5 Things to Consider When Purchasing in the Florida Keys Real Estate

5 Things Every Florida Keys Buyer Should Know
Buying a home in the Florida Keys is an exciting adventure, offering unparalleled waterfront living, stunning natural beauty, and a laid-back island lifestyle. However, before purchasing a property, it’s crucial to understand a few key factors that set the Florida Keys apart from other real estate markets. Here are the five essential things every buyer should know before purchasing a property in the Keys.
1. Can I Rent Out My Florida Keys Property?
Many areas in the Florida Keys have rental restrictions that prohibit short-term rentals for fewer than 28 days. These regulations are enforced by local municipalities and Monroe County to manage tourism and maintain neighborhood integrity. If you’re considering using your property as a vacation rental, it’s essential to verify local zoning laws and rental permit requirements.
Areas such as Marathon and Key Colony Beach are allowed to have 7-day minimum rentals throughout the majority of the Cities. Available Properties
👉 Tip: Work with a knowledgeable local real estate agent who understands Monroe County regulations to ensure the property aligns with your intended use.
2. How Much Is Insurance in the Florida Keys?
Due to the region’s vulnerability to hurricanes and flooding, insurance in the Florida Keys can be significantly higher than in other areas of Florida. Flood zones, elevation certificates, and windstorm mitigation reports all play a role in determining your insurance premiums. Ask your Realtor to gather Insurance Information for you prior to making an offer on a property so that you are fully aware of the carrying costs associated with the home.
If you will be utilizing financing you will be required to hold Windstorm, Flood, and Homeowners Insurance on the home. There are various ways to lower these insurance premiums by updating windows, getting a new roof, updating electrical, etc.
You know what they say – Cash is King. If you are able to pay cash for your property you can choose whether you would like to hold insurance on the home – WE ALWAYS SUGGEST HOLDING LIABILITY INSURANCE – & saving money to the side dedicated for repairs as they come along.
👉 Tip: Before making an offer, obtain an insurance quote from a local provider to understand the full cost of owning the home. Homes built to newer building codes often have lower insurance costs.
3. What Should I Know About Waterfront Property in the Florida Keys?
Owning a waterfront home in the Florida Keys is a dream come true for many buyers. Waterfront properties offer breathtaking views, direct access to boating, and a chance to enjoy marine life right from your dock. Additionally, waterfront homes tend to appreciate faster due to high demand and limited inventory.
However, there are some important considerations when owning a waterfront property. Hurricanes and flooding are potential risks, and properties closer to the water may require higher maintenance due to salt air exposure, which can affect metal fixtures, electrical systems, and exterior finishes over time. Dock maintenance is another factor, as seawalls and pilings may need repairs due to natural wear and tear.
👉 Tip: If boating is a priority, ensure your property has adequate dockage, proper water depth, and bridge clearance for your vessel. Additionally, be prepared for the maintenance needs of a waterfront home to keep it in top condition.
4. Is It Expensive to Live in the Florida Keys?
Living in the Florida Keys comes with a higher cost of living due to limited resources, tourism-driven demand, and transportation expenses. We see the price of homes being at a premium but taxes staying around 1% of the purchase price in most cases.
Due to our lack of “shopping” most owners either order and wait for the items to be shipped, take a day trip to the mainland for items such as clothing, furniture, etc., or shop at the local shops in town. Everyday necessities, including groceries and gas, tend to be the same when compared to mainland Florida.
👉 Tip: Make sure to budget for higher living expenses, and consider whether you’ll need to travel to the mainland frequently for certain amenities or services.
5. Are There HOA Rules in the Florida Keys?
Unlike many other areas, the Florida Keys have very few homeowners associations (HOAs). Most HOAs are found in condominiums rather than single-family home communities. Condo HOAs typically have rules regarding property maintenance, rentals, and common area usage, while most standalone homes do not fall under HOA restrictions. The benefit to owning a Condo with HOA fees included is the majority of these associations cover Insurance costs, maintenance, and have amenities such as swimming pools, dockage, tennis courts, and fish cleaning stations.
👉 Tip: If you’re considering a condo, review HOA documents carefully to understand any fees, rental restrictions, or maintenance responsibilities.
Final Thoughts
Purchasing a home in the Florida Keys is a dream for many, but it’s essential to go in with a full understanding of the region’s unique real estate landscape. By working with an experienced local agent, understanding insurance and zoning laws, and being prepared for the cost of living, you can make a well-informed decision and enjoy your slice of paradise stress-free.
📞 Thinking about buying in the Florida Keys? Contact Jamie Engel and The Florida Keys Home Team at Coldwell Banker Schmitt Real Estate Co. today to start your home search!