Holmes Beach R1 Month rental Restriction – UPDATE
As part of the comprehensive plan a one month rental restriction was passed about one year ago for properties in R1 area in the city of Holmes Beach. Many of Island Real Estate property owners ask me how could this happen?
Anna Maria Vacation
Apparently it was discussed in one meeting with little to no communication to the public. I think it is important to mention the public is invited to all meetings so it’s pretty tough for locals as me to play the “victim” role. More on victimization later.
As the General Manager I often predict potential rental income for seasonal rentals on Anna Maria Island. I feel very comfortable predicting that the one month restriction will reduce gross rental income for properties affected by more than 40%. A typical 3 bedroom home with a pool on a canal should generate at least $50,000 annually. Gross income generated with a one month rental restriction….Maximum $30,000. That’s a big hit for owners that are using income to defer debt service, insurance, and property taxes. Many owners are using their rental income to stay out of trouble with their banks.
What impact does the rental restriction have on property values in the R1 zoning areas? The first question that needs to be asked is what do future buyers want? Rental income or fewer new “neighbors” throughout the year? I estimate at least 70% of incoming buyers request specific information regarding potential rental income. Many do not rent their home after purchasing but they take great care in understanding “what if” scenarios. This is good business sense. So what’s it going to cost owners in R1? I would estimate between 15-25% of their value.
Fantastic Private Pool at 2916 Avenue E
But wait….Thanks to David Zaccagnino and a few of us that attended the latest Holmes Beach meeting on Tuesday, August 12th. David the “lone commissioner” convinced the mayor and remaining commissioners to revisit the comprehensive plan and open the rental restriction discussion to the public. Sandy Haas-Martens convinced the council that the vote needed to await the return of several vocal residents in the R1 zones. So it appears we will have our opportunity to discuss the rental restriction around November.
If you are an owner of the affected area don’t be a victim. Let your Anna Maria Island Real Estate professional know whether you support the one month rental restriction. If you want to be sure your voice is heard… contact me directly as I will continue to play an active role in the Holmes Beach rental restriction. Larry@IslandReal.com or visit our website at http://www.islandreal.com/ or contact us by telephone.
Note: The pictures are of a Holmes Beach Private home that is NOT in the R1 area. The fantastic new 5 bedroom pool home is just one short block to the Gulf of Mexico. For more information visit Island Real Estate’s vacation rental
website and search for Coral Cottage.
