Florida, known as the Sunshine State and The Land of Oranges, is an extremely attractive place for real estate investors. It is world famous for tourism and more than 97 million tourists come to this place annually. This place caters to all sorts of travelers, be it solo travelers, backpackers, families, etc. Florida is also known for its incredible hotels and resorts, which is a great opportunity for investors to invest in. There are three aspects of Florida that you must keep in mind before you get started with investing in hotels and resorts: economic, geographic, and legal.
In the latest report, Florida had a growth of 4.0% in GDP (Gross Domestic Product). According to a 2018 report, Florida will keep steadily growing for the next 30 years. Its tourism sector will continue to dominate because of the steady population growth, and it will help diversify the economy of Florida.
The Economic Upsides of Buying Property in Florida: Florida has quite affordable property prices that make the initial stage of investment easier. The return on investment shows positive values according to recent studies because of the comparatively low property prices in Florida compared to the high demand. Investment in properties in Florida is always great because the investor can choose from a lot of options and has the freedom to choose the investment strategy as well. Especially if you're investing in hotels and resorts there is a lot of room for development. And as the economy grows and Florida flourishes, investors will earn a lot of money.
Loan Difficulties: It's important to note that it's especially hard here in Florida to get a mortgage loan for hotels and resorts (properties in general). Because of the affordable property prices, everyone without the capital tries to get hold of the loans, so the loan market is a bit saturated.
The Economic Downsides of Buying Property in Florida: Sometimes the property market, especially hotels and resorts prices fluctuate. In these situations, investing in hotels can get you to lose a lot of money.
Florida is situated on a large peninsula between the Gulf of Mexico and the Atlantic Ocean. Florida is surrounded by water and amazing beaches. Its land is low-lying and flat. Topography, with simple rolling hills, is found in Northern Florida. But we must also keep in mind the relatively low elevations. We must evaluate these situations in order to invest in hotels and resorts. It's not unknown to make losses in the hotel and resort business in Florida just because of wrong place selection.
Advantages: Geographically, Florida is one of the best situations for hotel and resort business. Florida, in the last quarter, broke the record for most inbound tourists despite it had bad weather. But, generally, its weather is to be jealous of. We must also mention the mere fact that Florida is home to Miami Heat, arguably the best team in the NBA. Thousands of people pour in to see them play in Florida.
Rain in Florida: Florida's climate can highly affect your investment decisions, based on the kind of hotels and resorts you're going to invest in. In certain times, you must consider the loss that rain can incur. Maritime location and southern U.S. latitude affect raining in Florida. Northern parts are more humid compared to the south, and the southern portions tend to be completely tropical. The average temperature of Florida in January is 45.6 degrees F and in July it's around 89.3 degrees F. Investors should also note that the state is sometimes prone to hurricanes.
Walt Disney: Disney World in Orlando is one of the most visited places in the whole world. The reason the hype train of Disney World has not come down over all these years is because the things you can do in this place has grown with time as well. People from all over the world visit this state just to come to Disney World, so the area surrounding can make an amazing investment opportunity in terms of hotels and resorts. But, expect the prices in the surrounding area to be relatively high, but compared to the demand that’s understandable. It’s also important to note that, this could be an amazing opportunity (if any arises) because banks would be willing to invest if the hotels or resorts are around the surrounding area as well. Investors must also consider these places: Water Parks of Blizzard Beach, Typhoon Lagoon, Disney's Hollywood Studios.
Florida has enacted different laws to protect its tourists. If someone is staying at hotels or resorts in Florida, it’s likely that they are here for the purpose of tourism. Tourists can take legal actions and redress against any hotel or resort for damages economically and non-economically.
Hotel Safety and Security Laws:
The common law of Florida aka negligence law states that hotels and motels must be compelled to compensate guests if they are found to neglect security, where the guest is a victim of a crime (assault, rape, robbery, etc.). If the victim can prove the hotel did not fulfill its legal duty to protect and secure the guest, these hotels can be seriously penalized. In addition, since the state legislature has determined that it is important to safeguard the welfare, the safety of people using our public lodging facilities in connection with certain issues, the legislature has enacted the following laws to protect guests of the hotel:
Florida Statute 509.211, relating to safety standards for matters that include locks on doors and railings on balconies and stairs; Florida Statute 509.215, relating to fire safety and fire sprinkler systems; and Florida Statute 509.221, relating to sanitary regulations, which include showers, toilets, lighting and heating, and cooling systems.
Federal law doesn't affect the tourists because the United States Government doesn't get much involved. The hotels and resorts' management though can very well be affected by the federal law though. It can directly impose law into the investments, and when you don't know what you're doing and don't know your way around the law, you could easily get penalized. It's important to make investment decisions based on federal law.
Issues with Co-ownership:
It's important to know this law because for the purpose of collecting capital you might want to jointly invest in a hotel or resort. In Florida, two people can jointly own condos or hotels without being related or being married. Joint tenancy is the most common type of ownership possible in Florida, the other two are a tenancy in common and tenancy by the entireties.
No one can guarantee that investing in the Hotels and Resorts in Florida will be an instant success and that the positive indications in this article will allow for a positive effect in the finances because it's never a yes/no decision. The facts must be considered and analyzed, to make a perfect investment decision and there also must be luck in order to get the perfect opportunity taking into consideration all the aspects.