Quarter Wrap Up
from Realty Masters in Pensacola!
we are a month away from Thanksgiving?
Here in the Florida Panhandle, we had our first day with temps below 60 degrees and *hopefully* our final tropical weather scare of the
year, while some of
you have already had your first snow of the
This quarter's newsletter contains:
-Average Life Span of Appliances
-Roofs & Other Insurance Issues
-Donate to our Food Drive
Impact Laws & Felonies
Changes Advertising Structure
a Tenant Gift this Holiday Season or a Renewal Incentive
-The Price You Pay- Maintenance Expenses
Tax Items including
Invest in your Property, Capital Gains
Taxes, and Opportunity Zones
-Pensacola Real Estate Market Update
is doing their yearly sewer averaging beginning November 15th. If you are paying
a water bill that includes sewer,
it may be worth
the cost of a plumber to check all
units and do some routine
maintenance on the plumbing at your property or properties.
Not sure if you are paying
a sewer bill? Your annual sewer
ECUA are based off a 90 day average
that begins November
15, 2019. Let us know if you are interested in approving the cost of a plumber to be sent
to the property to check all
plumbing for the
upcoming sewer averaging period. No
reach out to our team for clarification.
Average Life Span of Appliances
a list of the
most common home appliances
their typical life span according
to the National Association of Home Builders.
-Refrigerator 13 Years
Heater 10 Years
-Dishwasher 10 Years
Heat & Air 15-20 Years
built in the
2000's will be approaching the need for
new appliances as time approaches. Consider adding an appliance package on your black
Friday shopping list or escrowing funds for
replacement in the coming
Manna Food Drive
Are you local? We're asking for our owners, tenants and vendors to help us collect
food for the local
food pantry. We are hosting
a food drive
for Manna Food Pantries during the month of October. Clean out your pantries and donate some food to Manna Food Pantry. Bring any items by
the month of October.
1 in 5 kids
in Escambia County don't have enough food to eat. Not sure what to buy or donate?
Roofs & Other Insurance Issues
roofs that were replaced after Hurricane Ivan are
now 15 years old, the Pensacola area is being inundated with insurance and financing issues surrounding
one of the major (and most expensive) components
of your home- your roof!
seen the following roof and insurance related issues:
-Current owners experiencing
difficulties renewing an insurance policy
owners receiving a letter from their
existing insurance carrier stating they need to trim trees or replace their roof in order to keep
-Current owners trying to change
-Sellers trying to
sell their properties having to a replace a roof that isn't leaking to close
to buy a property with an older roof unable to secure
In addition to roof
repairs and replacement requests from insurance companies, there's been an increase in insurance
companies requiring the following:
switch for your HVAC that shuts the unit off in
case of a water backup
-A pan required under the HVAC unit indoors
-A pan required under
the water heater
As these items were not previously
required to be up to code, they are now,
and you may consider having these items done at your rental property if they are not in place
We have discussed this topic in length
in previous newsletters and on our blogs!
Here's a few articles for more information in case you missed it.
Hurricane Michael on the Pensacola Area
it need a New Roof?
roof is approaching this 20 year mark, you need to consider setting aside money for roof replacement
in the near future. Also, consider these issues when
you are deciding whether to repair or replace
a roof that is leaking or having other issues. You may repair an area of your roof
only to find the roof needs additional repair soon after, and then,
ultimately replacement. These funds may be
better spent on a total replacement.
Laws and Felonies
A few years
ago, the Department of Housing and Urban Development
a guideline stating
that blanket screening policies that deny applicants with
felonies can be discriminatory. Since then, we have updated
our application and screening procedures to
effect the disparate
impact guideline. While we wait for HUD and Fair Housing to issue
further guidelines on this topic, we are finding
that lawsuits in relation to this topic are being filed
the state of Florida
(and likely the country). Watch this video from our friends at Florida
Realtors that discusses this topic in further
Housing Providers Sued for Allegedly Refusing 'Prior Felony' Tenants
does this mean? Whereas
we used to blanket deny anyone with felonies, we
are no longer
able to do this and need
to consider each tenant on a case by case basis and consider a lengthy
list of factors including the entire
application, type of conviction, history since conviction,
and any rehabilitation done
since the conviction.
We stay up to date with new laws
by being active participants in the
National Association of Residential Property Managers, National
Association of Realtors, and
from Chesser & Barr, our legal counsel.
Zillow Charging for Rental Listings in Florida
1, 2019, Zillow began charging for single family rental listings on their website! For years, we were able to list on Zillow manually and through a feed at
no charge. Florida
now $10 per week per listing in order to post on Zillow.
Zillow is apparently testing this in three states- Florida, Colorado, and Oregon,
but does plan
this out to other
states in the future and will likely expand to real estate listings for sale if it's successful in the rental testing. What does this mean for us? Nothing!
As of now, we have
need to change our
strategy. While our feed from our management software is no longer active, we list each and every property in the local MLS and this feed
is still active. Your
will still appear
on Zillow and the Zillow network but may take a day or two longer to appear as they will come through the MLS feed.
Consider a Tenant Gift this Holiday Season or Providing an Incentive at Renewal
loves a little holiday
your tenants with a small gift during the month of December goes a long way for goodwill throughout the rest of the year.
A small investment can make
a large impact on your tenants.
this is definitely not required, it's especially nice to consider your tenants if you've had a great tenant or one that has
been in place long term.
Here's a few ideas on gestures
you can make
to increase goodwill with your tenants this holiday season!
Gifts and other gift giving approaches:
a gift card to
Walmart, Target, or Amazon to buy something for the home or to help buy presents for the family.
a small deduction off the rental rate
for the month of
December to help offset the expenses of the holidays.
- Feel free to buy them a
small gift if you're a good
gift giver. Everyone appreciates a surprise
Consider Pensacola area companies that make gift baskets
Judy's Flowers Gift
Basket of Dreams Gift Baskets. Everyone
likes food so look at
some options like
Edible Arrangements or
the gift of deep cleaning or one time lawn clean up!
a carpet cleaning!
Have your tenants been in place more than
a year? This gift
benefits all parties. Carpets should be cleaned routinely to keep the pile healthy and to promote a better indoor
a one time yard clean
up from a professional lawn company. It's hard to keep up with these Florida lawns between the heat of
summer and the leaves
of winter. Often times, shrubs need to be trimmed
more than once a year
and tenants do not have the proper equipment to do them. However, we make most shrubs tenant responsibility.
Leaves fall in
winter just as fast as the grass grows in summer and
this is constant maintenance
for your tenants.
- Gift a deep cleaning from a
maid service to help
them prepare for family to come in town or to take a
Making repairs or upgrades to your home:
- Consider fixing or updating items
in the household. You
can invest in the house and your tenants will appreciate that as well. Let us ask them what one affordable
they may desire- like a ceiling fan in a bedroom, a new
outside motion light or new
weatherstripping on the back door! You'd be surprised what small items increase tenant satisfaction.
- Did you previously elect not to make
a repair the tenant's
had asked for? Now is the time to revisit that issue and get it repaired before the end of the tax
year and as
a gesture of goodwill to your tenant.
you are interested in any of these ideas, reply to this email or reach out to your property manager
can help to execute it for you!
The Price You Pay- Maintenance Expenses
it comes to maintenance
of rental properties and the many other expenses that come along with them,
of course we would all love to spend the least amount of money as possible.
It may make us feel like we are getting
a larger return. But beware, there may be a bigger price to pay when you choose
to pay the lower price!
If an appliance such as an AC or water
were to break, it’s important to
act quickly. While we want the tenant to be comfortable and back to normal in no
time, we also want to be sure the repair is executed properly. Especially
for those big ticket items, you would
like the peace of mind that what you are paying is fair and reasonable. We all know
that the only thing that should ever be ripped off is a band aid! Surprisingly,
the amount of time it takes can
also turn out to be just as expensive.
that can cause a long repair response time is a home warranty. For example,
an AC breaks in the middle
of summer. A certain part is needed, but
the home warranty cannot get that part for another ten
days and after it finally comes in, it may be another two days before the appointment
can be scheduled
for installation. That is an unreasonable
amount of time to make a tenant go without AC. Chances
are, your tenant is going to want to stay somewhere else in the meantime.
They may also seek reimbursement
for their expenses along with
a rent abatement. So, while you think you are only paying the
minimal service fee to the home warranty, you may also end up losing a few
hundred more dollars
depending on the amount of rent and expenses
you agree to credit. After that all adds up, it’s that
likely you could have saved a bunch of time, hassle, and money had you
chosen for a vendor
outside of the warranty company to make
the repair the same or next day, for $200 or less in most cases
that we’ve seen. You keep a tenant happy as well!
ordeal can leave
a bitter taste in the tenant’s
mouth. It may also be one of the main reasons they feel the need to vacate
upon lease expiration which will result in a vacancy and additional
Was waiting the extended amount of
time to try and save some money worth damaging your relationship with your
tenant? Valuable time may also be wasted if you require multiple estimates
for a repair.
Two estimates can usually give you
a good idea of what you can expect to fork out, but wanting to get three or
four estimates not only increases the repair time, but also increases
contribute to the relationships we have with tenants. The most common feedback
we get from tenants includes the condition of the properties they
live in, communication,
and maintenance request
response times. We work every day to improve in all of those categories and we act
as a liaison and at times, a mediator, between you and the tenant.
While we represent
you, we do make sure we are
providing an objective outlook on all situations so things may be handled as quickly,
efficiently, and as smoothly as possible. Just keep in mind that
may need to pay a little more
to have a little less trouble with your tenant/landlord relationship.
in your Property!
As we are now nearing
the end of 2019 tax year, consider your income and expenses year to
date. It makes more financial sense to spread repairs out over
than to wait until the property is vacant and there is a loss of rental
If you've had an easy
wise, you may want to consider some updates or preventative
maintenance to offset
income. Reach out to our team for recommendations on your property! There's always
can be doing to your rental investment.
We recommend being aware of the Capital Gains Tax
when considering your short and
long term plan for properties that you previously
occupied as your primary residence. Section 121 of tax code allows you to exclude up to $250,000
gains taxes (or $500,000
if married, filing jointly) if you meet both
the ownership and the use test. This can make a huge difference in your tax implications from the profit
your home. Become educated
on this topic on the
IRS website here
Opportunity Zones & Avoiding Capital Gains Taxes
to capital gains taxes,
there's been a lot of talk this year about Opportunity Zones and a new way to reinvest funds that would have normally been paid towards
gains taxes in real estate in
low income zones designated
The Tax Cuts and Jobs Act of 2017 in conjunction with the Internal Revenue Code Section 1400Z provides
new tax incentives in the way
of exchanging capital
gains if reinvested and held in accordance to the rules outlined. This rule applies until 2026. We're surely not CPA's and this topic digs
deep into tax code so always
consult your tax
professionals before moving forward with an investment plan that involves significant tax implications.
HUD has now created a website
with information to further
Zones. Visit it here as it applies for the entire U.S. and not just the Pensacola area.
a map to show certified opportunity zones. The Florida Department of Economic Opportunity also has a variety of information about
Zones on their website here.
In Pensacola, there are
limited zones identified
Zones and includes 5 small areas in Pensacola, a portion of Milton, Florida and most of the city of Century, Florida.
- East of Interstate 10 from
Baars Street North to
section between Fairfield Drive and Beverly Parkway west of Palafox St.
- A section both North and South of W Cervantes St.
area next to Corry
- An area West of Palafox Street to P St.
We're happy to run searches for properties located in the Pensacola opportunity
reach out to your accountant or CPA for more information on this topic and with your specific questions.
Real Estate Market Stats
How's the Pensacola real estate market doing? Here's some single family
statistics from the Pensacola
MLS for the 3rd quarter
Interested in multi-family sales?
- The median sales price for the Pensacola area was $215,000 with an approximate average
of $250,000. These
are records for
the Pensacola area!
- The average days on the market for properties sold in the 3rd quarter of 2019 was 57 days.
less a 4
of homes for sale on the Pensacola MLS. There were approximately 2,740 sales in the last quarter of 2019 with an active inventory
as of October
1, 2019 of 3,176 residential properties
- Of the 2,740 sales in the last quarter, nearly 10% of them were new construction!
- The lowest
lies in the under $100,000
The highest amount of sales are in the $200,000 - $250,000 range.
We've got some statistics for you year
- The average price for a fourplex sold in Escambia & Santa Rosa Counties year to date is $341,181. As one of those
was a historic
condo conversion quad, the average
excluding that unique property was $300,300 for a four unit building.
- The average price for a duplex sold in
Santa Rosa Counties year to date
- Inventory levels for multi-family remain low. The median number of days on the market for multi-family
to date is only 12 days on
about your property's value?
If you have questions
about your home or property
reach out to Pam for more information.
You can call her at
(850) 453-9220 or email
team is happy to provide a current market
analysis on your
property if you are curious, interested in selling, or have questions about refinancing to get a
lower interest rate. Check your
rates and see if it makes sense to refinance.
still seeing signs of strengthening in the Pensacola rental market in terms of lower inventory and higher rental rates.
Since 2015, we have seen
a decrease in the number of properties rented
increase in rental rates since 2011. We're on track for this trend to continue in 2019. Make sure to keep your property
updated so you can take advantage
of increasing rents. Owners that made
to their properties saw a significant increase than those who did not.