Naples, Florida Real Estate Property Management Market Insights

Property Sales Reaching New Highs!

joe@gcmg.biz (Joe Oster) — Tue, 28 Jul 2020 03:54:58 GMT

Record Low Mortgage Rates

We could all use a little good news every now and then, especially in times like these. Lucky for you, we have some!

Travel restrictions haven’t slowed down buyers and vacationers from Southwest Florida nearly as much as experts initially anticipated. Collier County has seen a significant uptick in property sales this month. In fact, sales within the first two weeks of July surpassed the entire month of June and May.

The market is now the hottest it has been all year and, combined with a mix of falling home prices, low rates and an abundance of gorgeous summer weather, now is the time for you to invest in your future in Naples.

Mortgage rates are holding steady at a ridiculously low rate of 3%. This is good news for both investors and property owners who are looking to expand their share in the market.

The great news is, here at Gulf Coast Realty and Property Management, we know the market in Southwest Florida better than anyone else. Let us help you navigate through the waters, from purchasing a rental home to managing your properties.

So, what are you waiting for? Contact us today for a complimentary consultation at 239-325-4300.

Naples Ranks #1 Best Beach Town to Live In!

joe@gcmg.biz (Joe Oster) — Thu, 02 Jul 2020 18:44:11 GMT

Our Southwest Florida town outranked Hawaii’s shores!

In the midst of a pandemic, rental home owners (and their tenants!) are now faced with new questions every day. Questions they, nor renters, ever thought they would ponder in their lifetime. Questions such as:

If beaches close, does everyone lose beach access?
If vacation rentals are banned in the state of Florida, will I be able to financially outlast the closure?
Is the population low enough to allow for easy social distancing?
How well is the area setup to provide Coronavirus Support?
If I’m temporarily out of a job, will I be able to afford rent?
If I lose my job, are there new employment opportunities in the immediate area?
Are running trails and sidewalks safe enough to allow for outdoor, active social distancing?

If you’ve thought about these questions, then we have some good news for you. According to WalletHub, Naples is ranked #1 when compared against 191 beach towns across the United States. Our Southwest Florida town even outranked Hawaii’s shores!

These rankings were based on affordability, weather, safety, economy, education & health and quality of life during COVID-19. No other community beats Naples, which isn’t too surprising once you think about it. With features like affordable home purchasing, rental prices, good weather, walkability, lower unemployment rates, Coronavirus support and a wide variety of activities while social distancing — it almost seems like Naples was built for times like these.

Choose the best beach town in the U.S. to live and rent. Contact us today for a complimentary consultation at 239-325-4300

Resources: https://wallethub.com/edu/best-beach-towns-to-live-in/36567/

What To Do With A Vacation Rental in 2020

joe@gcmg.biz (Joe Oster) — Mon, 01 Jun 2020 16:56:59 GMT

From Vacation Rental to Annual Rental

2020 is shocking real estate predictions across the globe. A once highly regarded real estate investment opportunity, vacation rentals are now projected to experience a $7.1 million dollar revenue loss this year, with over 25% of the users dropping out of the market. Not to mention, those users are not projected to return to 2019 numbers until 2024. Naples is predominately a 55+ community, which is also the age demographic that is the most concerned about their risk levels and the least likely to travel at the moment. Your vacation rentals in Naples may be more impacted than your vacation rentals in Fort Myers Beach.

Times are tough for those who have multiple mortgages on personal and vacation rental properties. You are not alone in feeling the pinch with vacation rental bans and consumer uncertainty about travel. While travel isn't fully gone, it has stunted due to health and safety concerns and regulations. The drive market demand for local travel accommodations is anticipated to increase, however, the fact remains that you're not penetrating the same global audience as you did prior to COVID-19. Competition will increase in an already highly competitive market.

Here are two options if you’re in a bind:

1) Sell the Vacation Rental

The housing market is still a viable option. In Naples, the sale $ per square foot is up by .51% from last year. Sure, the mortgage process has changed and lenders are tightening their standards. However, with the right buyer, you may be able to step out of the vacation rental industry fairly smoothly.

2) Switch it to an Annual Rental

The perk of tightening lender requirements means that some property owners will not be eligible for a mortgage, requiring that they rent. Southwest Florida remains one of the fastest growing areas in the United States, which means an annual rental may be a more reliable source of income at this time. Also, it may lead to a higher demand as we continue to feel the economic impacts from COVID-19.

We're here for you every step of the way, from buying an investment property to selling and renting. Call us for a complimentary consultation, 239-325-4300.

Resources: Statistica

Investment Opportunities Develop Amid COVID-19

Wed, 22 Apr 2020 16:10:03 GMT

Increase Your Inventory of Rental Properties

There’s no denying that the COVID-19 pandemic is resurfacing the economy. It’s changed the way we do a lot of things and its made its way into the real estate market. The pandemic has led to tighter mortgage loan credit standards for new home buyers and property investors. For example, JP Morgan has issued a new policy setting the minimum requirements for a mortgage loan to a credit score above 700 and —at least— 20% down on your property. The National Association of Realtors have said the situation and lending standards could even grow more stringent if federal aid doesn’t arrive in time.

However, there is a positive side to this bleak outlook. Even with all the tougher regulations and stricter policies for obtaining a loan, this could create a potential time to buy and invest in property. There are currently many commercial and residential properties that are up for sale and need to be sold soon. There will be more properties entering the market as time continues. There’s no way to avoid that. But with fewer and fewer people being able to meet the minimum requirements to obtain a loan, this could drive down the prices on these properties and increase the demand for rental units. The potential for a cheaper investment opportunity is there and, if you have been approved for a loan already, this just might be the best time for you to buy. Southwest Florida is still considered the next big boom town, with both Lee and Collier counties increasing in population over the past two years by nearly 5%.

During these hard times, the potential for a cheap investment could be your diamond in the rough. Give Joe and the Gulf Coast Management Group a call today for a free consultation at 239-325-4300!

Joe Oster Earns CFRM Designation

Tue, 17 Mar 2020 13:04:22 GMT

Certified Florida Residential Manager in Naples, Florida

Joe Oster, President and CEO of Gulf Coast Management Group, has recently graduated with high honors from the Florida Property Manager Designation Course. Provided by Larson Educational Services, a real estate school in Fort Myers and Naples, this course was completed in two days, covering, with heavy detail, the practical and legal aspects of leasing and managing single-family and small residential investment properties.

What this means is – coupled with his accounting background and personal experience owning real estate, Joe has paper-proof of his expertise in real estate management and investing. And, with Southwest Florida being in one of the fastest growing regions in the United States, having both knowledge and experience in investment properties goes a long way.

With interest rates dropping, affordability increasing and Naples recently ranked the #1 “boomtown” in all Southern States by GoBankingRates.com — now is the time to invest into Naples and Southwest Florida. So, what are you waiting for? Contact Joe and the Gulf Coast Management Group for a free consultation today!

Joe Oster Featured in Top Agent Magazine

Fri, 28 Feb 2020 21:58:54 GMT

Joe Oster and his team oversee more than 150 properties within Lee County and Collier County

Joe Oster, President and CEO of Gulf Coast Management Group, was recently selected to be featured in Top Agent Magazine ! "I was an accountant by trade and I was very much involved in the developing of properties, new construction, and managing rental portfolios, so I've always had an interest in real estate." says Joe when thinking back on what led him to property management. Now, Joe's company, Gulf Coast Management Group, manages over 150 properties within Lee County and Collier County.

An uncomplicated fee structure, expansive online presence and clear communication have led Joe's team to bring added value and a friendly full-service approach to both owners and tenants. We encourage you to schedule a free consultation with Gulf Coast Management Group today to discover how you can earn residual income in one of the Happiest and Healthiest Cities in America.

New Year, New Real Estate Opportunities

Thu, 26 Dec 2019 22:06:04 GMT

2020 Countdown With the Top 3 Naples Real Estate Market Opportunities

1. Mortgage Rates are Predicted to Fall to Record Lows in 2020

In December 2019, 30-year fixed-rate mortgages reached an all-time low and certified financial planners like Matt Frankel, CFP anticipate mortgage rates to continue to fall to all-time lows in 2020.

2. Naples Market Remains Healthy for Property Management

The demand for more affordable housing is at an all-time high across the United States as the National Low Income Housing Coalition reports the need for more than 7 million affordable homes to meet the current housing demand. Meanwhile, rental rates continue to rise, while the Collier County unemployment rate and median closed price continues to drop — a great time in the market to consider owning a rental property.

Average rent in Naples, Florida as of November 2019 is $1,552 — a 7.02% increase from last year
Unemployment rate down by .4%
Median closed price is down 3% to $330,000
1 Bedroom apartments in Naples rent for an average of 10.27% more than last year

3. Take Advantage of Low Tax Opportunity Zones

Low Tax Opportunity Zones, established by the federal Tax Cut and Jobs Act of 2017, encourage long-term investment and job creation in targeted communities by reducing taxes for many job creators. They enhance the ability to attract businesses, developers and financial institutions to invest in these targeted areas — distressed communities — by allowing investors to defer capital gains taxes through investments in federally established Opportunity Funds. They allow private investors to support distressed communities through private equity investments in businesses and real estate ventures.

Naples Ranks #1 Place to Retire in U.S.

Sat, 02 Nov 2019 02:35:07 GMT

Naples was recently named the best place to retire early in the United States, and the best place to retire in Florida!

Based on social life, tax-friendliness and medical care, SmartAsset, a New York financial technology firm says that there simply isn’t much better than Naples, Florida. For 3 years in a row, our amazing city has taken home first place.

The population in Southwest Florida is has become one of the fastest growing in the United States over the last two years. As more people flock to Southwest Florida, the growth and new home construction to meet the demand is evident, and on the rise — so are the rental prices. A recent article by Wink News shared that many renters in Naples and Southwest Florida are seeking more affordable options as rental prices within new construction communities continues to skyrocket.

As of October 2019, a one-bedroom apartment in Naples rented for $1,271 on average, an almost 11% increase from last year. There’s opportunity in Naples for those who are interested in buying an investment property that perhaps has fewer luxuries and amenities but meets the increasing consumer demand for cost savings. After all, for many consumers — location is just as important, or more important, than luxury.

Naples Real Estate Investor Market Updates

Tue, 01 Oct 2019 07:00:00 GMT

Economic indicators in Florida are favorable as attitudes about the future economic condition continue to improve. The University of Florida’s Consumer Sentiment index rose 3.9 points to 93.3 in September. Florida’s economy continues to expand with over 230,000 new jobs since last year. Education and health services gained the most jobs — professional and business services, and leisure and hospitality jobs were runners-up.

Job Growth and Real Estate in Naples, Florida

In a 2019 study by AdvisorSmith analyzing U.S. Bureau of Labor Statistics and U.S. Census Bureau reports, Naples ranked #10 among midsize markets with a 10% job growth over the last three years. In Naples, there has been a growing demand specifically for cooks and health care practitioners. We’re seeing the impacts of this growth as the Golisano Children’s Hospital expects serious advancement at its Naples location through its secured agreement with the NCH Healthcare System. The pediatric specialists are preparing for an expansion that includes the addition of a 4,000 square foot $1-million cancer center, as well as a hiring response to the increased diagnosis of autism in the region. With the growing job market comes increased housing needs.

Recent Real Estate Report

Interest rates are improving as well; the benchmark 30-year fixed-rate mortgage fell in September to 3.91% — a year ago it was 4.92%. In Collier County, August 2019 saw a 7% increase in the number of closed sales, an inventory reduction of 18%, a 4% increase in days on market and a .2% decrease in median closed price compared to August 2018.

Investor Summary

More homes are selling than last year, and consumers are becoming more price sensitive — some speculate a nervous tension in response to the ongoing trade war with China and higher tariff threats. For investors, it’s a good time to buy to rent as home prices come off the recent high and price sensitivities give way to stronger buying power; more jobs are shifting to the area and the demand for housing continues to rise.

Resources: Florida Realtors, Naples Weekly, News-Press, Nabor, Florida Trend

3 Tips for Staging Your Rental Property

Tue, 20 Aug 2019 07:00:00 GMT

We’ve all heard of the importance of staging your home to sell. Buyers need to be able to envision themselves living in your space, right? Home staging has proven effective in increasing the probability of selling your home — the same applies for renting. You want your home to look its best for the future family or business professional who will be residing in your investment property. Marketing is everything. For a quick exercise, review the rentals on Airbnb and take note of the listings that intrigue you from first-glance. What do you notice about the decor and what’s on their counter tops? And while Airbnb targets short-term rentals, just think about how much more important a clean space is for renters considering an annual rental. There are a lot of home staging tips and resources online, and many summarize into approximately 3 rules to consider. It may seem like a hassle, however, taking the little extra effort prior to us photographing your investment property could make all the difference for your future renter.

1: DEPERSONALIZE & NEUTRALIZE

Remove all photos of you and your loved ones
Remove decor that may have your names or initials
Remove children’s artwork and achievements from the fridge/display boards
Match and coordinate what you can — matching storage boxes, furniture pieces, bedspreads
Paint with neutral colors — color-coordinate when you can

2: DECLUTTER

Box up unnecessary closet clutter to showcase how much space is available for your renter’s belongings
Empty kitchen cabinets of non-essentials
Remove rugs from the kitchen area
Remove items from your kitchen counters except for essentials — think “minimalist”

3: SANITIZE

Clean Everything — scrub grime from shower doors and shower walls
White bath and hand towels give bathrooms a more open-feel
Polish wood tabletops and counters
Windex all windows and mirrors
Clean and wipe your refrigerator
Remember your baseboards and fan blades!

Lastly, for the best photos of your investment property, turn on all of the lights in the home, open all of the window shades, vacuum and turn off the fans.

Residential Rental Property: Condo or Single-family Home

Thu, 20 Jun 2019 07:00:00 GMT

“I want to invest in a residential rental property. Should I rent a condo or a single-family home?”

For first-time real estate investors, it’s easy to get overwhelmed by the high-impact decisions that accompany real estate investments. And, like most responses to higher risk questions, the answer is often, “Well, it depends.”

When it comes to real estate, there are multiple market factors to consider prior to purchasing a rental property — location, market trends, health of the home, investment goals, investment risk. We encourage you to schedule a free consultation for more personalized guidance. In the meantime, here are a few general benefits of residential condo and single-family home rental properties for you to consider.

Residential Single-Family Home Rental (SFH)

No Association Fees: In general, condos come with monthly or annual membership fees and special assessments. Both are subject to increases, thus increasing your cost to rent.
No Restrictions on Use: Condo rules may restrict, or set guidelines, on how you use your property. This can make it difficult, or prohibitive, for you to rent your condo. Homes for sale, not within a community, do not have to abide by the strict rules of an HOA, thus making it easier to rent.
Appreciation Potential: In general, the recurring costs associated with a condo can negate much of the financial gain of appreciation. SFH’s have the potential to experience greater appreciation over time, given that the market factors mentioned above are in your favor.

Residential Condo Rental

Undervalued Units: Properties for sale lower than the assessment value can present an opportunity for a first-time real estate investor to obtain an affordable, lower maintenance asset that will appreciate more quickly.
Cheaper to Acquire: As a new investor, you may be searching for a more affordable purchase. In general, condos are cheaper than SFH’s. However, you will be responsible for the HOA fees and regulations. Tenant-screening is also important because you are responsible for ensuring that your tenants also abide by the rules.
Less Maintenance: Traditionally, the benefits of the HOA fees include not having to mow the grass or maintain the exterior of the building. With a SFH, the burden of home maintenance is generally shared between renter and homeowner.

Within the Naples Area in April 2019, we saw:

11% YOY drop in overall inventory
Condo sales were up 20% YOY
SFH sales were up 4% YOY
Median close price was $340,000, down 6%

Approximately 26% of those living in Collier County are renting — roughly 97,000 people.

How many of the 97,000 will be your future tenants?

Contact us today to learn more about getting started in the Collier County Real Estate investor community.

How to Market Your Rental Listing

Mon, 01 Apr 2019 07:00:00 GMT

With a busy season ahead as many families prefer to move during summer once schools out, April is the perfect month to share some of the FAQ we receive from new investors asking about the home rental marketing process.

How do you find home rental tenants?

Through modern and traditional marketing techniques. Automated property listings post vacancies to hundreds of sites including Zillow, Trulia and Rentals.com ensuring the maximum exposure for your listing. By 2022, it’s expected that 81% of the U.S. population will use a smartphone and the number of mobile-only internet users will increase by 12%—that’s why we invest in mobile-friendly online technologies for you and your residents.

How do you manage a rental property, exactly?

We manage the day-to-day operations of home rental—this includes:

Tenant Application and Approval Process
Rental Price Market Research
Collecting Rent
Late Rent Notices
Repair Oversight
Early Lease Terminations
Monthly Accounting
24-Hour Emergency Line
Insufficient Funds Payments
Routine Maintenance
Unauthorized Pets
All Charges Verified
Regular Inspections
Evictions
Neighbor/HOA Complaints

How do you protect my investment?

Through competitive rental pricing recommendations, home inspections and repairs. We research local market rental prices of similar properties and offer data-based listing price recommendations to maximize your profits while remaining competitive year after year. Home inspections take place before signing any contract, this includes: before you sign with us, before a tenant moves in, after a tenant leaves, as well as quarterly inspections, or as needed. We assess damage, preventable maintenance, plumbing, electrical, overall status and more. Expect detailed reports with photographs of each room in the property. For repairs, a highly-skilled in-house maintenance technician handles your quick repairs at discounted prices. Through strong vendor relationships, we’re able to offer highly competitive rates on maintenance issues that require outsourcing to a specialist. We offer real-time updates throughout the repair.

When do I get paid? How much commission do you keep?

We provide monthly financial reporting. Bookkeeping staff will provide you with month-end statements for your rental income and expenses. Year-end 1099’s and an annual statement will also be provided. Rent proceeds are processed by the 10th of the month. Proceeds are either directly deposited in your account or mailed to you each month. Our fees are fair and competitive, you receive 85-90% of the profits each month (subject to maintenance and repair fees). Please use the information provided on this website to contact us for more information.

Gulf Coast Management Group provides property management services to Naples, Marco Island, Estero, Bonita Springs and Fort Myers, Florida. If you’re expanding your business or would like to start investing in real estate, GCMG can guide you through our owner’s program, call us today at 239-325-4300

Are You Buying the Right Home for Renters?

Mon, 11 Feb 2019 08:00:00 GMT

Many home owners dream of turning their first home into an investment property for passive income. Others are buying a home with direct intent to rent. In both scenarios, consider reaching out to a property management company to help ensure you’re setting yourself up for success—prior to making a commitment on a home. Gulf Coast Management Group offers free consultation and home rental evaluation services. The value of talking to an experienced property manager could make all the difference.

Two items to consider when purchasing a home with intent to rent:

Simple Landscaping

Consider homes that don’t require a lot of landscaping maintenance for you, or your renters. In most Southwest Florida neighborhoods, it’s common to expect renters to mow their grass. However, you can’t expect all renters to want to keep up with planting seasonal flowers or keeping the weeds out of huge plant beds. Keep it simple.

Major Updates Completed

Most homes in the area priced $150,000 and below will traditionally need some work—you can expect outdated kitchens and bathrooms, old carpet and few modern upgrades. Generally speaking, a fresh coat of paint, new floors and needed repairs are the most popular investments that prepare a home for renters.

With that being said, there are a few updates that can reduce the likelihood of depleting your rental property emergency fund right away. Give greater priority to the homes that have newer roofs and HVAC systems. The idea is to avoid large repair and maintenance expenses right up front. If you are considering an older home with an old roof and HVAC system, the home itself should be a great deal with clear signs of a return on investment following upgrades.

Schedule Your Free Consultation and Home Rental Evaluation.