Last week we talked about the future restoration and look of Cortez after the storms and after the county’s purchase of the Seafood Shack property. This week we’ll cover an emerging trend in the country where communities that have been struck by a disaster are frequently rebuilding richer and more exclusive – sound familiar?
Natural disasters can be galvanizing for a community where people come together to help neighbors and share information about contractors, painters, debris removal and just about anything else. It also presents an opportunity for developers and investors to swoop in and leave their mark on the area.
Homeowners who have received government aid and insurance payouts are rebuilding sturdier homes and meeting updated building codes. In addition to adding another layer of storm protection in the rebuilt homes, homeowners also have the opportunity to remodel damaged areas. This will ultimately translate into a more valuable and marketable property.
Unfortunately, there are low-income homeowners who have more problems navigating the bureaucratic procedures to file for disaster aid and may not have personal funds to close the gap until the funds are available. Also, on Anna Maria Island, longtime residents with beachfront property handed down through families frequently did not carry homeowner’s insurance since the premiums were higher than the value of the building. Many of these cottages and older one-level homes have been sold to developers for the land value. Renters of course can get evicted or choose to move from damaged properties and are facing higher costs and a short supply of rentals.
What this means for Anna Maria Island and Cortez is a change in the profile of the communities. The slow pace of living in these communities is changing, replacing an Old Florida vibe with a jazzier vibe and new, larger homes capable of entertaining family get-togethers and weddings.
Many of these properties are owned by investors or investor groups and are designed for renting and although Anna Maria always had many properties that were available for rent, it still maintained the quality of Island life. Many islanders now fear the Island will never be the same.
A good example of how a Category 5 storm changed a community in Florida is Hurricane Michael, which hit the Panhandle in 2018. Panama City had an older, slightly tattered downtown area which has been restored with trendy restaurants and boutiques and an increasing population. Brokers specializing in waterfront properties say wealthy buyers are arriving in growing numbers, raising the economy and value of properties considerably.
While we were talking hurricanes, which I swore I wouldn’t do, I found some interesting statistics from the FSU Florida Climate Center. Starting with the Great Miami Hurricane in 1926 through Milton in 2024, there have only been three Category 5 hurricanes, nine Category 4 hurricanes and 10 Category 3 hurricanes. Don’t get too comfortable with these numbers since the one-two punch of Helene, a Category 4, and Milton, a Category 3, did an incredible amount of damage prior to making landfall compounded with a 4-foot storm surge.
Nevertheless, populations have increased in three of the most severely hit Florida communities. Andrew in Miami was a Category 5, Charley in Charlotte County was a Category 4 and Ian in Lee County was a Category 4 – all increased their populations substantially within a three-year period after the storm.
I’m standing by my prediction from last week about the value of properties in Cortez. I also believe that Anna Maria Island will enjoy an increase in property values as well. You may not like the new vibe, but you may really enjoy the increasing trends in value.
My favorite real estate expression is “all real estate is local,” which I have used in this space many times. But what exactly does that mean?
Essentially it means that real estate markets are significantly influenced by local factors and conditions, rather than national or global trends. Also, it means that property values, demand and investment potential can vary greatly even within the same city or across the street.
This is important to the value of property because growth, population trends, school districts, amenities and local regulations all impact property values and demand. Relying solely on national or global trends can lead to poor decisions because they don’t capture the nuances of local markets. Therefore, when you read the following national statistics recently appearing in the Wall Street Journal according to Intercontinental Exchange, a financial technology and data company, keep this in mind: The metro areas that had the biggest increase in home prices in April compared to a year ago are: Bridgeport, Conn., Scranton, Pa., Hartford, Conn., Syracuse, N.Y. and New York, N.Y. These increased ranged from a high of 7.3% to 6.4%.
The biggest decreases were in Lakeland, Fla., Tampa, Fla., Austin, Texas, North Port, Fla. and Cape Coral, Fla. These declines ranged from a high of 7.5% to 2.2%.
The report also compares home prices vs. change in housing inventories. For example, New York’s prices increased 6.4% in April while inventory was down 46% from pre-pandemic levels. This trend continued through the Midwest down through Texas and Florida ending in Cape Coral, Fla with a decline in prices of 7.5% in a year.
Also influencing these numbers is the amount of southern migrating occurring from 2020 to 2024. During that time, the south’s population grew 5.1% with Florida and Texas benefiting the most. Florida’s population increased 8.5% and Texas’ population increased 7.4% during this period, per the Census Bureau.
In response to the increase in population, builders started building in areas of Florida in particular that were farming communities. There are now new home communities going up in west Bradenton and north of the Manatee River in Parrish, inflating the number of properties on the market in Manatee County.
Nationally, the supply of homes for sale is still around 16% below pre-pandemic levels, according to Realtor.com. which is not what Florida is experiencing. Homeowners who locked in low mortgage rates a few years ago are reluctant to sell their homes and take on new mortgages with a higher borrowing cost, and buyers are still waiting for lower interest rates.
The wrap-up on these numbers is that the Northeast and Midwest home prices continue to rise in all major markets. In the South, particularly in Texas and Florida, prices are flat or falling. And in the West, prices are rising in some markets and falling in others.
In addition, the overall U.S housing market is far less active than it was a few years ago when mortgage rates were low and remote work allowed people to move farther from their offices. Again, I would not bet money on any of this. I’m not saying it’s not true only that it can change in a heartbeat. As soon as the snowbirds from all over the country and Canada figure out that Florida’s prices are dropping, and new construction is readily available, they will come back in force looking for a bargain.
Everything in life is dictated by what’s happening in your state, county, and street. All real estate is local; you better believe it.
If you like the condo lifestyle and you live in Florida, you’ve landed in the right place. But even what seems to be the right place can have challenges, especially in the environment we’re currently living in.
Let’s start with the rights of condo owners. Florida condo law, as outlined in the Florida Condominium Act (Chapter 718 of the Florida Statutes) will explain, in fine print, owner rights as an owner, but for the purpose of this column we’ll hit on some of the key aspects.
As a condo owner, you have exclusive ownership of your unit; remember, when you purchase a condo, you receive a deed just like if you purchase a single-family home. This includes the right to occupy, decorate, renovate, lease or sell your unit. Every condominium association has certain restrictions on these above rights which will be disclosed to a prospective buyer in both the association’s condo documents as well as their rules and regulations. For instance, there could be limitations on types of modifications that can be made and may require board approval for renovations and/or modifications.
Owners have access to common elements such as pools, gyms, docks and clubhouses. Again, all of this is within association guidelines based on hours, noise restrictions and ongoing repair work.
Living in a condo association, you are automatically a member with a voice in the governance of the community. You will be asked to vote on material alterations, elections for the Board of Directors and other significant community decisions. I can’t emphasize enough that becoming active in the community, volunteering on committees and running for a board position is one of the most important things you can do if you want your voice heard.
Florida law ensures that condo owners have the right to inspect the association’s official records. Not all of the financial records can be disclosed in a board meeting, therefore, if you want more detailed information, you can ask the board for specific records you want to review.
Since no one is perfect, there may be times when you as an owner feel that rules are not being enforced equally or that there are excessive rules. This is also protected under Florida’s condo law and should be brought to the attention of the Board of Directors.
Certainly, the most important aspect of your rights as an owner is the stability of the association’s finances. This includes increases in fees, the addition of special assessments and a clear justification for fee increases, all of which can be contested by an owner.
One of the reasons to know what your rights are as a condo owner is coming to a head in several states but particularly in Florida. As a result of the Surfside disaster, Florida enacted specific inspection laws relative to the stability of condo buildings that are three stories or higher. Condos need to be inspected by a Florida qualified inspector and if there are any structural repairs required, the association is mandated to make the repairs. In addition, in Florida, condo associations have to prove through their financial records and reserves that they have adequate funds to make any repairs needed.
Condo associations that haven’t prepared for this are facing large assessments and are also putting the ability of buyers to be approved for financing in jeopardy. Freddie Mac is quietly blacklisting areas of the country or individual associations where mortgages will not be approved. This extends itself to the insurance industry, which could be another obstacle in the way of selling your condo.
A condo is still the most carefree lifestyle and perfectly suited to Florida living. You just need to stay on top of how the association is spending your money, stay involved and understand your rights.
It’s been six months since Hurricane Milton invaded us and every day we still feel the effects of the storm. Most of us are either continually rebuilding, cleaning up or juggling finances to get our lives back to where they were before the storms.
Last week we talked about buyer and seller remorse, but the deeper emotional issues are losing your home and your possessions. Most people have an emotional attachment to their homes and their community. Seeing disruption or actual loss has a lasting effect. A home is part of a community of friends, family, neighbors and memories.
Adding to the emotional loss is the sudden financial hardship of losing one’s home or experiencing major and costly repairs. Most people invest a huge portion of their net worth into their home and have accrued a great deal of equity, so watching it go literally down the drain leaves many homeowners worrying about their future financial security.
For Island people who have made the decision to move, selling after a major disaster can be challenging at best. These are the sales numbers the Realtor Association of Sarasota and Manatee provided for the two zip codes on Anna Maria as of February:
Zip code 34217, Bradenton Beach and Holmes Beach single-family homes: The median sale price in February was $1,105,000, down 39% from last February. The average sale price was $1,414,583, down 52.4% from last year, and new listings are up 33.3%.
This is the report from The Realtor Association for condos in Bradenton Beach and Holmes Beach. The median sale price was $535,000 this February, down 13.7% from last year and the average sale price was $553,333, down 26.1%. New listings are up 6.7%.
Obviously, the single-family numbers look far worse than the condos, likely because there are so many single-family homes that were not elevated and had severe damage selling for reduced numbers compared to last year. The majority of condos are elevated and experienced less damage, at least from flooding.
Anna Maria, zip code 34216, had a median sale price of $1,750,000, down 12.5% this February compared to last year. The average sale price was $1,808,333, down 27.6% from last February. Finally, new listings in Anna Maria are up 31.6%.
Selling your home in the aftermath of a disaster requires patience and a fair amount of creativity. These properties need to be marketed as the future value, not the present value. There is great investment opportunity on the Island and based on the number of visitors in the past month, people still want to vacation here.
Buyers, especially younger buyers, are very much influenced by climate change and the effects that it will have on a barrier island. So, a balance has to be struck when listing the benefits and financial investment available on Anna Maria Island. You can’t hide that we experienced a serious series of storms, and you have to be honest about damage sustained, but here again, we’re looking at future growth.
The effects of the storm, both physically and monetarily, are deeply unsettling. The physical landscape of the community changes and people move away, leaving a constant feeling of loss. It’s important to stay focused on how Anna Maria Island was before the storm and know it will come back right along with property values.
It’s tax time again and tax time is never fun, but this year could be particularly not fun. In view of the 2024 storms, this tax filing season could be quite a bit different in addition to the normal tax benefits afforded homeowners.
I’m not a licensed CPA or even a tax preparer, so you always need to seek advice from a professional when it comes to finance of any type. I did, however, find a couple of points related specifically to Hurricane Milton. On Oct. 11, 2024, the IRS announced disaster tax relief for 51 counties in Florida.
Affected Florida taxpayers will now have until May 1, 2025, to file various federal tax returns and make certain tax payments. In addition, Hurricane Milton was considered a federal disaster, therefore, personal casualty losses can be deducted to the extent the losses are attributable to a federally declared disaster.
In normal times for the average taxpayer, your home is still the best shelter from taxes. Mortgage interest for a first or second mortgage or home equity loan is a deduction for taxpayers who itemize deductions. This deduction is for your primary home and to a lesser degree for a second home.
Local property taxes can be deducted subject to the SALT (state and local taxes) cap, which is $10,000. However, the cap is very controversial and there is an ongoing battle in Congress to get it reversed. SALT is part of the temporary 2017 tax law that is due to expire at the end of 2025 which could affect taxpayers in all states with high property taxes.
Home office deduction is frequently a gray area for people who do a lot of work from home. The law is if you receive a W-2 from an employer you cannot take the deduction for working from home no matter how much work you do for your employer from your home. The deduction is for individuals who use part of their home exclusively and regularly for business purposes.
There is a long list of expenses you have in running your home that you cannot deduct: Insurance, including title insurance; wages you pay for domestic help; depreciation; utilities and home repairs; internet or Wi-Fi access; and homeowners or condominium association fees.
The government does provide certain credits affiliated with energy-efficient home improvements up to $3,200 a year. The credit is for 30% of the cost of the improvement. Insulation, windows and doors qualify as well as heat pumps, water heaters and biomass stoves. In addition, homeowners who add solar, wind or geothermal power generation, solar water heaters or battery storage to their homes can claim a residential clean-energy credit.
The biggest tax savings, however, is when you sell your home, particularly if you have accrued a large amount of appreciation in your property. The gain in value in your property is the difference between the selling price and the adjusted base, which includes what you paid for the house, plus renovations or other capital improvements, which could be a long list.
In addition, the government gives homeowners a home-sale exclusion which further limits your capital gains. The exclusion for single tax filers is $250,000; for married couples filing jointly, it is $500,000. To qualify you must have used the house as a primary residence for at least two of the previous five years.
Good luck with your taxes. Remember to always consult a tax professional, especially this year if you have had home damage. Be happy it only comes once a year.
About a month ago, we talked about being in uncharted territory as it relates to the real estate market. Not much has changed for the better in the last month and the statistics for January will confirm that. However, properties are still being listed, and buyers are still out there, and as usual, sellers want top dollar and buyers want bargain basement prices.
One of the tenets of the real estate industry is the ability to negotiate price. According to a survey conducted by Lending Tree in May 2023, 63% of buyers have successfully negotiated a home’s price, 38% negotiate closing costs and 36% negotiate repairs.
The terms of an offer are every bit as important as the price. This includes closing date, mortgage contingencies and furniture. And don’t take the furniture issue lightly, especially for condos in Florida. It’s pretty common to purchase condos, even luxury condos, with the furnishings, including furniture, wall coverings and even other decorative objects.
If you are negotiating a sale including what would be considered personal items, make sure there is a detailed list of what is being conveyed with the property as part of the contract of sale. In your mind, your grandmother’s original Tiffany lamp will, of course, not leave the family, but the buyer assumed otherwise when you negotiated the personal items. And don’t think buyers, especially in the uncharted territory we’re in right now, won’t walk because of this dispute.
Information is powerful, particularly during the negotiating process. The more you know about the buyer and seller the more power you have, for example, buyers who have already sold their home or are in contract to do so, or sellers who have other buyers in the background or have had no showings in months.
By far the most important thing you can do when negotiating is to be respectful of the other parties’ position and don’t make demands. If you’re successfully diplomatic, you can turn down an offer and still leave the door open in a reasonable way by asking for a reframing of the offer.
Time to see what the Manatee County sales statistics look like for the month of January, reported by the Realtor Association of Sarasota and Manatee:
Single-family homes closed 22.1% more properties. The median sale price was $480,000, down 8.6% from January of last year, and the average sale price was $662,504, down 10.0%. Median time to contract was 49 days compared to 35 days last year, and there are 8.5% more listings this month compared to last year. The month’s supply of available properties was 4.6 compared to 3.9 months last year.
Condos closed 7% fewer properties compared to last year. The median selling price was $335,990, down 6.1%, and the average sale price was $408,238, down 7.5%. Median time to contract was 60 days compared to 47 days last year, and new listings are up 2.2%. The month’s supply of available properties was 8 months compared to 5.6 months last year.
The Realtor Association points out three trends: A decrease in median sale prices across all property types, increased time to sell and contract – meaning it is taking longer to sell across all segments – and finally, there is some growth in closed sales, likely leftover transactions from the end of last year.
So much of buying and selling residential properties is emotional, so keeping your emotions in check will serve you better. You could, of course, read “The Art Of the Deal” written by Donald Trump for pointers in negotiating. Just be careful, negotiating is certainly an “art,” so hard and fast rules don’t apply.
The day you close on your home, whether it’s your first or fifth, is always a happy day – almost as happy as the day your mortgage commitment is approved – but that’s just the beginning of homeownership.
As any homeowner can tell you, the expenses of owning a home in recent years have risen to the point where the mortgage payment, in spite of elevated interest rates, is frequently less than the combination of other monthly expenses.
Last week, we talked about insurance, and that, of course, is probably the biggest expense after the mortgage payment. Buyers should shop around for insurance quotes prior to committing to a property to purchase, especially in areas of the country like ours that are prone to natural disasters. According to the International Exchange, the cost of $1,000 of coverage in areas prone to hurricanes and wildfires is more than three times the national average.
Property taxes are also a large portion of your monthly carrying charges and can increase as the value of your property appreciates. In Florida we have homestead exemptions for full-time Florida residents, which lock in the value of your property, but this is not true in other regions of the country. This is one of the reasons why Florida still imports new residents from other parts of the country with much higher property rates. It’s also why so many Florida homeowners, many of whom have second homes here, convert to full-time residents.
For potential condo owners, association fees in the form of monthly fees and special assessments is a big-ticket item. The monthly fees are disclosed in the real estate listing, however, special assessments for storm damage or large repairs that haven’t been anticipated will likely be funded by special assessments that generally do not appear on the real estate listing.
Special assessments that have been approved by the board but not yet assessed to the owners will appear in the minutes of the board meeting from the date of the vote. However, there could be other discussions about potential assessments that are still in the decision-making stage that are also in the board of directors meeting minutes that will be important to a potential buyer.
Utility bills are frequently underestimated when budgeting; electricity, gas, oil and water bills are increasing yearly. Water bills are a special concern in Florida, especially during our dry season, and nationally, the average water bills are nearly $1,000 a year.
It goes without saying that routine maintenance is an ongoing expense when you purchase a property. You never really know when you might need to replace an appliance or take care of landscaping problems and heaven forbid the air conditioning/heating system decides to blow up during August. Zillow estimates that an average of about $500 a month should be anticipated for home maintenance, a number that smart buyers will allocate in a cash account.
You hear a lot of homeowners say, “We could never afford this house today,” and this is not their imagination. According to Redfin in January 2012 the household income required to afford the typical home in the United States was $39,223. As of November 2024, home buyers need to earn $126,764 annually to purchase the average home, a 223% increase.
Florida’s success as a retirement and relocation destination is threatened by the by-product of increased expenses. It’s not your parents’ Florida anymore; the bar has been raised for the good or bad.
MANATEE COUNTY – Property owners in West Manatee Fire Rescue’s district will notice a change on their tax bills this fall if commissioners vote to pass a proposed rate increase.
At an April 16 budget workshop, district staff recommended a 7.4% increase for the coming fiscal year beginning on Oct. 1. If approved, the rate increase would bring in an estimated $740,236 in revenue for the district.
WMFR uses a non-ad valorem rate system based on the size of a building on a property or a flat rate if the land is vacant. Currently, the base rate for a residential property is $219.94 with an additional charge of $0.1297 per square foot above 1,000 square feet. For a 2,000-square-foot home, the total rate for the 2023-24 tax year was $349.64. With the proposed rate increase, the residential base rate would be $236.22 with a per-square-foot rate of $0.1393 for buildings over 1,000 square feet. The total proposed rate for a 2,000-square-foot home would be $375.51 with the rate increase, a difference of $25.87.
The commercial base rate for 2023-24 was $546.61 with a per-square-foot rate of $0.2367 over 1,000 square feet, bringing the total for a 2,000-square-foot building to $783.31. With a 7.4% increase, the base rate would increase to $587.06 with a $0.2542 per-square-foot increase, bringing the total to $841.27 for a 2,000-square-foot building, a difference of $57.96.
A new change coming this fiscal year is that transient public lodging establishments in the district, known as short-term vacation rentals, will be charged as commercial properties instead of residential ones to help cover the cost of the fire safety inspection program instituted this year. District staff estimates that the increase in revenue from this change will bring in $613,686.
WMFR staff predicts that total assessment revenue for the 2024-25 fiscal year will come in around $11,357,114, a difference of $1,353,922 over the 2023-24 year’s $10,003,191.
If approved by commissioners, the increase in assessment rates would be used to cover increases in firefighter compensation, necessary replacements of vehicles and equipment and the fire safety inspection program.
TALLAHASSEE – Gov. Ron DeSantis will decide the fate of proposed vacation rental legislation that seeks to preempt vacation rental regulation to the state.
Supported by the Florida Senate and House of Representatives, the legislation proposed in the matching House and Senate bills and now known collectively as CS/SB 280 would preempt vacation rental regulation, including vacation rental advertising, to the Florida Department of Business and Professional Regulation (DBPR). DeSantis can sign the legislation into state law, allow it to become state law unsigned or veto it.
If DeSantis supports the state preemption, local and county governments, including those on Anna Maria Island, will lose some local vacation rental regulation authority and enforcement powers. If adopted as state law, local governments could still conduct annual health and safety regulation inspections, require an annual vacation rental registry and continue levying “reasonable” registration and inspection fees. The enrolled bill does not define “reasonable.”
Sen. Nick DiCeglie sponsored SB 280. – FlSenate.gov | Submitted
Sponsored by Sen. Nick DiCeglie (R-Indian Rocks Beach), the Senate, on Feb. 1, voted 27-13 in favor of adopting SB 280 as it was written at that time.
State Rep. Philip Griffitts Jr. sponsored HB 1537. – MyFloridaHouse.gov | Submitted
On Wednesday, March 6, the House members voted 60-51 in favor of the amended committee substitute version of SB 280 after adopting a lengthy amendment presented by Rep. Philp Griffitts Jr. (R-Panama City Beach), the sponsor of the original House bill, HB 1537. Rep. Will Robinson Jr. (R-Bradenton) voted in favor of the bill which was then sent to the Senate seeking Senate concurrence with the House-amended committee substitute version of CS/SB 280.
State Rep. Will Robinson Jr. supports the state preemption of vacation rental regulation. – MyFloridaHouse.gov | Submitted
While debating the House-amended bill on March 7, Sen. Bobby Powell (D-West Palm Beach) proposed a Senate amendment to the House amendment that would have grandfathered in any local vacation rental regulations adopted before July 1, 2024. After a spirited debate between supporting and opposing senators, 16 members supported Powell’s amendment and 24 rejected it.
Sen. Jim Boyd voted in favor of the vacation rental legislation. – FlSenate.gov | Submitted
After further debate, the Senate members voted 23-16 in favor of adopting the House-amended version of CS/SB 280, thus creating identical matching bills to send to DeSantis. Sen. Jim Boyd (R-Bradenton) and Sen. Joe Gruters (R-Sarasota) opposed Powell’s amendment and supported the final adoption of the bill. The 2024 legislative session ended on March 8.
Bill language
On Feb. 23, Griffitts told The Sun his primary goals were to create a statewide vacation rental registry database and to better ensure short-term vacation rentals are properly registered and all applicable taxes and fees are paid. Griffitts said it was unlikely that House members would adopt the Senate bill that then differed significantly from the House bill. However, on March 6, Griffitts presented the House members with a lengthy proposed amendment to the Senate bill, which the House adopted by a slim nine-vote margin.
The proposed state law would establish vacation rental occupancy limits set forth by the state. – Joe Hendricks | Sun
If enacted as state law, CS/SB 280 would require vacation rental owners, managers and operators to comply with a maximum overnight occupancy that doesn’t exceed two persons per bedroom, plus an additional two persons in one common area; or more than two persons per bedroom if there is at least 50 square feet per person, plus an additional two persons in one common area, whichever’s greater.
Adopted in 2015, Anna Maria’s vacation rental ordinance limits total occupancy to eight persons for any vacation rental home or unit built after that city ordinance took effect. In response to more than 100 Bert Harris claims filed within one year of the city vacation rental ordinance adoption, the city commission granted legitimate Bert Harris claimants additional two-plus-two occupancy exemptions that exceed eight occupants.
Florida cities could still enact local vacation rental registration programs if the new law is enacted. – Joe Hendricks | Sun
Similar to local vacation rental ordinances, CS/SB 280 would require the vacation rental owner/operator/manager to designate a representative who can respond to complaints or emergencies by phone, or in person, 24 hours a day, seven days a week. That designated individual would also receive any violation notices issued by a local municipality or DBPR.
During the March 7 Senate debate, DiCeglie acknowledged only nine DBPR staff members would be assigned to oversee the state’s vacation rental regulation, but local governments would still be expected to assist with those efforts.
The proposed law would require local governments to issue written notices of violations of local laws, ordinances or regulations that don’t apply solely to vacation rentals but occur at a vacation rental property, including noise violations.
The proposed law would allow local governments to suspend a local rental registration for up to 30 days for one or more violations on five separate days during a 60-day period, up to 60 days for one or more violations on five separate days during a 30-day period and up to 90 days for one or more violations after two prior suspensions.
The proposed law would allow local governments to revoke or refuse renewal of a vacation rental registration if a vacation rental registration has been suspended three times.
The legislation states that as of Jan. 1, 2026, local governments must use the state’s vacation rental information system to notify DBPR of any local suspensions. DiCeglie acknowledged the state’s registration database would not be fully operational until 2026.
Mayor’s concerns
On March 8, Anna Maria Mayor Dan Murphy said he hopes to travel to Tallahassee to meet with DeSantis in person.
“I want to tell him what the implications of that bill would be for the city of Anna Maria,” Murphy said, noting he doesn’t know if DeSantis supports the legislation.
In 2020, DeSantis told a group of reporters he was not sure the state should be micromanaging vacation rentals, as reported by FloridaPolitics.com and others.
In past years, Murphy’s made several trips to Tallahassee to lobby state legislators and he’s disappointed that due to unforeseen circumstances he wasn’t able to get to Tallahassee while the legislature was still in session.
“I don’t think we did an adequate job of getting to the senators and explaining to them the implications. This bill shouldn’t have happened. Of all the vacation rental bills that have come across in recent years, this is probably the worst. The biggest impact is we’re going to have party houses and go back to the days of 25 people in a house. I’m exceptionally disappointed with the state legislature. I find it hard to believe that they couldn’t be more sensitive to the needs of their constituents,” Murphy said.
Murphy said the proposed square footage-related occupancy provision would be virtually impossible to enforce and enforcement of vacation rental advertising, including occupancy limits, would be preempted by the state.
When asked what the city could still do in terms of enforcement, Murphy said, “I’m still sorting that out.”
While awaiting DeSantis’ decision, the city will utilize its HomeRuleFlorida.com website to engage in an email-based opposition campaign directed at DeSantis.
BRADENTON – West Manatee Fire Rescue’s board and staff are moving forward with beginning an annual inspection program for vacation rentals in the district that will reclassify the properties as commercial for fire district purposes.
Commissioners voted unanimously during an Aug. 15 meeting to move forward with the plans, despite some concerns stated by the public.
Under the new program, the district will assess vacation rental properties, also called transient public lodging establishments, as commercial properties, regardless of their zoning. District staff also will annually inspect these properties for life safety, looking for items such as fire alarms, carbon monoxide alarms, fire extinguishers and proper egress from each bedroom in case of an emergency.
Fire Marshal Rodney Kwiatkowski said that after sending a letter in July to over 12,000 people in the district describing the new program, he said he’d received 12 written responses and 87 phone calls from the public, each one of which he said had been amicably resolved. A few more people stepped up during the public hearing to voice their concerns and questions about the new initiative.
One man said he only wanted to rent his property for one year. Kwiatkowski said that for the one year he rents the property, it will be assessed as a commercial property, however, when he stops renting the property, it will revert to a residential property in the eyes of the district and be assessed as such.
Kwiatkowski said the new assessment rate and inspections are allowed under the Florida Fire Code. Under the questioning of district attorney Maggie Mooney, he added that the district’s classification of properties does not affect those by any governing municipality and does not change property from residential to commercial for county or city property tax purposes.
Attorney Aaron Thomas stepped up to the mic, stating that he was representing the ownership of more than 500 rental properties in the district. Thomas said that he feels there is sufficient case law to argue against the district assessing vacation rental properties as commercial and suggested that his clients may seek legal action if the district pursues the change.
The district charges property owners a non-ad valorem assessment rate which appears on TRIM notices each fall. The rate consists of a base rate that is adjusted based on the size of the building on a property, not the value. On average, a commercial property owner, as defined by the district, will pay about $200-300 a year more than a residential owner, depending on the size of the structure.
MANATEE COUNTY – Property owners located in West Manatee Fire Rescue’s district recently received some mail they likely weren’t expecting from the fire department.
District leaders sent out a letter to all property owners in the district, spanning Anna Maria Island, Cortez and unincorporated Manatee County in west Bradenton, notifying them of an upcoming public hearing to discuss increases in assessment rates. The good news for property owners is that unless you own a vacation rental property in the district, your rates won’t increase much.
While most residential property owners will be looking at an average $13 increase in non-ad valorem assessment rates in the coming 2023-24 fiscal year from the fire department, owners of vacation rentals will be looking at a more significant increase to the tune of a few hundred dollars depending on the size of the unit.
The change for vacation rentals comes by way of the Florida Fire Code, which allows for districts like West Manatee to classify vacation rentals as commercial properties operating in residential districts, even if the property is zoned residential. The reason for the change in WMFR’s district is to allow fire inspectors to inspect vacation rental properties – seen as businesses despite their location – for safety and compliance with fire prevention measures such as placement of fire extinguishers, plans for egress and placement of fire alarms. The inspections are slated to begin with the new fiscal year on Oct. 1.
Fire Marshal Rodney Kwiatkowski said that vacation rental owners should not be concerned about needing high-ticket items such as sprinkler systems. He also said that the district will be working with other organizations already conducting safety inspections, such as the Holmes Beach Code Compliance division, to make sure that efforts are not duplicated.
Changing the classification for the district of vacation rental properties also changes how those properties are taxed for services by the district. While the zoning for the properties is not changing, under the fire code they’re now viewed as commercial rather than residential properties, triggering an increase in rates. The increase in funding allows WMFR to complete the staffing needed for the new inspection program, including the hiring of a new fire inspector and assistant for the Fire Prevention Bureau.
The public hearing is scheduled for Tuesday, Aug. 15 at 6 p.m. at the district’s administration building, 701 63rd St. N.W. in Bradenton. The public is invited to attend and speak in person or over Zoom.
BRADENTON BEACH –The West Manatee Fire Rescue (WMFR) district has informed city officials about its plan to conduct annual safety inspections of short-term vacation rentals.
WMFR Fire Marshal Rodney Kwiatkowski presented the district’s inspection plans to the Bradenton Beach City Commission on April 20. WMFR Fire Chief Ben Rigney also attended the meeting.
When addressing the commission, Kwiatkowski noted the vacation rental industry is booming nationwide.
“It’s estimated that every 44 seconds there’s an accident at a vacation rental property,” he said.
He then referenced recent news stories pertaining to fires that occurred at vacation rentals, including the March 8 fire at the Bird’s Nest apartment building in Bradenton Beach, where three of the units serve as short-term rentals.
Kwiatkowski said one of the Bird’s Nest guests was showering when the fire occurred and
was able to safely escape because he heard the fire alarm.
“This is what we’re trying to accomplish,” Kwiatkowski said.
Kwiatkowski said eight of the 11 structure fires that occurred on Anna Maria Island during the past three years occurred at short-term vacation rentals.
He noted the state defines a short-term vacation rental as a dwelling or dwelling unit rented to guests more than three times in a calendar year for periods of less than 30 days, or advertised as such. Kwiatkowski said the district’s pending inspection program would only pertain to short-term vacation rentals and not to longer term, seasonal or annual rentals.
Kwiatkowski said the state of Florida’s Uniform Fire Safety Standards mandate that local fire jurisdictions protect health, safety and welfare in certain types of structures, including transient public lodging establishments (short-term vacation rentals).
“All such local authorities shall enforce, within their fire safety jurisdiction, the uniform fire safety standards for those buildings,” according to the state statute.
Kwiatkowski said transient public lodging establishment inspections are allowed according to Florida’s Uniform Fire Safety Standards and the Florida Fire Prevention Code. He also noted state law allows the state fire marshal to deny, refuse to renew, suspend or revoke the certificate of a fire safety inspector who fails to properly enforce the state’s applicable fire codes.
Kwiatkowski said there’s a long list of items inspectors will be looking at. The list includes properly functioning smoke alarms and fire extinguishers placed in proper locations, safe electrical components, primary and secondary means of getting in and out of the vacation rental unit, emergency lighting and more. He said WMFR will work with impacted property owners to help them get to where they need to be in terms of fire and life safety measures.
Commissioner Ralph Cole asked if vacation rental inspections are a new state mandate.
Kwiatkowski said the state statute has been in place for several years and was in place when he became the fire marshal in 2019. He said the COVID-19 pandemic and other events delayed the district’s implementation of a vacation rental inspection program. Kwiatkowski said other fire districts statewide are implementing similar programs.
Mayor John Chappie offered the use of the city commission chambers for a stakeholders’ meeting with potentially impacted vacation rental owners and others.
Additional info
Later in the week, Kwiatkowski was asked how many short-term vacation rentals operate on Anna Maria Island.
“We have identified approximately 2,700 legally operating vacation rentals throughout our district. Roughly 2,400 of those are on Anna Maria Island. I suspect there are a great number more operating that aren’t registered through the Department of Business and Professional Regulations as they are required to be. We are committed to identifying every vacation rental in our district and ensuring they are compliant. Safety is not an optional amenity. It is the foundation to a healthy business and community and profitable business and safety are not mutually exclusive,” Kwiatkowski said, noting the inspection program will begin Oct. 1.
“Regarding additional staffing, WMFR will hire two additional fire and life safety inspectors and an administrative assistant to help with the additional workload. After the two additional hires, our Fire and Life Safety Bureau will consist of four fire and life safety inspectors, an administrative assistant and myself,” he added.
Kwiatkowski is scheduled to make a similar presentation to the Anna Maria City Commission on Thursday, April 27. In late January, Kwiatkowski discussed the district’s vacation rental inspection plans during a Code Compliance town hall meeting held in Holmes Beach.
ANNA MARIA ISLAND – Vacation rentals are a popular use of residential properties both on the Island and in unincorporated Manatee County where West Manatee Fire Rescue’s district is located. Now district leaders are looking at reclassifying those properties within their district as commercial properties for enforcement and tax purposes.
During a January board meeting, Fire Marshal Rodney Kwiatkowski presented the idea to the district’s staff and board of commissioners as a life safety concern. With so many people in and out of vacation rentals across the district and limited oversight from government agencies, as a preventative measure, he said he’d like the district’s fire prevention bureau to be able to inspect the properties for safety.
Inspections would include looking for items such as properly placed smoke alarms, fire extinguishers, floor plans of the home indicating exit points, emergency lighting and other precautionary measures commonly found in commercial properties. To fund the initiative, he suggested the fire department’s staff look into the possibility of assessing the owners of vacation rental properties in the district as commercial rather than residential properties. If that happens, it will mean a jump of approximately $200 per year, depending on the size of the property, for vacation rental owners and an increase of more than $1 million in funding to the fire district.
To run the program, Kwiatkowski said the district would need two more inspectors and an assistant at an estimated cost of $350,309 per year with an additional $140,000 needed to pay for department vehicles for the new hires.
Currently, the district charges a fire assessment on residential trim notices at a lower rate than they do for commercial properties. And while multiple-unit residential properties are already assessed and inspected as commercial properties, traditionally residential properties, such as single-family homes and duplexes, are still treated as if a full-time resident lives there. Because they are rented, Kwiatkowski said that under the state’s fire code, the properties are identified as transient public lodging establishments, allowing for them to be inspected by the fire district’s staff. This is the same designation given to a hotel.
In the past three years, Kwiatkowski said that of the 11 residential structure fires on the Island, eight of them were at vacation rental properties. In 2022, he said there were three pediatric drownings or near-drownings on the Island, all of which occurred at rental properties.
He presented the proposed project at a Holmes Beach Code Compliance town hall meeting with vacation rental owners and representatives on Jan. 31, reassuring the rental community that the fire department would be working with local municipalities to make sure that enforcement and inspections would not overlap with those currently taking place on the Island as a result of city efforts to make rentals safer for visitors. He added that the inspections would likely begin taking place in the fall.
ANNA MARIA – City officials in Anna Maria are already following proposed state legislation that pertains to vacation rentals.
Vacation rentals are among the many matters that will be debated by the Florida Legislature during the 2019 legislative session that convenes on Tuesday, March 5.
“The vacation rental snake is alive and well. There are three bills pending in the Senate at this point. Two of them are from Rep. David Simmons from the Orlando area,” Mayor Dan Murphy said during the Feb. 14 city commission meeting.
Simmons’ Senate Bill 815 proposes the Florida Department of Business and Professional Regulations (DBPR) Division of Hotels and Restaurants impose a fee schedule on hosting platforms that advertise or list short-term vacation rentals.
Simmons’ Senate Bill 812 proposes persons engaged in certain public lodging-related transactions be required to display a valid certificate of registration number in their rental listings or advertisements. It also calls for DBPR’s vacation rental inspection responsibilities to be revised and the vacation rental classification to be revised.
Murphy said Simmons’ legislation seeks a compromise between local governments and vacation rental advertising platforms like Airbnb, VRBO and others.
Murphy said this legislation would prevent cities like Anna Maria from conducting annual vacation rental inspections as part of its local vacation rental registration process. Murphy said Simmons’ legislation calls for the state to do any needed inspections, with local municipalities relegated to tracking vacation rentals based on voluntary participation from rental owners and managers.
“I see very little value in this compromise. It’s so watered down it would be meaningless to our city to even participate,” Murphy said.
Commissioner Carol Carter said a state-based inspection program would result in little to no inspection of Anna Maria’s vacation rentals.
Commissioner Doug Copeland said the city needs to be cautious of the Simmons legislation.
“Counties like Manatee County who have failed to collect any tax from Airbnb will be supporting it because it’ll require them to register with the state. They’ve not taken the initiative like we have,” Copeland said. “They figure this is the way to at least get some of that money. They could be a thorn in the side, so beware.”
Murphy also referenced the private property rights bill, SB 824, filed by Sen. Manny Diaz Jr. (R-Miami-Dade). He likened it to previously unsuccessful legislation proposed by former Sen. Greg Steube (R-Sarasota), who is now a member of the United States House of Representatives.
Steube’s past legislative efforts attempted to usurp city and county governments’ home rule rights when it comes to regulating vacation rentals by preempting that authority to DBPR.
Diaz’ legislation also seeks to preempt the regulation of vacation rentals to the state, requiring each person applying for a vacation rental license to provide DBPR with specified information.
“It’s the same old song that Steube introduced. It puts us out of business vacation rental-wise,” Murphy said of the potential impacts.
Murphy said the Diaz bill was written by Airbnb lobbyists and did not yet have a companion bill in the Florida House of Representatives, which is required for any state legislation to be adopted.
Murphy said it’s possible that Rep. Mike La Rosa (R-St. Cloud) could file the companion bill, as he did last year for Steube’s failed legislation.
Sen. Bill Galvano (R-Bradenton) is now serving as the new Senate president, and Murphy hopes that local connection provides some opposition to these latest attacks on the city’s home rule rights.
“He has at least passively, if not somewhat overtly, said that he’s opposed to it,” Murphy said.
Murphy said Sen. Joe Gruters (R-Sarasota), who is also the new head of Florida’s Republican Party, might be a potential ally.
“He has told me that he felt our pain about the vacation rentals. Unfortunately, we did not get his vote last year,” Murphy said. “We’ll get our defenses up. I think it’ll be the same old game that we fought before.”
Lobbyist Chip Case is again assisting the city with these legislative matters. Last year, he and City Attorney Becky Vose helped derail Steube’s vacation rental legislation by getting a sexual predator amendment introduced and adopted.
“Chip was instrumental in killing it. He was the rainmaker last year. Hopefully, he can cut through and be the rainmaker again this year,” Murphy said.
Murphy said it’s also important for residents to become engaged and share their views with state legislators.
This can be accomplished with personal visits, phone calls, letters or email. A complete list of Florida Senators can be found online along with a complete list of Florida Representatives. All proposed legislation also can be tracked at these websites.
