in hobbies and interests. This is because they are able to be more productive during work hours while also saving time by eliminating their commute.

The elimination of the commute is particularly impactful in the real estate industry where jobs are typically located in highly populated, high traffic areas which can make commutes lengthy, difficult, and stressful. The average daily commute in the US is about 26 minutes according to the U.S. Census Bureau. If you commute to a full-time job 5-days-a-week, that adds up to over 200 hours a year. That’s 9 days! Remote employees can save a full 9 days worth of time simply by avoiding the commute to and from work.

Everything considered, full-time remote work can result in an extra 2-3 workweeks of free time a year. As a result, a majority of teleworkers report they spend more time with family and friends and partaking in leisure activities.

Remote Employees Save Money

When you work from home, time isn’t the only thing that you are saving. You are also saving money. Remote employees can save on gas, clothes, food, parking, and in some cases, daycare costs as remote work situations often allow for additional flexibility for family home environments. According to Global Workplace Analytics, average savings are $2,000 to $6,500 per year per person for half-time telework.

Remote work can also provide an opportunity for big savings by adding flexibility to your location of residence.

benefits of remote work Within the real estate industry, the best jobs are typically in highly populated areas where real estate costs can be higher than average. This sometimes means that living within more expensive areas or commuting long distances to work is a necessity. Telecommuting makes it easier to avoid high housing costs by allowing you to live in more affordable areas. Analysis shows that employees can save over $7,000 per year for every $100,000 reduction in home value.

Remote Work Has Health Benefits

Remote work situations allow employees to have more personal independence with increased control over their work environments, and often their schedules. This in itself can lead to reduced stress and increased employee happiness. Other health benefits can be found in reduced exposure to airborne illnesses and occupational hazards. In addition, remote employees report being able to make more time for exercise.

Remote Work is Better For the Environment

In addition to the multitude of benefits that remote work situations can provide for employees and employers, it also benefits the environment. Telework offers an easy, effective way for companies and individuals to reduce their carbon footprint.

According to Global Workplace Analytics, half-time telecommuting by those with compatible jobs and a desire to work from home could reduce carbon emissions by over 51 million metric tons a year. To put this in perspective, this is the equivalent of taking all of New York’s commuters off the road.

Effective Remote Work Environments in Real Estate

Modern technology has opened up a world of possibilities for businesses that are ready to adapt. With the technology that we have available today, working remotely does not have to mean a lack of collaboration or connection. Video call software can remove the distance with the click of a few buttons so that relationships can still develop and flourish from miles away.

In addition to working from home, there are a variety of flexible work alternatives to the standard office. Shared workspaces, whether utilized by a company or an individual, can create an environment outside of the home for focus, for social interaction, and as a place to meet when in-person proves to be the best format for the situation. These types of environments provide flexibility to benefit both the company and the employee. This is particularly true in real estate, where the standard office environment is less necessary.

We would love to hear from you. How has a remote work environment helped you or your business? What challenges do you face and what strategies do you use to make working remotely work for you?

0 Guide To Sunset Harbour – South Beach’s Most Sought After Location

Posted on April 23, 2018 by Sean Greco

Sunset Harbour

The Sunset Harbour area is quickly becoming one of the most sought-after locations in Miami Beach to live and play. This pedestrian-friendly, waterfront neighborhood offers a more laid-back vibe than some of South Beach, but that doesn’t mean that there is any less to do. Amazing shops, restaurants, and entertainment can be found throughout the small area, attracting the Who’s Who to call it home.

Sunset Harbour has gained notoriety in South Beach for its laid-back character and awesome food, drink, and shopping options. The area has such a unique vibe with the fun nature of South Beach combined with a more relaxed neighborhood atmosphere. Running along Biscayne Bay, the area also features some of Miami’s most beautiful waterfront views. You can browse trendy shops in the daytime or enjoy an exciting nightlife. There is no shortage of great restaurants in the area, along with food markets and several fitness options. Find out more about what makes Sunset Harbour an amazing area to call home and scroll to the bottom to check out the properties we have available in the area.

Where To Eat In Sunset Harbour:

There are so many great options for food in Sunset Harbour, it’s hard to highlight just a few. Nevertheless, here are a few of our favorites.

Lucali – 1930 Bay Rd

The second location of this Brooklyn pizzeria brings a Miami spinoff to the new york pie. This restaurant serves Italian style pizzas and calzones alongside an expansive list of craft beers and wine.

Pubbelly Noodle Bar – 1418 20th St

Under culinary director and James Beard Award Finalist José Mendín, The Pubbelly Group blends Mendín’s Puerto Rican and Miami backgrounds to create the Asian inspired menus. Try the kimchi fried rice at Pubbelly Noodle Bar, or head over to the very popular Pubbelly Sushi at 1424 20th St. to try the pork belly sushi or wagyu tartaré on their al fresco terrace.

Soul Tavern – 1801 W Ave

As a newer addition to Sunset Harbour, this vegetarian gastropub was inspired by the elements of nature – earth, wind, fire, water, and metal. They are striving to bring health back to dining, offering 37 herbal elixirs alongside the food menu.

Sushi Garage – 1784 W Ave

This former body shop turned sushi restaurant offers a unique dining experience on Sunset Harbour. This restaurant is run by the same team behind the French, Peruvian, and Japanese fare at rooftop Juvia.

Where To Get A Drink In Sunset Harbour:

Purdy Lounge – 1811 Purdy Ave

Purdy Lounge is Sunset Harbours go-to corner bar. Open late night until 5 a.m. 7 days a week, it’s cover-free with great happy hour specials, live music, DJ sets, and even bottle service. It’s an unassuming place with a more laid-back vibe for people who don’t want to go to the typical South Beach club.

Where To Get Coffee in Sunset Harbour:

Panther Coffee – 1875 Purdy Ave

This trendy, industrial-chic coffee shop can be found on the northern end of Sunset Harbour. The coffee beans are roasted on-site, adding to the hipster vibe. This Panther Coffee location is less crowded than the Wynwood location, which is another plus. It’s easy for this place to become a go-to.

Where To Grocery Shop in Sunset Harbour:

The Fresh Market – 1800 West Ave

The fresh market offers a fresh take on grocery shopping. They strive to provide the warmth of a local friendly market with remarkable service and produce of the highest quality. This places aims to be different than the over-industrialized shopping experiences that are prevalent in America.

Trader Joe’s – 1698 Alton Rd

A Trader Joe’s is planned to go in nearby on Alton Road. This will be the second Trader Joe’s location in Miami. Construction is already on the way for this 11,500 square-foot Trader Joe’s location. This market offers amazing food and drink options from around the globe, as well as locally sourced items.

Publix – 1920 West Ave

In addition to the other market options, there is a Publix Super Market in the area that can fill any and all of your grocery shopping needs.

North Bay Road

One of our favorite places near Sunset Harbour is lower North Bay Road. Why? Because it features the walkability of an urban condo with the prestige of a single-family home neighborhood. The mix of urban, South Beach living along with the welcoming feel of a reputable family neighborhood is causing many people to buy and completely renovate buildings in the area into some of the nicest homes you will see. North Bay road also runs along Biscayne Bay, so the west lots are all waterfront with some influential owners. Business owners, executives, sports athletes, and celebrities, all call this street home.

Sunset Harbour Listings

2059 North Bay Road

Just 1 block away from Sunset Harbour, this stunning home on North Bay Road is in a highly sought after location. All of the shops and restaurants of Sunset Harbour are literally just one block away, yet the home is situated on a quiet residential street with some pretty prestigious neighbors.

This 4 bedroom, 4 bathroom house boasts a den, a beautiful formal living room, a formal dining room, and a bonus area off of the large kitchen. There is also a roof terrace looking over the amazing private pool and patio area.

north bay road

In addition, there is a detached 2 car garage that includes a full bathroom for pool guests on the ground level. On the second story, there is a residential space with a kitchenette, a closet, full bath, and a balcony. This unique space would be great as an office, a bonus room, or short or long-term guests.

0 Ultra Music Festival 2018 Survival Guide

Posted on March 14, 2018 by Sean Greco

Ultra Music Festival is a 3-day EDM musical experience like no other. What started as a one-day festival in Collins park was named “The #1 Festival in the World” by DJ Magazine in 2016/2017. Ultra has grown to have festivals in countries across the globe, but Miami is still center stage. In 2018, Ultra Music Festival is celebrating their 20th anniversary by bringing it’s biggest show ever to Bayfront Park.

Ultra Music Festival Dates & Hours –

March 23, 24, 25 – 2018

Friday 4PM – 12AM
Saturday 12PM – 12AM
Sunday 12PM – 11PM

Ultra Music Festival Location –

Bayfront Park

301 North Biscayne Boulevard

Miami, Florida, USA 33132

Ultra Music Festival Tickets –

General Admission Tickets:

General admission Ultra Music Festival tickets start out at $299.95 for the 3-day event and go up in tiers as the event approaches. The early you buy your ticket, the more money you can save. There are no single-day ticket options. General admission tickets to Ultra Music Festival 2018 are already sold out.

If dropping $300 on a ticket is not in your financial plan, there is also a payment plan option that allows you to break it down into more feasible chunks for the trade-off of a higher overall ticket price. In 2018, the payment plan added $100 to the ticket price but allowed ticket purchasers to pay it off in 3 monthly payments, due by December 1, 2017.

VIP Tickets:

VIP Ultra Music Festival Tickets start at $1,249.95 for the 3-day event and they go up in tiers like the general admission tickets. There are no single-day VIP ticket options. In 2018, the VIP ticket gets you access to 6 VIP bars, 3 VIP viewing areas, and a separate festival entrance to avoid the lines.

Ultra Music Festival Lineup –

ultra music festival

Some of the 2018 Ultra Music Festival headliners that have been announced so far include Afrojack, The Chainsmokers, David Guetta, DJ Snake, and Steve Aoiki. In addition, Eats Everything, Seth Troxler, Skream, and Jackmaster are teaming up under the name of J.E.S.u.S and should be bringing something really special to the mix. See the up-to-date full lineup here.

There are approximately 8 stages at Ultra Music Festival, and upwards of 100 artists performing. The stages all have different names and experiences to offer. Check out the legendary Arcadia Spider stage.

The “Ultra Worldwide” Stage plays homage to the worldwide events, while “UMF Radio” honors the weekly radio broadcast in 64 countries. The rest of the stages will be dedicated to performances by different artists at various times.

There is always new music to see at Ultra Music Festival. You have the possibility of seeing new music from your favorite artists if they chose to debut their new work as many have historically. People also often report that their favorite performances were from artists they had never even heard of before, so make sure to check out the entire event! Oh yeah, and don’t forget the surprise appearances that have been promised this year.

Ultra Music Festival Lodging & Travel –

There are no overnight accommodations on the Ultra Music Festival grounds, so you will need to find accommodations in a hotel or Airbnb near the venue. One of the best ways to save money is to secure lodging near the Miami-Dade MetroRail system so that you can take the train to and from the festival. After connecting at Government City Station, you can take the free Metromover to Biscayne Park.

Driving to the festival is not recommended as traffic gets very congested. If you are not staying within walking distance of the MetroRail, there is parking available at the MetroRail stations or at various garages in downtown Miami. Note that you should not attempt to walk to or from the festival via the MacArthur Causeway. This is a highway, there are no sidewalks, and it would be extremely dangerous for pedestrians.

What To Bring To Ultra Music Festival –

Comfortable/Creative Attire

Illuminated or glowing jewelry or customs are certainly allowed! You can also bring flags and banners as long as they aren’t corporate or company branding. No hard poles, sticks, or totems are allowed. Don’t forget your sunglasses and hat to help protect you from the Miami sunrays!

Your ID

You must be 18+ years old to for general admission and 21+ years old for VIP.

Spending Money

You may want to buy food, beverages, or merchandise while at Ultra Music Festival.

Cell Phone

Who goes anywhere without this anyway, right? The festival is large so you may want your cell phone to communicate with friends if you get separated.

Cameras

If you aren’t satisfied with your cell phone camera, you can bring in other non-professional cameras, GoPros, camera straps, etc.

Necessary Bags

You aren’t going to want to be weighed down, so only bring bags if you really need them. This helps to expedite the check-in process too. All bags must be clear, and they cannot exceed 13” x 17”. Plastic, vinyl, or PVC are acceptable. You can also bring fanny packs, and small clutch bags.

Hydration Packs

You are going to want to stay hydrated! These cannot be backpacks and they must be empty upon entry. They can be filled at the water stations on the festival grounds.

Earplugs

It can get pretty loud, and when it comes to protecting your ears you are better safe than sorry!

There is a decently long list of items that are prohibited at Ultra Music Festival. Make sure you take a look at this list before heading over to the festival to make sure you are in compliance.

On-Site Amenities at Ultra Music Festival –

Food and Drinks

There are plenty of food and beverage options on the festival grounds. It’s a good thing, because once you leave for the day, there is no re-entry until the following day. Check out the site-map to send yourself in the right direction for food and drinks.

Bathrooms

The bathrooms at Ultra Music Festival are outdoor port-o-potties. The closest of the facilities can get pretty overused, which is no fun. Your best bet is to walk to the further away bathroom areas, and go for the port-o-potties at the back to find the facilities that have not seen as much traffic.

Water Fill Stations

Water fill stations are located in multiple areas around the venue. Make sure to bring a hydration pack and fill up on water frequently. With the sunshine and the dancing and the Miami heat, you are going to need to stay hydrated!

ATMS

ATMs are located on-site in case you are in need of cash.

Lost and Found

If you lose an item, a lost and found is maintained at the merchandise tent, and at the Box Office. If you are to find a lost item, turn it into a Security Officer, Police Officer, Fire Rescue personnel or Ultra Music Festival staff person so it can make its way there and be found by its rightful owner.

At Properties & Paradise, we love Miami and its lively culture. We are here to assist you in all of your Miami real estate needs. If you are interested in owning a vacation home, purchasing a primary residence or an investment property, or hiring a property manager, reach out to us today!

0 Why Hire A Property Manager?

Posted on March 5, 2018 by Sean Greco

Hiring a property manager to assist with landlord responsibilities can be very impactful. This is particularly true for owners of nonlocal or international real estate investments. When it comes to effective property management, there is just no replacement for easy access to your investment. That is why at Paradise Care we work specifically with clients who have properties near our office in Miami Beach. If you are looking to answer the question of “why hire a property manager?”, it comes down to saving you time and stress, and protecting your investment in major ways, many of which require a physical presence.

Why Hire A Property Manager?

Especially for International and NonLocal Real Estate Investments

why hire a property manager

Finding and Screening Tenants

At Paradise Care, we handle all of the marketing for available rental units, as well as the tenant screening and selection. Handing this process off to a property manager means finding higher quality tenants for properties. This leads to better tenant retention, aka less of a chance of a headache because tenants that pass our screening process are less likely to default or require eviction. It also means finding these high-quality tenants faster than landlords might otherwise be able to on their own.

Experience with the Local Real Estate Market

Working with a local property manager means working with someone who understands the local real estate market. This is especially true at Paradise Care because we are a division of RE/MAX Paradise, a long-standing Miami Beach real estate agency. Local real estate market knowledge is important because it helps make sure that properties are priced correctly. It also means that property managers are up to date on local real estate laws and regulations to make sure that all properties are in compliance, and to help out if an eviction was forthcoming.

Repair and Maintenance Work

When it comes to repairs, or even just standard maintenance work for rental properties, knowing good local companies that you can trust can make all the difference. Property managers know who to go to for high-quality work at a fair price. Working with a company that is local to your property means capitalizing even further on their knowledge of and connections with the local housing repair and maintenance world. In addition, hiring a property manager takes all of the responsibility for repair and maintenance work off of the landlord’s plate! No more inconvenient calls about a clogged drain or a broken HVAC unit. It gets handled for you, the right way.

Tenant Communication

Hiring a property manager means that you no longer have to handle tenant communication. Your tenant’s needs can be addressed through your property manager. If you are working with a local property manager, you have the added benefit of your property manager being able to handle tenant communication in-person. Local property managers can also perform check-ups on investment properties if need be.

Rent Collection

Hiring a property manager means saying goodbye to the hassle of rent collection. Your property manager can help get your rent payments on-time, and they can provide more options to make the process more convenient for your tenants. With a local property management company, rent can be paid in-person, or possibly online through property management software. Your property manager can also check in with tenants if rent payment is past due.

As you can see, there are many benefits of working with a property manager, especially one that is local to your real estate investment. If you want to learn more about how a property manager can help you, contact us today or get a free quote from Paradise Care for your Miami Beach property management.