Do Rental Restrictions Benefit Your Community?
Our team has been prolific Stuart, Florida based Realtors since 2003, marketing and selling properties along the Treasure Coast and Palm Beach real estate corridors. We specialize in high-end Martin County club communities, waterfront communities, and second-home communities.
HOA Rules and Regulations
Today’s buyers and sellers are expressing more interest in community rental restrictions than ever before. The popularity and exposure of Air BNB, VRBO, and similar vacation rental sites have made community rental policies a controversial topic.
Our experience confirms that rental limits have proven to be in these communities' best interest. These are the homeowner association policies that typically restrict rentals to only once or twice a year, with a three-month minimum rental period, and 650 or higher tenant credit scores.
While limiting rentals benefits the community, short-term and Air BNB rentals often reflected in the prohibitive language of those policies causes problems and concern among owners who need to sell in a challenging market. That said, addressing transient rentals separately from traditional annual or seasonal leasing offers owners more options when it comes to selling their home.
- The demographic of renters and their guests attracted to Martin County upscale waterfront or club communities will pay $21,000 or more for a three-month seasonal rental. They often end up purchasing in that community. These renters and buyers help to keep homes off the for-sale market, which limits inventory and maintains property values.
- In soft markets, sellers have options other than having to sell at a distressed price. Rental options allow the owner to keep their home and wait for a better market.
- The residents of most high-end communities tend to be older. Sudden unexpected reasons why homes need to sell are more common. Owners that plan to leave their homes to relatives are often disappointed because without the option of renting family members are often forced to sell at a distressed price.
- Purchasing vs. renting a second home is expensive even for buyers financially sound, considering tax’s, HOA fees, insurance, and general maintenance.
Although we have never lost a sale in a community that had a limited rental policy, we've lost quite a few sales when a community either had aggressive Air BNB or no rentals at all policies.
For buyers looking to purchase a Florida waterfront home where properties remain undervalued, we STRONGLY believe Martin County’s Hutchinson Island represents an exceptional opportunity. Unlike Dade, Broward, or Palm Beach Counties, Martin County still has gated waterfront homes with wide-water views, backyard docks, and private beach access for under $500 per square foot. The golden rule in real estate has not changed. Buyers determine value based on location, location, location, and the scarcity of inventory. A wide-water view, beach access, sunrises, sunsets, and an island lifestyle is becoming irreplaceable.
Contact Us to schedule a free consultation. Whether buying or selling a home, we are always happy to meet with you to discuss your wants and needs, no obligation.
Eric Slifkin, a Broker Associate, is the founder of the Slifkin Team at Keller Williams Realty. Eric and his team of experienced agents serve South Florida and the Treasure Coast, including Stuart, Port Saint Lucie, and the Palm Beaches.