Key West

Hi Friends!
A few sellers and another REALTOR® called me this week about what happens after foreclosure.  I also went to 2 panel discussions this week with experienced bankers and mortgage lenders.  I'm sharing so you can provide better guidance to your clients and advise your clients to contact their real estate accountant or attorney.  I'm a REALTOR® and not an accountant, attorney or tax professional.  This is complicated and requires professional assistance. 

With that said, every mortgage and lending professional told the audience that all people who had their homes foreclosed would get a 1099 for the forgiveness debt and would owe taxes to the IRS. 

It was not worth arguing with experts.  It is worth letting sellers who are affected by foreclosure know and my fellow REALTORS® who might not know, the truth.

Cancellation of debt income is NOT always taxable, no matter what the oldest and most experienced mortgage broker tells you.  There are a few exceptions.  IRS Exclusions allow insolvent borrowers to offset income from cancellation of debt if their liabilities exceed their assets.  Two exclusions are:

•1.      Cancellation due to bankruptcy.  Debt cancelled in a bankruptcy case is NOT included in gross income in the year cancelled. 

•2.      Taxes are not due on the 1099-C when you are insolvent.  You are insolvent when your liabilities exceed your assets before the cancellation of debt.  Debt cancelled when you are insolvent is excluded from gross income up to the amount by which you are insolvent. 

When debt is forgiven the money is reported as income on a Form 1099-C (Cancellation of Debt) the same way that income is reported on a W-2.

The IRS treats a foreclosure like a sale.  As with gain from a sale, some or all of a gain of a personal residence may qualify for exclusion from income.

To figure tax on forgiven debt:

•1.      Take the total loan amount your seller owes for the property.

•2.      Take the fair market value of the property from the 1099 (box 7).  This normally would be the amount bid at auction or accepted by the bank in a sale.

•3.      Subtract line 2 from line 1.  If the amount is less than zero, enter zero (usually same as box 2).  Enter it on line 21 (other income on a 1040). 

To figure gain from the debt forgiveness:

•1.      Take the fair market value.

•2.      Take your adjusted basis which is the purchase price plus improvements.

•3.      Subtract line 5 from line 4.  If zero, enter zero.

The amount on line 6 is your gain.  If your seller has lived in the home for 2 years during the last 5 years they can exclude up to $250,000 if they are single and $500,000 if they are married and filing jointly, just like in a regular sale.

If the seller ever used the home for business or rented it out the "relief" may be completely unavailable or the "relief" may be limited.

A seller should check the 1099-C they receive from their lender.  They should document everything they do.  Keep a log of all conversations with the name, date and time of the person talked to or better, WRITE the lender (return receipt requested) if any information on the form is incorrect. 

Check the amount shown as debt forgiven in box 2 and the value listed for the home in box 7.  The lender will send the 1099-C to the IRS.  The IRS will contact the seller if the 1099-C conflicts with what the seller claims on their income tax return.  The seller should call the IRS immediately after they receive a notice from the IRS.  The number to call the IRS will be on the notice.  If the seller owes taxes they should request a payment agreement (Form 9465). 

If a seller's gain exceeds their deduction the taxable amount is put on Schedule D (Capital Gains and Losses).

For help with selling a home that is headed for foreclosure, or buying a foreclosure home in the Florida Keys or Key West call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

This could save you some huge headaches.  Better to prevent than correct, right? 

I just went to an excellent presentation by a real estate attorney who is on the Florida FAR BAR committee.  He told us about the changes this year.  He gave us some great insight that I'll share with you!

The attorney reminded us of our affirmative duty to confirm a deposit.  Our failure to confirm that a deposit has been received and is in escrow is a violation of FREC rules. 

The mention of points that was on line 37 of last years FARBAR contract has been removed.  The attorney said that he pushed to get rid of all of the private information about the terms that the Buyer will secure from the lending institution because it's none of the Seller's business.  He said the REALTORS® on the committee disagreed and fought hard to keep the points on the contract.  The attorney did NOT MENTION that this is a tie-down for the Buyer so that they cannot cancel or withdraw if the points are unacceptable.  Depending upon how you look at it this could hold more deals together.  It may also put a Buyer in a position to loose their deposit or get sued for breach of contract.  Remember, I'm NOT an attorney I'm just having a conversation with you through my blog!

There is a change on line 40 and 41, "Buyer authorizes the mortgage broker(s) and lender(s) to disclose information regarding the conditions, status, and progress of loan application and Loan Approval to Seller, Seller's attorney, real estate licensee(s), and Closing Agent.  Wow!  That feels like an invasion of privacy, but the clause is clearly intended to help more deals close.  It's funny that the attorney said it was none of the Seller's business what points a Buyer was going to pay, but he wants to have everyone involved have the ability to check on the progress of the deal.  This also seems like a good thing that should hold more deals together and let us know sooner which ones are headed for trouble.

There is a change on line 42 and 43.  "If Buyer does not deliver to Seller written notice of Loan Approval by Loan Approval Date, Seller may thereafter cancel this contract by delivering written notice ("Seller's Cancellation Notice") to Buyer, but not later than seven (7) days prior to Closing.  The attorney did NOT mention that the contract used to say EITHER party could cancel the contract with 7 days notice prior to closing.  I mention that because if you didn't realize it you could find yourself in a sticky situation with a Buyer in the coming year.

There is another addition on line 43 and 44.   "Seller's Cancellation Notice shall notify Buyer that Buyer has three (3) days to deliver to Seller written notice waiving the Financing contingency, or the Contract shall be cancelled."  The "or the Contract shall be cancelled" is new.

There is a change on line 45 and 46 under Deposit(s).  It now reads, "If Buyer has used reasonable diligence (it used to say "due diligence") but does not obtain Loan Approval by Loan Approval Date, and thereafter either party elects to cancel this Contract, the deposit(s) shall be returned to Buyer.  The attorney did NOT MENTION that the old Contract said, "If Buyer does not deliver written notice to Seller by Loan Approval Date stating Buyer has either obtained Loan Approval or waived the financing contingency, then either party may cancel this contract by delivering written notice ("Cancellation Notice") to the other, not later than seven (7) days prior to Closing." 

There is more new wording on line 46 and 47.  "If Buyer obtains Loan Approval or waives this financing contingency, and thereafter the Contract does not close, then the deposit(s) shall be paid to Seller, provided however, if the failure to close is due to: (i) Seller's failure or refusal to close or Seller otherwise fails to meet the terms of the Contract, or (ii) Buyer's lender fails to receive and approve an appraisal of the Property in an amount sufficient to meet the terms of the Loan Approval, then the deposits shall be returned to the Buyer.  Wow again!  That part about the appraisal is pretty vague. 

The old Contract used to say, "If the Buyer has used due diligence and has not obtained Loan Approval before cancellation as provided above, Buyer shall be refunded the deposit(s).  Unless this financing contingency has been waived, this Contract shall remain subject to the satisfaction, by Closing, of the conditions of Loan Approval related to the Property."  The attorney did NOT mention the deletion of the part about the Contract being subject to Loan Approval.  Now, it's only subject to the appraisal which is very subjective as we all know.  And, $10,000 to a Buyer and a Seller can represent a different definition of a lot or a little bit of money.  It seems to me that this change should hold more deals together but could cause buyers to loose a deposit or get sued for breach of contract.  Again, I'm NOT an attorney but I do think about the Buyers I work with.  I've always told my Buyers that the As Is Contract is fair and equitable to both parties.  These changes seem to favor a Seller.

There has been a change on line 59 under Closing Date.  The new Contract now says, "In the event of extreme weather or other conditions or events constituting "force majeure", Closing will be extended a reasonable time until (i) restoration of utilities, and other services essential to Closing, and (ii) availability of Hazard, Wind, Flood or Homeowners insurance.  If such conditions continue more than 14 days (if left blank) beyond Closing Date, then either party may cancel this Contract."  That's a long time!  Again, it seems like this would help more deals close. 

The old Contract said, "If a Buyer is unable to obtain Hazard, Wind, Flood or Homeowners insurance at a reasonable rate due to extreme weather conditions, Buyer may delay Closing for 5 days after such coverage becomes available."  The attorney said that if someone could not close within 14 days there was probably nothing left in the Keys to close.  The attorney did NOT mention that this would keep the Buyer under Contract and would eliminate an "out" to cancel the contract due to the elapse of the 5 day delay in restoration of services.   This should also hold more deals together.

There has been a change under Risk Of Loss, lines 210 through 215.  The attorney said he wanted to change the amount to 3%.   He wanted 3% so Buyers couldn't cancel unless the damage exceeded 3%.  REALTOR committee resistance kept the maximum damage at 1.5%.  The new Contract has big changes and reads, "If, after the Effective Date, the Property is damaged by fire or other casualty ("Casualty Loss") before Closing and cost of restoration (which shall include the cost of pruning or removing damaged trees does not exceed 1.5% of the Purchase Price, cost of restoration shall be an obligation of the Seller.  Closing shall proceed pursuant to the terms of this Contract, and if restoration is not completed as of Closing, restoration costs will be escrowed at Closing.  If the cost of restoration exceeds 1.5% of the Purchase Price, Buyer shall either take the Property as is, together with the 1.5% or receive a refund of deposit(s) thereby releasing Buyer and Seller from all further obligations under this Contract.  Seller's sole obligation with respect to tree damage by casualty or other natural occurrence shall be the cost of pruning or removal."  THESE ARE BIG CHANGES!  The Seller is not obligated to replace any trees or landscaping.  Your Buyer could be seriously affected by this change.  Keep this in mind when you have a Buyer who is purchasing a property with extremely valuable mature palm trees. 

The old contract simply said, "If the Property is damaged by fire or other casualty before Closing and the cost of restoration does not exceed 1.5% of the Purchase Price, cost of restoration shall be an obligation of Seller and Closing shall proceed pursuant to the terms of this Contract with restoration costs escrowed at Closing.  If the cost of restoration exceeds 1.5% of the Purchase Price, Buyer shall either take the Property as is, together with the 1.5% or any insurance proceeds by virtue of such loss or damage, or receive a refund of deposit(s), thereby releasing Buyer and Seller from all further obligations under the Contract."  These are major changes.

There is an addition to Seller's Disclosure lines 260 and 261.  A number 4 has been added.  The addition is, "Seller has no knowledge of any repairs or improvements made to the Property without compliance with governmental regulation which have not been disclosed to Buyer."  This could come into play at a Code Enforcement hearing before the judge.  I've been in court with a Buyer 3 years after a sale when the judge ruled that the Seller would pay for correction of code violations.

I hope this helps you provide better service to your clients and helps keep your life simple by decreasing potential pit falls.  If you learn about anything that impacts the new FARBAR As Is Contract please let me know!  Call me with your questions about real estate in Key West or the Florida Keys!  You can reach me by calling (305) 522-1398 or e-mailing me at MayaMarieThomas@Hotmail.com. 

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
www.ShowcasePortfolioProperties.com 

On July 3, 1823, 22 years before Florida become a state.  Monroe County was incorporated and became the sixth county in Florida.  Key West was the county seat and the only settlement in Monroe County. 

On March 3, 1845 Florida became the 27th state.  Monroe County is now divided into four parts.  The Upper Keys (7 islands), the Middle Keys (12 islands), the Lower Keys (20 islands) and Key West.  There are 5 incorporated communities in Monroe County; Key West (1828), Key Colony Beach (1955), Layton (1963), Islamorada (1998) and Marathon (2000). 

Monroe County is 1,144,800 total acres.  The 40 inhabited islands make up just 65,500 acres or 5.3 percent of the total land mass.  The federal and state government owns most of the land and will keep it for conservation purposes.  This land will never be developed. 

210,000 acres, or 34% of developable land in the county, is vacant.  10% of that 34% is divided into 15,000 to 20,000 vacant lots that are located in the Everglades National Park and Big Cypress National Preserve.

To learn more about the Florida Keys can call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com. 

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
www.ShowcasePortfolioProperties.com 

The Florida Keys are made up of 40 inhabited islands.  Native Indians were the first settlers in 1530 AD.  A Spanish fleet wrecked in the Keys in 1733, yet until 1763 the Keys were "Isles de Norte Havana" (North Havana). 

In 1815 Juan Pablo Salas was given Key West in a Spanish Land Grant.  On January 19, 1822 Juan Pablo Salas sold Key West to John Simonton for $575 in a Havana cafe. 

Piracy, slave ships and salvaging wrecked ships were some of the first successful businesses operated in the Keys.  In January 1828 the first newspapers, the Key West Register and the Commercial Advertiser began circulation.  The Key West Gazette followed in 1831.  In 1834 the Enquirer began circulation.  The Citizen did not begin circulation until the 1900's.

Key West was incorporated in 1828 and became very powerful because of the Federal Wrecking Act.  The act made Key West a Port of Entry with an Admiralty Court.  In 1829 a U. S. Post office was opened.  A public library opened in 1859 and in 1870 a public school opened.

By 1830, the population of Key West was 517.  The sponging industry began in 1840.  On March 3, 1845 Florida became the 27th state.

For help buying or selling in the Florida Keys call me at (305) 522-1398 or e-mail me at Maya@RealEstateFloridaKeysInfo.com. 

Maya M. Thomas
REALTOR®
http://www.showcaseportfolioproperties.com/
http://www.myspace.com/topkeysrealtor

Key West is now 2,600 acres.  In 1829 Key West was just 258 acres and Key West was mapped out into a town of 64 blocks.  Most of the area of Key West was ocean that was "filled" to create land.  This land "fill" explains why "Old Town" and "New Town" have those names. 

The military controls about 25% of Key West.  Key Largo is the largest island with 22,000 acres.  Big Pine is more than double the size of Key West with 6,500 acres.  Cudjoe is closer to Key West's size at 3,800 acres, as is Saddlebunch at 3,700 acres, Boca Chica at 3,500 acres and Sugarloaf at 3,200 acres.  Stock Island is smaller 1,800 acres.

For more information about Florida Keys history, all of the islands that make up the Florida Keys and buying or selling in the Florida Keys call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com. 

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
www.ShowcasePortfolioProperties.com 

Good news!  I'm working with a buyer that just relocated from Washington D. C.  She introduced me to a 203(K) loan.  It's perfect for this market.  I want to share with you what she shared with me! 

My seller's feel like they have been drinking bleach when they price their home.  My buyers realize that this market IS a great buying opportunity, but feel that prices are still way too high.  A wonderful couple I'm working with finally has a down payment we can work with.  They have sacrificed for 2 years.  They wonder why they've been renting for 9 years.  They KNOW that they can handle the responsibility of a mortgage.  They now know the difference between necessity and desire. 

Just two years ago these same buyers "knew" they would never own a home in Key West.  Now, in the post-bubble real estate market they CAN!  EXCEPT that the most affordable homes, just like every home on the market since the beginning of time, have problems that need to be fixed.  Seller's are strapped and "upside down" and can't pay for them.  What's an eager buyer to do?  The 203(K) loan helped us to make an offer to a seller and make the needed improvements they need to provide a safe home for their children. 

Here's the scoop:  The U. S. Department of Housing and Urban Development has a Section 203(K) loan program.  Money is available to fix up single family residential properties and multi-unit residential housing.  A condo won't qualify.

The loan is similar to a construction loan.  You can get it in conjunction with your regular 1^st mortgage and get periodic cash disbursements for improvements.  A buyer can also get the just the 203(K) loan.  Investors qualify too.  Investors need 15% down.  Homestead property need 3% to 5% down. 

For help finding an affordable home that fits your budget call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.   Good luck and happy house hunting!

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
www.ShowcasePortfolioProperties.com 

Ask anyone who has been to Conch Republic to name 5 things to do.  Not one of those 5 things will be visit a house of worship!  Not any of the people I asked, anyway.

The city of Key West has 38 houses of worship.  Because no one would believe me and because someone reading this might like to visit a house of their faith the next time you visit Key West, I figured I'd save you the time of looking in the phone book or in Google because most of them aren't there.

(This is where I inserted my quick correction [Many thanks to my smart friend who rescued me from my mistake with his comment below!]

2003 population of Key West was 25,811.  The island is 2 x 4 miles, or 8 sq miles.  Since there are 38 houses of worship there is 1 church per 680 people.  For questions call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com or visit my site at http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

My past life was the hotel industry.  My first job when I was 12 years old was cleaning cottages.  It all culminated 17 years later as a Sales Manager and Director of Sales for the 2 of the largest hotels in Key West. 

I still love the hotel industry and always will.  I want to share with you a study that is also useful in the real estate business.  VFM Interactive and Omni Hotels studied the impact of visual media on hotel bookings. 

The study wanted to know whether consumers who saw virtual tours were more likely to book a reservation.  The study tracked nearly 130,000 unique consumers over 34 days.  The study confirmed that viewing a tour significantly increases the likelihood of booking.  Consumers were 67% more likely to book when they saw a virtual tour.  They refer to this as the "look-to-book ratio."

No surprises here.  They figured out what many of us have known for years!

For help buying or selling resort and hotel properties in Key West and the Florida Keys call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com 

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

Funny the things that come up the longer you work in real estate....

I have a new buyer that was inspired to buy because his landlord would not allow him to hang a flag outside his door.  The landlord is a Jehovah's Witness.  The buyer is in the military. 

Regardless of a persons job or religious preference a landlord can not prevent a tenant from hanging a flag according to the Florida Landlord Tenant Law.  § 83.67, Prohibited Practices says, "A landlord shall not prohibit a tenant from displaying one portable, removable, cloth or plastic United States flag, not larger than 4 and ½ feet by 6 feet, in a respectful manner in or on the dwelling unit regardless of any provision in the rental agreement dealing with flags or decorations."

A landlord "who violates any provision of this section shall be liable to the tenant for actual and consequential damages for 3 month's rent, whichever is greater, and costs, including attorney's fees."

It's easy to have innocent intentions and do something illegal.  For help staying out of trouble in the Florida Keys and Key West call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com. 

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

So you decided to buy!  Hooray!  It's exciting.  To make the process as painless as a filling after you've had a novacaine shot I've made this for my buyers and I'll share it with you!  This is a list of the potential paper work your buyer may need.  I hope it helps you help your client get their file together before they meet with their lender so they only have to make one trip.  Everyone likes to save time, right?!

We've all heard people talk about "Buy low and sell high!"  In a few years you'll have a wonderful story to share with everyone about what a great deal you got not only on the real estate, but on the FANTASTIC interest rate!  If you have questions call me at (305) 522-1398 or
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtorGood luck and CONGRATULATIONS! 

If you are an experienced investor in the area and know exactly what you want to buy and are very familiar with sales data you can shop without a Buyers Agent.  If you plan to look at few properties and are not completely sure of the value then I recommend a Buyers Agent.  A Buyers Agent can share actual sales data with you so that you can compare your favorite property to the most recent sales.

The Buyer's Agent should give you a Comparative Analysis on any property that you are interested in making an offer on.  I like to look at the last 30 sales to get an accurate ratio of list to sale price percentage to use for making an offer.  30 nearby homes whether they are comparable is necessary because the ratio is what's important because it gives a picture of the market.  Then find the 3 most comparable properties to analyze for your offer one more time.

The Buyer's Agent can prepare the CMA with the sold prices.  You want to know the List to Sold Price Ratio.  List to Sale Price Ratios give you a good starting point for an offer.  If you love the home and it is priced good compared to the other available homes check the list to sale price ration. 

Having a Buyer's Agent represent you provides you with a distinct buying advantage.  Professional services provided:

•ü   Arrange property showings

•ü   Assist with financing

•ü   Provide accurate information

•ü   Explain forms and agreements

•ü   Monitor from contract ratification to closing

•ü   Provide you advice and counsel

•ü   Keep your bargaining and financial position confidential

•ü   Fully promote and protect your interest

•ü   Negotiate the best price and terms for you

•ü   Provide all information concerning each property considered for purchase

•ü   Pass on information that may enhance your negotiating position

•ü   Write the offer with your goals and best interest in mind

•ü   Exposure to listed and unlisted properties.

Remember not to reveal any motivation to any home owner or any agent that is not your own agent.  And definitely do not tell anyone that you are in a hurry.

For expert guidance investing in real estate in Key West and the Florida Keys call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

Real Estate Statistics March 20, 2007 to September 30, 2007

Between March 20, 2007 and September 30, 2007 the Key West Association of Realtors^TM tallied 649 real estate transactions from Key West to Key Largo.  The average sale price was $740,453, the median sale price was $563,000 and the average time on the market was 7.4 months.  The most expensive sale was an island priced at 17 million that sold for 6.5 million in June 2007.   For answers to your statistical real estate questions call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com http://www.myspace.com/topkeysrealtor

First, I'm not an attorney, but I understand what it's like to have your seller tell you, "I want the tenant out NOW!"   What do you do?

Can the owner turn off the utilities, throw the tenant's things out on the street, change the locks, and give a new tenant the keys?  Nope.  Ya gotta follow the rules.  Thank goodness they are simple!

If you've already given the proper oral and written notice you can give the tenant a Notice to Quit and Vacate.  If the tenant holds over after the expiration of the lease without permission you can give the tenant a Notice to Quit and Vacate.  If the owner has terminated the rental agreement for any of the reasons allowed under the Landlord and Tenant Act and the tenant does not move, you can give the tenant a Notice to Quit and Vacate.

If you want to evict the tenant for non-payment of rent, the owner or the agent must serve the tenant with a written notice allowing 15 days, excluding weekends and legal holidays to pay the rent or move out.

•1.  Go to the court house where you file public records.  Ask for a 15-day Eviction Notice AND a Complaint for Eviction (Filed by Agent of Landlord).  Send both papers to the owner for a signature.

•2.  You must give the tenant 15 days notice prior to the end of the rental period.  If they pay rent on the 20^th you must give notice to vacate no later than the 5^th or you have to wait another month before they are required to leave.  Be sure to write the correct date on the Notice to Quit and Vacate.

•3.  Post or deliver the notice with a witness.  Your witness must sign the notice. 

•4.  If the tenant fails to vacate the premises you need to file the Complaint for Eviction and the original Notice to Quit and Vacate at the County Court House.

To get possession of the property, the owner or the agent must file suit in county court.  Use the 2nd form that your seller already signed that's called a Complaint For Eviction.  Filing the Complaint is how you file suit.  It says at the top, "IN THE COUNTY COURT IN AND FOR MONROE COUNTY, FLORIDA."  It lists your seller's name (plaintiff) vs the tenant (defendant).  You must give the court a copy of the 15 day notice. The tenant has 5 days, excluding weekend and legal holidays, to respond in writing to the court.

If the tenant does not respond a judgment court will issue a Writ of Possession to the Monroe County Sheriff Office and the tenant will have 24 hours notice prior to eviction.

Florida law does not allow the owner or agent to personally eject the tenant, or move the tenant's belongings into the street.  The owner is not allowed to shut off the utilities, water, gas, electricity, even if the service is in the Owner's name.  The owner can not change the locks or use any "boot lock" or similar device.  The owner can not remove the outside doors, locks, roof, walls, or windows.  The owner can not remove the tenant's personal property from the dwelling unit unless proper legal action has been taken.

For help selling your rental property in Key West or the Florida Keys call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

If next years lease is the same as last years lease, do I need to put it in writing? 

Any lease may be extended by mutual agreement of both parties under the old terms (rental period, rent amount, rent due date, etc.)  A lease can also be modified by mutual agreement.

Any agreement to extend should be written down either on the face of the old lease or in a letter or another written form.  Be sure to keep a copy for your records! 

A tenant may also "hold over" at will, unless otherwise agreed upon, at the same rental terms as the original lease, but the tenancy no longer has a definite term of life and it becomes subject to the notice requirements that apply to an oral lease or one with no definite terms.

For expert advice about real estate in the Florida Keys and Key West call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

The tenant must give the owner proper notice that they will be moving.  Once the tenant vacates the premises and at the end of the rental notice period the owner must refund the security deposit within 15 days. 

If the owner intends to keep the security deposit the owner must send a certified letter to the tenant stating that they are claiming the deposit.  The owner must state the amount and the reason why they are making claim to the security deposit.

If the owner does not send a certified letter then notice has not been made and the owner forfeits his right to impose a claim.

If the tenant does not give the owner appropriate notice prior to vacating, the owner is not required to send a certified letter to the tenant.  The owner is relieved from an obligation to notify their intent to keep the deposit.

If the tenant objects in writing to the owner with 15 days of receipt of the claim letter, the owner must return the deposit less the owners claim within 30 days of the date of the owner's notice of their claim.

If the tenant objects, and the tenant and owner are not able to reach an agreement, you must go to small claims court.

For help buying rental properties in the Florida Keys call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

Always talk to a lawyer!  For the moment, while you wait for your attorney to return your voice message or your e-mail, I'll share with you what I do.  So, I got the new listing and I told the seller that if they work on the curb appeal I can get them more money and sell it faster.  When they say, "Great, let's do it!"  This is what I need to know first... what kind of lease do they have?

To terminate an oral agreement, or a written agreement with no termination date, the tenant or the owner can give written notice stating that they intend end the rental agreement.

If the rent is paid weekly, you must give notice at least 7 days before the next rent payment is due. If you give the correct notice, the lease is terminated with the last rent payment.

If the rent is paid monthly, you must give notice at least 15 days before the next rent payment is due.

A written lease will usually specify a termination date.  On that date, the lease is over and the tenant must leave.  No notice from or to the landlord or tenant is required.

If your seller changes their mind and decides they need the rental income, a lease may be extended if both parties agree to the old terms.  If they modify the agreement there must be mutual agreement.  The agreement to extend should be written on the face of the lease, or in a letter.  Keep a copy!

For help selling your property that has a tenant call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

In Monroe County we have a comprehensive land use plan.  The "comp plan" regulates and promotes safe growth in the Florida Keys.  In the Keys only 88 new residential permits are distributed each year.  Very soon the "point" system will change, but for now and in the immediate past, to get a building permit an owner had to "earn" points.  One way to inch higher up on the point ladder is with a "nutrient reduction credit."

Nutrient credits are earned by replacing a cesspit or upgrading a cesspit (or substandard system) to a secondary treatment plant or an advanced treatment plant. 

You must earn a nutrient reduction credit within the same ROGO area as the parcel you want to build on.  Beginning on July 13, 2003, Monroe County allocated 41 nutriend credits for market rate units.  Market rate units are normal, regular new residentlal construction. 

The other kind of units are "affordable housing units" which now have a deed restriction, but did not during the last 10 years.  The purpose of affordable rate units is to keep work force housing in Monroe County.  Monroe County is allocated 193 nutrient credits for affordable housing units. 

For help choosing and buying your own piece of Florida Keys paradise that can only get more valuable, call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

Be careful when you buy vacant land in the Florida Keys.  The Monroe County Comprehensive Plan is known by residents as the "comp plan."  The plan stops excessive development in the Florida Keys.  The comp plan was amended on January 1, 2004.  The revision established an interim Permit Allocation System for new residential development in Monroe County.  The interim Permit Allocation System establishes a minimum of 88 new permits must be issued each year.

Residents will continue to follow the growth policy until the county determines all of our requirements to keep our community safe and allow reasonable growth.  The county has been working hard to establish a specific plan to keep our communities safe. 

The requirements for a safe community and the determination of future growth capacity must be balanced with the need for public safety and the need to protect our environment.  Residnets need to be able to evacuate for hurricanes in a safe and orderly manner.  We need safe water and we need to protect our natural habitat to preserve our natural resources and our quality of life.

It's important to realize that you may not be able to build for a number of years and may need to do some unusual things to be able to get a building permit in Monroe County.  If you purchase a mobile home you will automatically have a right to build in Monroe County. 

For more information about building, buying or selling residential real estate in the Florida Keys and Monroe County call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

Tattoo Shops in Key West?

So you wanna open a tattoo parlor in Key West?  Can you do it?

Yes!  There was a time not too long ago when the city said, "NO!" but times have changed.  It's amazing how fast change happens when you hire a good lawyer.  Soon the city amended section 122-418 "Conditional Uses" in the Old Town Duval Street area know affectionately by zoning officials as HRCC-1.

I'm not a lawyer.  I'm just a REALTOR® helping people who want to earn a living in this fine country with pen and ink.

Tattoo shops didn't last long in HRCC-1, but in that short time a few shops popped up out of the coral and concrete.  The window of opportunity lasted from August 7, 2007 through September 18, 2007.  In the blink of an eye, they were practically "outlawed."

According to the City of Key West Ordinance No. 07-14, which was revised on September 18, 2007, tattoo shops can now only be located in CG, or General Commercial zoning districts. 

You can find CG real estate on US Highway 1 just before you enter Key West which is where the original wild, wild West tattoo cowboys opened up shop.  If you take the fork in the road that leads you to the right you will merge into North Roosevelt Boulevard and continue through CG territory.  North Roosevelt Boulevard changes names and becomes Truman Avenue eventually.  The tattoo safe haven ends at that name-change point which is the intersection of Truman Avenue, Eisenhower and Jose Marti Drive.

A few more rules:  You can not put your tattoo business less than 500 feet from any other tattoo shop.  This is where it gets dicey:  "All tattooing shall be performed by a person licensed to practice medicine or dentistry under Chapters 458 and 459 or Chapter 466, Florida Statutes or by a person under his general supervision."

The term ‘general supervision', according to the Ordinance, "shall mean the supervision of the tattooist by a supervising physician, osteopathic physician, or dentist, which supervision shall not require the physical presence of the supervisor when procedures are performed, but shall require particular items" that must be followed if you don't want the city to shut you down.

To get a copy of the ordinance or for help buying commercial real estate in Key West call me at (305) 522-1398 or e-mail me at MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor

Buying a business that has employees presents some unique circumstances that you need to plan for.

Think carefully about your timing.  When you make an offer, choose a closing date and open your business can affect you and your cash flow.  Do you have plenty of money to float your business or do you need immediate cash flow to stay in business?  The first 3 years are critical and difficult. 

Duval Street may be the place that you need to be if you need high foot traffic and constant new faces to stay profitable.  It can be hard to make an offer if you plan to make your offer based upon a multiple of revenue.

Many shop owners will make the majority of their profit during "high season," and special events.  "Shoulder season" is also very good.  Shoulder season is the 2 months prior to and following high season.
 
Some businesses make their revenue for the entire month of October based on the week of Fantasy Fest.  The revenue for November may be made the week of Thanksgiving.  The revenue for December may be made during the week of Christmas and New Years. 
 
If winter is bad in the North, it snows hard and stays cold we have a better season in Key West.  The first 3 years are critical and difficult.  Most retail revenue is in direct relation to the cruise ship schedule, hotel occupancy and special events.  Obviously business is better during high season and on the week ends. 

Your revenue will likely be highest during special events and holidays and during the hours that a cruise ship is docked in Key West.  It's usually easy to anticipate when you will be busy.  You'll want more staff on duty when there is a cruise ship docked.  Consult the annual event schedule every year when you write your Business and Marketing Plan for the year. 

Staffing should be heaviest on week ends, holidays, special events, during high season and on cruise ship day.  If you own another or multiple business in Florida that you can shift to Key West for special events and high season you can dramatically increase your sales.  For this reason it is important to have some residential property that you can "house" your staff. 

A few business owners house employees "dormitory" style.  Some business owners house their employees 1 employee per bedroom.  Some provide an allowance for housing.  You can get away with dormitory housing for the busiest "short term" times like March and April, Fantasy Fest, Christmas and New Years.
 
 The last week of December is almost always slow and the first week of January is almost always slow.  We usually have a "cold snap" for 1 week during this time period.  When high season ends depends upon where Easter falls.  A late Easter extends the season.
 
Valentines Day weekend is dependent upon which day it falls on.  People will extend their holiday to 3 or 4 days depending upon the date.  Hotels will have "minimum stay" requirements in Old Town depending upon what day an event falls on. 
 
Employees that work year-round will need 1 room mate per bedroom and management will likely require their own apartment or home.  You do not want to rent hotel rooms because the rate doubles during special events even at the economy hotels.  The situation is now even more serious because of "compression" in the hotels in Key West because there have been condo conversions so there is a shortage of rooms and rates have increased dramatically. 

I recommend purchasing houses near Duval Street.  The reason I recommend the Duval Street area is because during the busiest times you can not park in Old Town and it can take twice or three times as long to get anywhere on the island.

1.  Your employees will be more likely to be on time.
2.  If they don't show up your manager can go knock on the door and only be gone for a few minutes from the shop.
3.  Your employees won't need a vehicle or to spend money on gas.
4.  Your employees can go home for lunch to save money and take a nap when you get really busy and they need to do a double shift.
5.  When real estate values increase the most valuable are is Old Town.
6.  Condo insurance rates are much higher than residential rates.
7.  For the same price of the cheapest property in Old Town you can't find property much cheaper in "New Town" and New Town or Mid-Town is not as valuable and will not be worth as much as Old Town properties later.

For more help buying and selling business opportunities call or e-mail me at (305) 522-1398 or MayaMarieThomas@Hotmail.com.

Maya M. Thomas
REALTOR®
(305) 522-1398
MayaMarieThomas@Hotmail.com
http://www.ShowcasePortfolioProperties.com
http://www.myspace.com/topkeysrealtor