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Southwest Florida is a prime location for people to bring their family and friends to vacation. Whether it’s the golf, beaches, or just the beautiful weather, Southwest Florida has solidified itself as a great destination for vacations. This has made tourism a major industry, and one of the biggest areas of tourism is hotels and rentals for families staying in the area.

However, in recent years families have been more inclined to try to rent a home for a short period rather than booking a hotel room. According to Section 509.013(4)(a)(1.) of Florida Statutes, a short-term rental is defined as a residence rented for less than thirty days and rented out more than three times a year.

With the rise of the vacation rental industry, local governments and their residents have seen the impacts they have on the community. This led to two major questions – how can local governments regulate these short-term rentals or how can they prohibit them?

History of Short-Term Rentals

Vacation rentals have always been popular but were not always readily available or easy to find. A revolution occurred in the early 2000s with the rise of the internet and along with that came online rental platforms. Now there are many different platforms, such as Airbnb and VRBO, which made short-term rentals much more available. Further, this led to an overall increase in the number of rentals available.

This increase in rentals led to issues amongst local governments and their citizens because of the impacts short-term rentals had on the community, both positive and negative. Local governments began to ban or create regulations around these short-term rentals. Because of the divide and lack of consistency in regulation by local governments, the Florida legislature created a law that prohibited any local government from banning short-term rentals and limited how they may be regulated.

Effect of the New Legislation

Continue Reading Can Your Local Government Ban Short Term Vacation Rentals?

Hurricane Ian made direct landfall in Southwest Florida, destroying thousands of homes and buildings. The destruction will now require the mobilization of hundreds of contractors in the construction industry. Unfortunately, a tragedy like Hurricane Ian will also attract a number of unlicensed contractors who will try and take advantage of desperate victims trying to rebuild their homes and businesses.

As Southwest Florida starts the rebuilding phase, here are a few things residents should be aware of:

Before you hire a contractor, ask to see their state-issued license

Whether you need roof repairs or mold-related services, you want to ensure the person you hire is licensed and insured. The definition of “contractor” under Section 489.105, Florida Statutes, requires that any person who seeks to

construct, repair, alter, remodel, add to, demolish, subtract from, or improve any building or structure” must have a license.

Allowing an unlicensed contractor to perform work on your property puts you at risk of liability and could cost you more in the end. Generally, unlicensed contractors do not have workers’ compensation and liability insurance. As a result, the property owner may be liable for any injuries that occur on site.

You may check your contractor’s license by going to www.myfloridalicense.com.

Unlicensed contracting is a felony

In Florida, unlicensed contracting is generally charged as a first-degree misdemeanor, with penalties of up to one year in jail or 12 months of probation, and a $1,000.00 fine.Continue Reading Unlicensed Contractors: What You Need to Know

As a result of Hurricane Ian, permits and development orders may qualify for an extension. According to Florida Statute § 252.363, when a governor declares a state of emergency permits can be extended for the duration of the state of emergency. Additionally, permits will be extended six months after the state of emergency expires.

Executive Order 22-218, which declared a state of emergency, was made effective on September 23rd, 2022, and if it is not extended, it will expire 60 days after its announcement, which is November 22nd, 2022.

First, it is important to note which counties are affected by this state of emergency. Initially, Executive Order 22-218 declared a state of emergency for a list of specific counties. But, on September 24th, 2022 Governor Desantis issued Executive Order 22-219 expanding the state of emergency from the specific counties originally listed to the entire state of Florida.Continue Reading Due to Hurricane Ian, Florida development orders and permits qualify for extensions

Henderson Franklin was again honored to sponsor 2022 Market Trends, which took place on March 16, 2022, with speakers Randy Thibaut, founder of Land Solutions, Inc., Denny Grimes, President of Denny Grimes & Team at Keller Williams Realty, and Justin Thibaut, CEO of Land Solutions, Inc.

The presentation discussed the current conditions of the real estate market in Southwest Florida and provided a future forecast about what the market may look like in the coming year. The presentation also focused on the primary areas of the real estate sector: residential development, resale properties, and the commercial market.

Overall, the end of 2021 was a continuation of the rapid growth that comprised 2020 and 2021, as waves of new residents and businesses entered into the market. All sectors of the market are currently seeing growth, but nowhere is this more evident than with residential development and resale, as low inventory coupled with high demand has prompted price fairly dramatic price increases across the three counties of Lee, Collier and Charlotte. The ultimate question, however, will be whether this will continue or will the market begin to decline as prices continue to creep up higher.

Residential Development

In 2021, Southwest Florida saw a 47% increase in new single-family residential permits issued amongst the three counties, with Lee County seeing the highest increase of 59%. Total residential permits increased 39% percent to approximately 25,000 permits. These percentage increases, while dramatic, still pale in comparison to the number of permits issued in 2005, which numbered around 44,000 permits prior to the crash in 2008. Similarly, multi-family residential permits increased by 19% over the last year.

These numbers illustrate that low resale inventory is driving up the prices, leading buyers to seek new construction and rental properties. Presently, the current inventory of resale properties cannot match the demand of new homebuyers entering the market, leading to homes rising in value by as much as 77% in some areas over the last year.Continue Reading The Pulse of Southwest Florida Real Estate: A Recap of 2022 Market Trends

Florida Gulf Coast University recently released the January 2022 edition of the Southwest Florida Regional Economic Indicators. The report shares economic data for the region, including an update on the real estate market status across the coastal counties of Lee, Charlotte and Collier. Overall, the report indicates that the real estate market is leveling off after fairly dramatic swings brought about by the COVID-19 pandemic.

Building Permits

Single-family building permits, the metric which indicates the number of new homes under construction, saw an increase of 40% from November 2020 to November 2021. Yet, while this growth indicates increases in new construction from earlier stages of the pandemic, a comparison of more recent numbers actually shows a slow decline over the latter half of 2021.

For example, at the peak of the pandemic housing boom in May 2021, approximately 1,100 new single-family permits were issued by Lee County. However, that number dropped over 18% to roughly 900 permits the County issued by November 2021. These numbers seem to indicate that in the early stage of the pandemic, new construction fell off, likely due to concerns over the economy, material and supply shortages, labor shortages, and a variety of other pandemic-related factors.

In 2021, Florida attracted thousands of new residents seeking to enjoy warmer weather and less stringent COVID restrictions. However, it appears now the population influx into the state may be beginning to slow, which in turn is resulting in a leveling off in new construction. Whether this pattern continues now that more seasonal residents are returning to the area remains to be seen.

Existing Single Family Home Sales & Active Listings

Continue Reading State of the SWFL Real Estate Market

Are you aware that the standard Florida Association of Realtors/Florida Bar Contract, often referred to as the “FAR/BAR Contract” has changed? Below is an overview of the revisions to the FAR/BAR Contract for Sale and Purchase, “AS IS” and other residential forms which were discussed earlier this year and have now become effective as of November 1, 2021.

Major Updates to the Standard Form

Section 8(b) – Loan Approval Period

Two tasks are to be completed during this period now. The first is that the buyer must obtain approval for financing as described in the section. This is consistent with the prior version of the contract. However, the new requirement is that the buyer’s lender must receive a satisfactory appraisal before the approval period expires.Continue Reading Overview of Changes to “FAR/BAR” Contracts Effective November 1, 2021

Henderson Franklin was proud to sponsor the real estate event Market Trends, which took place on Thursday, September 9, 2021, at the Caloosa Convention Center, downtown Fort Myers. The speakers included Randy Thibaut, CEO of LSI Companies, Denny Grimes, President of Denny Grimes & Team at Keller Williams, and Justin Thibaut, President of LSI. The presentation focused on the real estate market in Southwest Florida in 2021; and, more specifically, on three major areas of the market: new residential construction, the residential resale market, and commercial real estate. The following provides a brief recap of the presentations.

Continuing the trend from the second half of 2020, both the residential and commercial markets in Southwest Florida sustained their momentum. New homebuyers continue to flock to the region and developers are trying to keep up with demand.

New residential construction market

The total number of new building permits for single-family and multi-family in Lee, Collier and Charlotte counties has continued to increase. 2020 saw a total of 18,418 residential permits issued. The year-to-date total for residential permits issued in 2021 currently sits at 14,272, with the projected total by year’s end estimated to be 23,400 permits issued. The past 12 months have seen a double-digit percentage increase in new permits in all three counties. Lee County saw an 11% increase, Collier a 22% increase, and Charlotte with an astounding 50% increase.

As was the case in 2020, individual communities continued to see astounding growth. The top three communities were Ave Maria, Babcock Ranch and Isles of Collier Preserve. To showcase that the residential market continues to grow, look no further than Babcock Ranch, which in 2020 saw 533 new building permits issued to various builders. It currently stands at 691 residential permits issued to various builders in 2021.

While the big builders like Lennar, DR Horton, and Pulte continue to dominate the market, we have seen a comeback for the small builders, with over 6,000 permits issued to these builders. An interesting new trend taking place in Southwest Florida is the build-for-rent model. This model appears to be aimed at a younger generation looking for homes, but wanting more financial flexibility. It will be interesting to see how this trend continues over the coming years.

While at some stage the market will likely level off, demand in the residential market looks set to continue in 2021 and the foreseeable future in Southwest Florida. As homebuyers continue to move into the region, developers look to continue buying up land and building single-family and multi-family units.

Residential resale market

Continue Reading Experts address the current state of the Southwest Florida real estate market

It feels like tax season is always upon us, and this time of year is no different. The month of August, and specifically the second week of August, marks the typical time of year when the Property Appraiser’s office sends out TRIM Notices to all property owners in the county. TRIM Notices are sent out for all types of property, including residential and commercial.

What is a TRIM Notice?

A TRIM Notice stands for the “Truth in Millage” notice, and reflects the official notice of proposed property taxes as required by Florida law. The TRIM Notice is not your property tax bill, but is an estimate of your property taxes based on the proposed millage rates for that taxing year, your property values as of January 1 of that taxing year, and any applicable exemptions applied to your property, such as your homestead exemption.

If your TRIM notice isn’t a bill, then why is it important?

Continue Reading August Marks TRIM Notice Season

For many residents of Florida, the local news over the past weeks focused on images of large scale fish die-offs and dark polluted water in the Tampa Bay and St. Petersburg areas. For those here in Southwest Florida, these images coming out of central Florida serve as a reminder of the summer of 2018, when toxic blue-green algae spilled out of Lake Okeechobee, down the Caloosahatchee, and ultimately into the Gulf of Mexico causing similar fish-die offs and red tide events.

Coincidentally, at the same time the events in Tampa were making national news, the Army Corps of Engineers conducted a public meeting which resulted in the adoption of a revised Lake Okeechobee System Operating Manual, or “LOSOM” for short. The plan was last revised over a decade ago and governs the Army Corps’ management of the water levels in Lake Okeechobee.

The most important aspect of this management plan is the freshwater releases down the St. Lucie River, Caloosahatchee River and through the Everglades into Florida Bay. The Army Corps, as the executive arm in charge of these releases, drain and store water to assist with flood control, system ecology, and agricultural irrigation around the Lake. The adoption and modification of the LOSOM plan are governed by the Comprehensive Everglades Restoration Plan, codified as section 601 of the Water Resources Development Act of 2000.

Alternative CC

Considering the Congressional mandate of the Everglades Restoration Plan, along with public input from numerous stakeholders across South Florida, the Army Corps at a July 15th meeting considered a number of revised management plans. The Army Corps ultimately decided on the plan known as Alternative CC, which was largely supported by conservation groups who viewed the plan as a more balanced approach to solving the water quality issues across South Florida.

How does this new plan impact Southwest Florida?

Continue Reading Army Corps of Engineers announce new Lake Okeechobee Management Plan

In 1995, the Florida Legislature took bold steps to protect private property rights by enacting the Bert J. Harris, Jr. Private Property Rights Protection Act, better known as the Bert Harris Act. The Act created a new cause of action for private property owners whose real property is burdened by government action, such as a new ordinance or regulation that limits development of a piece of property. The Act gave private property owners peace of mind when it comes to being able to use and develop their property the way they want to.

During the 2021 legislative session, the Florida Legislature took steps to strengthen the Bert Harris Act in favor of private property owners through HB 421/1101.

Procedurally, the bill passed both the House and Senate chambers, but has not yet been signed by the Governor.

What impact will this bill have on Florida landowners?

Continue Reading New Legislation Designed to Relieve the Burden on Landowners Filing Bert Harris Claims