Maintenance costs of properties
Take into account the maintenance costs of properties…
Because if you are investing in Florida, one of the best real estate markets in the world, you will avoid surprises and ensure that you get the income you need for the proper maintenance of it.
Here are some of the main maintenance costs of properties in Florida
Real Estate Taxes
Taxes are levied on properties by state and local governments, as they provide diferent services, then with the funds generated from real estate taxes, they pay part of those services.
Florida real estate tax rates are implemented at rates in the thousands, which is 1/10 of a percent, this equates to $1 in taxes for every $1,000 in home value, the good news is that the average property tax rate in Florida is 0.83%, which is below the national average of 1.07%.
The insurance pays for unexpected losses and damage, such as fire or theft, and if you have a mortgage, the bank requires you to insure your property to protect against future losses.
Insurance usually covers structural damage and some include the condo fee, and some of them also cover civil liability against damages to third parties.
On the other hand, depending on the location and value of the property, we have to pay additional fees to obtain other types of coverages.
Contracted property services
To maintain the comfort and convenience of the property we have to contract property services, and they range from pest control, gardening, swimming pools, cleaning, television, cable services, cameras and telephony, among others.
There are many companies that offer these professional services, so we can hire them per year and to the highest bidder, so we will obtain better economic benefits and coverage.
Public services or utilities
These are the basic services that every property has, that is why we must pay for them, the five main ones are (water, electricity, gas, sewage and garbage), hence each municipality or county is responsible for public services.
The value of the utilities must be paid according to the usual consumption. The owner or the tenant will be responsible for paying them, as the case may be.
The property tax rate sometimes includes certain services, and in other cases the HOA “Homeowner’s Association” fee includes them.
Condominium Fee (HOA) “Home Owners Association”
We pay this fee to cover maintenance and other expenses necessary for the condominium, but some of these expenses are related to the common good or the interest of the association.
The value to paid per condominium varies according to the property, its facilities and even the luxuries it possesses. This fee some times includes costs as television, internet, water, sewage and others
Repairs and maintenance
Any property, new or old, will need upgrades, repairs and maintenance, and therefore, everything from appliances to the most expensive items such as roofs and boilers can cost a lot of money.
That’s why it’s so important to set aside money for when it’s needed, so you have the budget you need.
Our best advice is to perform regular and periodic maintenance, this way we will prolong the useful life of the appliances and other systems of the property.
Also schedule the inspection and cleaning of the parts of the house and make the necessary changes.
Consequently, by performing these small tasks, we will have to make fewer replacements of parts or units.
So we believe that this should always be the priority, since it will always be cheaper to repair failures than to replace the equipment.
Hiring professionals for these services, it is possible to keep the property in optimal conditions and without unnecessary worries. This is indispensable if we do not stay long in the house or if we have to travel.
This allows us to rent the property, and have the peace of knowing that it is in good hands.
And it is also good to know that some of the services included in the management are:
– Periodic visits to the property
– Managing correspondence
– Accompanying and supervising the cleaning
– Handling of different services (repairs, maintenance, installations, etc.).
– Reception of tenants, among other things.
These are the main maintenance expenses of a property in Florida. Others may be necessary depending on its conditions or what you want to do with the property.
That is why we believe that we may also need to spend on:
– Advertising expenses
– Legal fees
– Turnover expenses
– Deposit Replacement Reserve
And not less important, take into account the closing costs of the purchase of the property.
At JMK Group we specialize in providing you with real estate advice in Florida. If you want to build, repair, sell, buy or manage any property, please contact us.
605 Lincoln Rd Suite 250 Miami Beach FL 33139