Frequently Asked Questions when buying a home in Florida:

Q: Can a British citizen buy a home in Florida?
A: Yes, you will require proof of identity.

Q: How long can I stay in the U.S and do I require a visa?
A: A visa waver, which you complete on the plane before landing, allows you to stay for 90 days.
If you want to stay for 6 months you will need to apply for a B1 visa, which allows you to spend 6 months in the U.S.
It is easy to obtain, but must be applied for at the American Embassy.

Q: Will I be liable to pay tax on my rental income in both the U.S and the U.K?
A: No, if you own a holiday home in the U.S you will not be double taxed, i.e not pay tax in the U.K on your U.S income.
The account will always show the home running at a loss you will however pay sales tax and tourist tax on the income monthly in arrears totalling 10% in Polk County or 11% in Osceola.

Q: What is the break even figure in terms of rental income?
A: Assuming you have a 75% loan, break even to cover all operating costs and the loan, is approximately 34 weeks.
Owners that are prepared to market for bookings themselves in addition to the management company, bookings are obtaining an average of 42 weeks per year, and these figures can be used on 3 to 5 bed homes, because although the purchase of a 5 bed home will cost you more, you will receive a higher rental.

Q: What can I expect to pay in management fees?
A: Management fees can vary from company to company, but they generally charge about $100 per month for managing the property –this is in addition to the monthly bills for power, utilities, cable TV. Telephone, grass cutting, pest control and pool cleaning ( which will be approx $450 - $500 per month )

Q: Is refuse included in the monthly expenditure?
A: It is included in the utilities.

Q: How much commission do they charge for rentals?
A: If a management company place a booking in the property they usually charge about 15% - 20% commission.

Q: Can you rent out property anywhere in Florida?
A: No, there are areas that do not allow this, always check with your Licensed Real Estate Broker that the area you are thinking of buying into will allow this.

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