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Property Management Minute Blog

Why Invest in Miami – Professional Advice for Property Investors

Web Admin - Friday, March 03, 2017

Eddie was a featured expert in “Why Invest in Miami….Zurich.

Miami’s Growth

Last year, Miami was the eighth largest growing city in the country, and every day we are seeing thousands of people move into the state of Florida. It’s a great time to invest because of the marketing. Everyone in the world knows that Miami is the best place to be.

In our 50-year history of data for the Miami market, the last four years have broken new records in our industry for the number of real estate sales.

Miami Investment Strategies

There’s a different investor coming to Miami. The investment strategy is not the same as it was in 2006, 2007 and 2008. The down payment requirement is now 50 percent. It used to be 10 percent or five percent or no money down at all. Now, investors need to have 50 percent. That creates more financial stability in the purchase of the property as well as within the banking system and our community. The great news is that Miami prices are still equal to where they were 11 years ago, in 2004. The median home sale price is $282,000 for single family homes and $207,200 for condominiums. You can see why Miami has so many affordable options as compared to other world class cities.

Miami is one of the best places to invest today. It’s still growing and it will be very expensive in the future. Incomes are increasing locally, so as investors we can raise rental prices. There are also low vacancy rates; the vacancy ratio in Miami is under five percent.

Luxury Sales

Luxury sales are homes that are sold for $1 million or more. We have actually had a 2.3 percent increase in this market, so while our sales have been amazing and breaking new records locally, we are also still increasing in the luxury market. Our median sale price for luxury properties is $1.7 million.

Miami as a Destination

Miami is one of the best places to be because it has become the capital of South America. It’s the most international city in the United States and we have more foreign born residents in Miami than any other major city in the U.S. It’s welcoming and wonderful and as a resident you’ll be comfortable here because you’ll meet people from your home region, wherever that may be.

Miami’s Future

When you’re making an investment in Miami, you have the peace of mind that your investment will grow. There are three reasons that people buy property here: for vacation homes, for primary residences and as investments. In the top 10 worldwide cities important to high worth individuals, it’s New York, London, Honk Kong, Shanghai, Beijing and then Miami. The projection 10 years out is that Miami and New York will still be the only two U.S. cities on the radar for high worth investors.

Come to Miami. If you have any questions about the market or how to invest, contact us at Pristine Property Management LLC.


Translation

Por que Invertir in Miami

Es un placer anunciarles a ustedes basado en un reporte que salió en el 2015 que existen solamente 2 ciudades en los Estadios Unidos que están entre las 10 primeras ciudades más importantes.

Esas ciudades son New York y Miami, Nosotros estamos en una ciudad con una clasificación más alta que Dubái, Paris o Zúrich.

El crecimiento de Miami

El año pasado Miami era una de la ciudades más grandes en crecimiento por cuidad y por condado y todos los días podíamos ver miles de persona radicarse al estado de la Florida. Este es el mejor momento para invertir en Miami ya que todo el mundo sabe que Miami es el mejor lugar para residir. En los últimos 50 años de datos de historia en el mercado de Miami, en los últimos 4 años ha roto los registros de ventas de Bienes y Raíces.

Estrategias de Inversión en Miami

Existen diferentes tipos de inversionistas que vienen a Miami. Las estrategias de inversionistas no son las mismas de los años 2006, 2007 y 2008. Por ejemplo, hoy día el inversionista necesita un 50% para depósito inicial. Sin embargo en este tiempo al inversionista necesitar un 50 % crea más estabilidad financiera en la compra de una propiedad, también en el sistema bancario y en la comunidad. Estas buenas noticias de los precios de Miami son iguales a los precios de hacen 11 años atrás, en el 2004. El costo promedio de una propiedad unifamiliar es de alrededor de $282,000. Y por un condominio alrededor de $207,200. Usted puede ver por qué Miami tiene tantas opciones asequibles en comparación con otras ciudades del mundo. Miami es uno de los mejores lugares para invertir hoy día y todavía continuara su crecimiento y será muy costoso en el futuro. Los ingresos locales están incrementando por el cual los inversionistas pueden aumentar los costos o precios de renta. Además, los niveles de propiedades vacantes son muy bajos, alrededor de un 5%.

Ventas de Lujos

En el caso de venta de propiedades lujosas han sido vendidos 1 millón o más. En este momento existe un incremento de un 2.3 % en este mercado y mientras las ventas sigan increíblemente rompiendo los registros locales el mercado de lujo también sigue en aumento. Nuestro promedio en precio del mercado de propiedades lujosas es de 1.7 millones de dólares.

Miami como Destino

Miami es uno de los mejores lugares para estar y es porque se convirtió en la capital de Sur América. Es la cuidad con más residentes extranjeros en los Estados Unidos y por esta razón es considerada la cuidad más internacional de los Estados Unidos. Como residente es muy acogedor y maravilloso vivir en esta, ya que puedes conocer o interactuar con gente de su propia región.

El Futuro de Miami

Cuando haces una inversión en Miami tienes la tranquilidad de que estés haciendo una buena inversión y que va crecer. Existen 3 razones por las cual la gente compra aquí: Casas de Vacaciones, Primera Residencia y por Inversión. Para personas de alto patrocinio las primeras 10 ciudades más importantes del mundo son New York, London, Hong Kong, Shanghái, Beijín y luego Miami. La proyección dentro de los próximos 10 años es que Miami y New York serán las 2 únicas ciudades de los Estados Unidos con el nivel más alto de inversionistas.

A Property’s Renovation Progress in Ft. Lauderdale, FL | Pristine Property Management

Four andhalf.com - Tuesday, September 13, 2016


Follow Eddie and Pristine Property Management in Fort Lauderdale, Florida through the renovation journey of this building. Watch as Pristine Property Management transforms this property into a new, profitable investment for its owners.

Property Renovation & Repairs

To date, we have repainted, upgraded the roof, resurfaced the pool, laid new pavers, and re-tiled all of the common areas; three units have been renovated as well. Stay tuned for an update on this Fort Lauderdale’s Property Management renovation journey.

If you have any questions about property management in Fort Lauderdale, FL, contact us here at Pristine Property Management.

Property Investors, Is Your Property Manager a NARPM Member?

Web Admin - Tuesday, December 08, 2015

Today we are talking to you from Atlanta, where we are attending the National Association of Residential Property Managers (NARPM) national conference. Brian Birdy has joined us, who is one of the board members of NARPM and an amazing guy and a great educator. Brian is sharing with our property owners why it’s beneficial for investor clients to select a NARPM member as their property manager. 

Individuals who join NARPM have made it clear that they will be a specialist in management and an expert in the field of property management. There are lots of individuals and real estate agents who do property management, but it changes when you actually join NARPM and commit to being educated, ethical and sharing with other professionals. 

Property managers who do not belong to NARPM have not figured out the potential of that experience and this association yet. We learn from each other about how to better serve our clients, including investors or reluctant landlords or whoever the property owners might be. Property managers get trained in how to better run their businesses. That means we are more successful while helping our owners and investors to be more successful. 

At NARPM events such as this, we learn about the laws, how to best protect properties and keep owners properly insured. All of the education we receive helps us run our businesses well and give the best service possible to our clients. We learn these things not only by being a NARPM member but also by attending events like this one. The fact that all the property managers here took the time and the energy to come to the annual conference shows that they are interested in getting better educated. 

Since we have become NARPM members, our business at Pristine Property Management has really been revolutionized. Our methodology has changed and we’re really using everything we learn to provide better business and high quality service to our clients. 

When you’re interviewing a property manager to take care of your rental home or investment property, make sure you ask if they are a member of NARPM. If they say yes, you’ll know you’re getting better quality, better service and a higher level of integrity. 

If you have any questions about NARPM and what we’ve learned at this year’s conference, please contact us at Pristine Property Management.

15 Questions Homeowners Must Ask a Property Management Company in Miami – Part 3

Web Admin - Wednesday, December 02, 2015
This is the third in our three part series covering the 15 most important questions to ask when hiring a property manager

11. What training and license do you have? 

A property manager and the management company must be licensed and registered with the city and the state. In addition, inquire about other professional property management affiliations that the company has as well as any trainings they attend. 

12. What happens if a tenant doesn’t pay rent? 

The delinquency and eviction process should be explained to you. The company must have a clear and aggressive collection process for tenants who are not paying on time. Progressive companies will track their internal tenant delinquency rate monthly, and should be able to show that to you. Inquire about the eviction process and costs. A strong screening process can assist in preventing the need for eviction. 

13. What insurance do you carry and what insurance should I carry as an owner? 

Inadequate insurance can leave an owner high and dry if a catastrophe happens. Most management companies are required to carry errors & omissions insurance, workers compensation as well as general liability. Owners need a minimum of one million dollars in coverage per hazard, as well as liability insurance and flood insurance if necessary. 

14. How often will you inspect my property? 

Some type of walk through or inspection should be performed annually. Ideally, there is a move in inspection, a six month inspection and then an inspection at 11 months, prior to the tenant move out or renewal. If your tenant is moving out, an additional inspection should be conducted after the tenant leaves and before the security deposit is returned. 

15. How often does the company send out financial statements and reports? 

This is a critical factor in your relationship with a property management company. It’s important to receive and review monthly financial statements and maintenance repair updates. 

If you missed the previous two posts (part 1 and part 2), go back and read them so you know the 15 most important questions to ask a property manager. If you need any additional information, please contact us at Pristine Property Management.

15 Questions Homeowners Must Ask a Property Management Company in Miami – Part 2

Web Admin - Tuesday, November 24, 2015

This is the second in a three part series covering the 15 most important questions to ask when you’re hiring a property manager. In the first part of this series, we gave you five initial questions to ask. These are the next topics you should discuss.

6. Where is your office located, and what geographic areas do you operate in?

Office location is important considering how often your property manager should be showing your property. It will also make a difference if there are travel charges for maintenance calls.

7. How will you market my property?

A full service marketing program will use professional signage, online advertising, MLS and other resources. Ask how many websites they utilize; the more the better.

8. What is your tenant screening process?

This is a critical question to ask. The process should be comprehensive. Ask about the application process as well. All tenants over 18 years of age should be screened for verification of income, employment, credit, criminal history, eviction, terrorism list and non-sex offender list. References should always be called.

9. Can I review your lease agreement and rules and regulations? Have these documents been reviewed by an attorney?

A bulletproof lease is your best defense against a tenant who is trying to take advantage of a situation, and not all leases are created equal.

10. How do you handle maintenance requests?

Someone should be available to handle maintenance emergencies 24 hours a day and seven days a week. After an issue has been reported, a qualified technician should be dispatched to determine whether the issue is a matter of wear and tear or tenant neglect. If the problem is due to neglect, the tenant should be responsible for paying after the work is complete. If the problem is due to something that’s not the fault of the tenant, the owner is responsible.

Watch for the final blog in this series, as we share five more critical questions to ask when you’re hiring a property manager. If you have any questions about this blog, please contact us at Pristine Property Management.

15 Questions Homeowners Must Ask a Property Management Company in Miami – Part 1

Web Admin - Wednesday, November 18, 2015
In this three part blog series, we’ll cover the 15 critical questions to ask when choosing a property management company. The core business of a property manager is managing properties. This sounds logical, but it’s easily overlooked. By selecting an effective, efficient and reputable management company, you’ll remove your stress and increase your profits. Today, we are starting with the first five questions that you want to ask during the interview. 

1. How long have you been managing properties? 
2. How many properties do you manage? 

Some companies have on-site managers who manage lots of doors, but few properties. These companies don’t typically have the experience to make the decisions that positively impact your property. You want a firm that manages enough properties to know what they’re doing but not so many that you become just a number.

3. Do you have a company website and can I see it? 

A management company should utilize technology well, and a website is the minimum requirement. When you look at the site, it should be informative, professional and showcase the properties. 

4. How many people are on your team? 

You don’t want to work with a one person shop. That can require a trade-off between accounting functions and showing functions. In addition, small offices can sometimes lack the resources that are needed to immediately address a problem, and as a result the small problem can become a big one. 

5. Can I get three references from owners you work with? 

Any reputable company should have success stories, and a good property management company will be willing to share them. 

In the next two blogs, we’ll share an additional 10 questions to ask when hiring a property manager. If you have any questions about this, please contact us at Pristine Property Management.

2016 Rental Market Update for Investors in Miami and Fort Lauderdale

Web Admin - Friday, November 06, 2015
Today we’re talking to Peter Zalewski from CraneSpotters.com about the rental market. Many investors want to know what we see for the future and how that affects the Miami and Fort Lauderdale markets. 

Market Location 


CraneSpotters.com focuses on properties east of I-95 only. West of I-95 is mostly families and people more affected by schools and other things when they’re shopping for rental property. East of I-95, we have a more urban environment. We find younger renters who don’t have kids. 

Rental Price 


Overall, this rental market is good. Since 2009, we have seen an increase in 60 to 70 percent for rental price per square foot, monthly. This price increase has lit a fire under the developers who have land where they were planning to build condos. Those condos might not have been successful when it came to presales, so they are now turning towards creating rentals. This is driven by the rising rents and the tenant pool, which has increased due to people who perhaps cannot qualify for financing. Rents are still going through the roof, and they have been climbing since 2009. This has led to an increase in rental product. Banks are happy to finance rentals, but they don’t like condos. The market, therefore, is turning to rentals. 

Market Direction


When these rental towers come online, we expect rents to either hold or begin to retreat and fall down, which would give today’s landlord advantage to the tenant. Remember that it’s difficult to get data on rentals. Sales are recorded and become public records. Rentals are not required to be reported, so we use the MLS to complete our analysis. You can maybe use Craigslist or Hotpads.com, but there is a lot of bad information out there. Using the MLS, what you will find is that there is a less than six month inventory in every market. Six months of available inventory is the balance. Most markets right now have two to three months of inventory available, so the market isn’t currently balanced. With inventory this low, the landlord or the seller has the advantage. But when the inventory climbs to six months or higher, the buyer or the tenant is able to enjoy the market advantage. Right now the market favors landlords, and the expectation is that within 18 to 24 month, landlords could actually find themselves at a disadvantage. That’s the cycle of real estate. 

If you’d like to follow the Miami market, check out CraneSpotters.com or contact us at Pristine Property Management, and we’d be happy to help you.

Pristine Property Management - Presenting Sponsor of the Miami New Construction Show

Web Admin - Friday, October 30, 2015

This past weekend we attended, exhibited and participated in the 2nd annual Miami New Construction Show. The 4 day expo featured over 100 new development projects from some of South Florida's biggest names including Brickell City Centre, Paramount Miami WorldCenter, Porsche Design Tower, Prive Island, Marina Palms, and many many others. In addition to developers, there was a plethora of other exhibitors such as construction companies, brokers, attorneys, tax advisers, lenders, media outlets, title companies and other associated professions. Even the Miami Marlins had a booth! 

Pristine Property Management was one of the event's presenting sponsors and our sister agency, Miami Property Brokers, also had a booth at the event. 

In addition to the exhibits, there were several educational panels for buyers, investors and agents covering a broad array of topics related to South Florida real estate. Mayor Tomas Regalado spoke about Miami's ascent after the downturn and how the local government is cooperating with developers in pushing forward projects that will transform the city. Developers such as Dan Kodsi of Paramount Miami WorldCenter, Gil Dezer of the Porsche Design Tower, Edgardo Defortuna of Jade Signature, David Martin of Grove at Grand Bay, and several others discussed their projects and their vision for Miami and South Florida. 

One of the panels featured local prominent brokers discussing the market and where it's heading. The general consensus was that this go-around isn't expected to bust like the last condo boom did. Developers are taking a much more conservative approach this time, demanding much larger deposits upfront and only moving forward with projects once a good portion of sales have been realized. Developers also weighed in on the topic, Dan Kodsi of Royal Palm Companies called it a "much more sober market" and David Martin of Terra Group stated that the fact that some projects have recently been canceled shows that ill advised developments will not move forward, which is a positive thing for the market in the end. 

Our own Eddie Miller participated in one of the panels, titled "How to Buy a Pre-Construction Condo Unit in South Florida" aimed at educating buyers looking to purchase pre-construction condos as investment properties or second homes. Alekxey Sabido and Ivan D. Ramirez from Miami Property Brokers also conducted an educational session for foreign buyers. 

The event showcased exciting projects, insight from the experts, and provided a great platform to network and interact with some of the brightest people in the industry.

No Roof Left Behind

Web Admin - Friday, October 23, 2015

Today, we are in Miami Gardens celebrating the No Roof Left Behind project with City Roofing and Construction and Mario and Candy Famada. Pristine Property Management is excited to be a sponsor of this program. It’s a national effort that’s getting amazing results. 

No Roof Left Behind is a nonprofit organization and they rally the community together to vote for a person in need to get a new roof. So today, Tiosha King is the winner who will receive a new roof by City Roofing and Construction, and we are celebrating her entry and the fact that we can come together to provide something that is needed. 

We are excited to be a part of this celebration and we’re also excited about the No Roof Left Behind program. For any questions about what this program does for the community and how we are involved, please contact us at Pristine Property Management.

Investing in Miami Properties? 7 Key Points Investors Need to Know to Create Profitability

Web Admin - Monday, October 19, 2015

When my partner and I started to invest in real estate, we purchased rehab and sold properties. Then we also began holding and managing some of our own properties as rentals. As our business grew, we became advisory board members for our local real estate investment association. As a result, we met other investors who were challenged with managing their own properties. We found that managing rentals can be a hassle. Yet, because it was the core aspect of our business, we figured out how to overcome those challenges and create profitable investments. In the process, we actually uncovered seven key points that help with profitability.

  • Purchase a property that will provide the desired annual rate of return, with a consideration for the cost of the purchase, repairs, taxes, insurance, vacancy and management.
  • Have a sound lease agreement with clear rules and regulations.
  • Market for qualified tenants.
  • Once you find qualified tenants, conduct a thorough background screening. This screening should be based on previous rental history, possible evictions, credit, criminal record, non-sex offender verification, national terrorism list, reference checks and income verification.
  • Have effective ongoing communication with your tenants.
  • Have a strict rental payment policy. We have a less than 2 percent eviction ratio in our company. If someone is challenged, we work with them to get them back on track. We post a Three Day Notice, call the tenant to make payment arrangements and proceed with eviction only when necessary.
  • Conduct regular inspections. We do a move in inspection, six month inspection and an eleven month inspection prior to lease renewal. All of our inspection reports are documented with a tenant signature.

Attempting to manage your own property can be a daunting task, and missing any one of these points can be costly, dramatically lowering your desired rate of return. Many investors hire a property management company. If this is the case for you, interview and hire a company that is effective, efficient and reputable.

If you have any questions, or you’d like to hear about our services, please contact us at Pristine Property Management.


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