Posts Tagged ‘Rentals’

As part of the comprehensive plan a one month rental restriction was passed one year ago for properties in R1 area in the city of Holmes Beach on Anna Maria Island. Many of Island Real Estate rental property owners ask me how could this happen? Apparently it was discussed in a 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 tough for locals to complain about not having a voice in city decision making. I have to admit I am a local and more importantly what will I learn from this experience? More on victimization later.

As the General Manager of Island Real Estate I often estimate potential rental income for seasonal rentals on Anna Maria Island. I feel very confident predicting that the one month restriction will reduce gross rental income for properties affected by more than 40%. A typical 4 bedroom home with a pool on a canal should generate at least $70,000 annually. Gross income generated with a one month rental restriction….Maximum $42,000. That’s a large hit for Anna Maria Island owners that are using income to defer debt service, insurance, and property taxes.

What impact does the one month rental restriction have on property values in the Holmes Beach City R1 areas? The first question that needs to be asked is what do future buyers want? Rental income or fewer transient “neighbors” throughout the year? I estimate at least 70% of potential Anna Maria Island, FL buyers request specific information regarding rental income. Many do not rent their home after purchasing but they take great care in understanding “what if” scenarios. Understanding options is just good business sense. So what impact will the Holmes Beach rental restriction have on property values in R1? I conservatively estimate between 15-25% of their market value will be lost.

But wait….Thanks to David Zaccagnino and a few of us that attended the latest Holmes Beach city meeting on Tuesday, August 12th , the one month rental restriction will be discussed in a future Holmes Beach city meeting. David the “lone commissioner” convinced the mayor and remaining commissioners to revisit the comprehensive plan. Thank you Holmes Beach City! Sandy Haas-Martens informed the council that the vote needed to await the return of several residents in the R1 zones. So, it appears we will have our opportunity to discuss the rental restriction around October-November of 2008.

If you are a private home owner of the affected area don’t be a victim. Let your Anna Maria Island Real Estate

Direct Gulf Front

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 R1 one month rental restriction.

I do not have a personal property in the area affected however I do support the effort to overturn the one month rental restriction. Of course all the above numbers are estimates and are not guaranteed. My main goal in November of 2008 is for the silent majority R1 property owners to be heard. If you entrust me with your opinion I will commit regardless of your support to communicate all information to the Holmes Beach City.