Frequently Asked Questions and Answers
Once rented, how does the tenant pay the rent?
The tenant pays the management company who will pay for the utilities, condominium expenses and property taxes at the end of the year in addition to the collection of rentals. The management company will transfer the funds to the owner’s current account (wherever they want it) on a monthly basis or as will be indicated by the owner himself, in addition to sending a clear monthly or quarterly report, cost / earnings estimate. Obviously, for those who prefer it, the tenant can also pay directly to your account.
My concern is that the apartment will be offended for too long, who assures me that you rent it?
The properties that Caseinflorida.it propose have been selected by area, features and many other parameters that guarantee a rental in very short time, if the apartment is not already rented as in most cases.
To date, the historian of our experience shows that a real estate unit is always rented out over a period of time ranging from 1 to 45 days.
What if the tenant does not pay rent?
Law in the United States is very clear and protects the owner 100%; If a tenant does not pay the rent comes the eviction, a very fast procedure that does not take more than 34 days.
Specifically, the eviction can take place for three reasons:
1) Not to pay the rent. For contract there are usually 3 to 5 days of grace and generally a $ 50 penalty. If the tenant does not pay within the established time, the owner (the management company will look after this for you) can send by mail with return receipt or post on the tenant’s door, a notice to pay the rent within 3 days (Excluding Saturday and Sunday and holidays), specifying the total rent or evacuating the apartment. Otherwise the owner can proceed with the eviction practices or by a lawyer or go directly to the court.
2) For violating the contract and the laws of the Statute.
3) By abandonment. Abandoning this is meant to be absent for half a month without paying the rent and without warning the owner of the absence in writing. Evacuation procedure. Florida is forbidden to evict without the tribunal’s order.
An eviction notice is given in writing if the rental has not been paid. The tenant has 3 days to honor the debt or to evacuate.
After 3 days the owner protests a lawsuit and cites the tenant in court. The management company will start all the procedures for the customer and after it has warned.
Upon receipt of the quote, the tenant has 5 working days to answer in his defense at the court and to be able to expose the case even if he is obliged to deposit, always at the court, the total rent due.
If the tenant does not reply to the quote, the judge will authorize the Sheriff to evict the tenant. If you answer the quote, a date will be set for the hearing.
If at the hearing the tenant loses the dispute, the tenant will have to pay twice the rent due, court fees and any court fees of the owner’s lawyer. If the tenant does not appear at the hearing, he loses automatically.
If the owner wins the dispute, the judge issues a mandate to the Sheriff who authorizes the owner to take over the apartment only 24 hours after he signs a notice in the condo of the eviction. At this point the owner or administrator can legally change the lock and, after 48 sheriff’s notice, may be seized of any personal effects that can be sold to recover the rent and other expenses.
Are the apartments rented furnished?
Apartments are almost always rented without the furniture. Those furnished in general are for short rentals, for 6 months or monthly, where it is allowed by the condominium and the common. For annual rentals it is convenient to rent without the furniture because it is customary that the tenant brings with him the decor (excluding bathroom and kitchen which are included in the price and no equipment of the apartment).
What are the costs of a property in the US?
One property has 3 costs:
1) Property tax (our IMU … TASI or how we want to call it …) ranging from 1% to 2% of the property’s cadastral value (35/40% less than current market value). Property taxes are fully utilized by the federal state in infrastructure and expenses are visible online.
2) HOA (condominium expenses) which include the insurance policy on ordinary and extraordinary management / maintenance of public areas, facade and roof.
3) Property Management: a company that manages the property, searches tenant, pays utilities and anything else in addition to paying the property and submitting monthly reports. This cost varies from 8% to 12% and is standard in the US. Our Property Management Service generally costs 8%.
What are the costs to support at closing?
Charging charges may vary depending on the lawyer’s parcel rates, but they typically range about 1.5 to 3% of the sale price. Of course, for low-value units (eg 70-80,000 USD) this percentage rises somewhat because fixed charges have a higher incidence.
In general, the costs of a closing costs are the same for the Title Company (correspondent, coarse to our notary) and consist of legal expenses, registration fees, transcripts etc …
Optional, but Inspection and Title Insurance are recommended.
With Caseinflorida.it, you can take advantage of framework agreements with our local Partners that will allow you economies.
I would like to set up a company to name the apartment, what procedure should be started?
A LLC (Limited Liability Company), which would be a kind of a company, can also be established at a distance; Our staff can provide you with a variety of types of companies depending on your needs in 48 hours, as well as obtain the EIN Number (EIN Number) for you, which is essential to making the company active.
The company will have an annual renewal cost of 138.75 USD (federal tax).
Caseinflorida.it can deal with you for the constitution of an LLC.
Am I compelled to form a company?
No. But it may be advisable, especially for real estate property of some relevance. However, for a single value apartment for example below 100,000 euros, it may be an oversized mode; Obviously depends on personal situations and a thousand variables that need to be treated seriously, in a personalized way, with a tax consultant.
Among our Partners, there are also Italian merchants specializing in US operations in case of your request.
From the point of view of rent taxes, these tend to be always zero or almost if you are talking about only 1 rented apartment, as you can deduct a bit of everything (including air travel for house visit and expense of Stay, in addition to maintenance costs, management fees, etc), including depreciation of the unit that is calculated in 27 years. If there is a gain even after the abovementioned cost deduction (which is very difficult), the US rates are still very favorable.
Can I rent the house weekly or monthly?
This is regulated by the common and condominium. For example, on June 9, 2010, MIAMI BEACH voted “no” against short-term rentals. The town of Miami Beach is divided into several areas (regulator plan) including areas where commercial and residential areas are allowed. There are three types of residential areas:
RM-1: Residential Multifamily, low density. Typically, in this area, all apartments and houses are located in the avenues and roads from Drexel Avenue to Bay Road (going west to the bay). In the RM-1 it is forbidden to rent apartments for less than 6 months.
RM-2: Residential Multifamily, Medium Density. Typically, all apartments in Washington and Collins Avenue are in this area. RM-2 is allowed to rent for less than 6 months.
RM-3: Residential Multifamily, high density. Typically, all the apartments on Ocean Drive are in this area. RM-3 is allowed to rent for less than 6 months.
Agent / customer who says: “DO NOT IMPORT WHAT IS THE CONDOMINIUM OR MUNICIPALITY, I RENT ALL TIPS I WANT”.
Florida Statute, Chapter 718.303, paragraph 3 authorizes condos to apply a fine to the owner of up to $ 100 per day up to a maximum of $ 1000 for not complying with the regulations. If the fine is not paid and the regulation is not respected, the condominium has the right to sue by lawyer and even expropriate the apartment. It should be stressed that the municipality has the authority to impose a fine of up to $ 5000 per day (five thousand dollars). Before imposing fines, the offender generally has to appear in court.
What are the rental contracts?
Contracts may have variable duration; Generally the apartments we are investing for are invested for a period of one year; This does not mean that the tenant will come out at the end of the year, but every year the terms will be renegotiated. This factor plays for the benefit of the owner as the crisis had reduced house purchase prices such as rentals, so rental prices are on the rise and this will guarantee the owner an ever greater net yield.
How do I open a personal account or company name?
Caseinflorida.it will assist you in every step; We have agreements with some banks that will open you a 30-minute account with e-banking access and Visa card release. Opening your account usually requires your physical presence at the Credit Institution.
In general, the account does not have opening or closing costs, nor management unless there is a minimum balance (generally very low).
What are the US-Italian tax cuts?
Italy and the United States have a treaty that avoids double taxation (both from Italy and from America).
What do HOAs include?
For condos in general, including luxury ones, standard or basic maintenance charges also include water. With the exception of leases for short periods, the tenant will pay all expenses related to variable consumption supplies such as electricity, telephone, television and the internet, while all other condominium charges remain with the owner. The building’s insurance against floods, winds, fire and other insurance is governed by the condominium needs. Other expenses, included in the condo charges item may include security service, use of tennis courts, gym, sauna, barbeque area, whirlpool, boat mooring and the list continues … So services determine Condominium expenses.
For more information, we provide a consulting service that can advise and follow the customer by studying the best buying strategy as the case may be.