Frequently Asked Question about buying a Florida Villa

We realise that you may have a lot of general questions about how to go about buying a Florida Villa, what the process is, and how you can getfind the right management company to look after your Florida property. That is why we have put the most frequently asked questions from our clients below.

How will it work?

Our Florida real estate division is fully licensed and has an excellent relationship with all of the leading builders in Central Florida which ensures that our customers receive completely accurate and unbiased advice on which home styles and locations offer the best value for money and provide the maximum rental income. We offer both second hand homes (resales) and new off plan homes built by Engle, Park Square, Centex, Morrison, Greater, Wooldridge, American Heritage to name but a few. For the vast majority of our clients considering the purchase of a home in Florida, obtaining an income through the letting of their property is of vital importance. We offer a totally reliable and professional management operation so that in addition to helping you to choose the best home for your particular needs, we will manage and maintain your property on a daily basis and help you get rentals.

How easy is it to purchase a villa in Florida?

Purchasing a home in Orlando is in general terms much less complicated than in virtually any other country. The single most important factor is to ensure that you use the services of a fully licensed real estate broker. Our Orlando office is fully licensed by the State of Florida and will oversee the complete procedure, from the time that you arrive in Orlando to when your home is ready for occupation. This includes helping you to find the most suitable property, handling the legal aspects of the purchase, monitoring construction and taking photographs. Liasing with the mortgage broker and ensuring that the final paperwork is in order, carrying out the preoccupation inspection, co-ordinating the delivery of furnishings, organising the connection of all services and arranging the final occupation licences. These services are completely free to all our customers. Our fees are in the form of a commission claimed from the builder or seller at completion of the contract.

Can you arrange an Inspection Trip?

Yes. If you are interested in an Inspection Trip please Click Here.

I am concerned that when I visit Orlando I may not view the best properties that are suitable for my personal requirements. How can I be sure that any decision I take is in my best interests?

This is a concern shared by most prospective purchasers before visiting Florida. The best possible assurance you can have is to ensure that you select a company that is totally independent and can therefore offer you impartial and unbiased advice. Furthermore, it is very important that this company has offices in Florida and the U.K., is highly knowledgeable and expert in all aspects of Orlando property, and provides a professional and completely reliable management service. The owners and staff of Kingdom State Villas and their associated Florida companies have, between them, many years experience of property in Central Florida. With the knowledge that many satisfied clients have purchased in recent years, we can rightly claim to be one of the leading companies for sales of freehold homes in the Orlando area.

I understand that there are certain rental restrictions in Orlando - is this true?

Yes, there are certain restrictions as to where and where short-term rentals are permitted. The four counties that make up the majority of the Orlando area each have different rules relating to the letting of holiday homes. It is therefore essential to obtain correct professional advice and guidance as to the suitability of a particular property and location. We ensure that the property you select is compatible with your identified needs.

How many weeks do I need to rent our my villa to cover all the running costs?

This will be dependent on the type of property, location and amount of mortgage. As a general guide, if you take up a 75% mortgage you will need to rent out your home for about 30-35 weeks per annum to break even. Now there are exceptions to this, by reducing the amount of mortgage you take on the property this will obviously bring down the break even point or if you buy a resale property at a very good price. I have given you an expenditure example below on a 6 bed property that I sold recently, I know this is based on a 6 bed property but 80% of the costing’s on the 6 bed villa would be the same on any villa, for example the management, TV/Cable, Phone, H.O.A Fees, insurance would all be the same cost no matter what size property you had. Beware of ANYONE who offers you a guaranteed income though. Ask yourself where the money is going to come from if the tourists do not rent your property? Many a firm in Orlando has gone bust just as the guaranteed payments are due, only to open down the road with a new name. Companies that offer these guaranteed payments are in it just for themselves and are only interested in making money out of you.

How does the government tax work on the rental income?

We will introduce you to our accountants over in Florida and they will file all you tax returns for the property at the end of each year (cost about $300 per year), you should not have any tax to pay at all at the end of the year as you will have plenty of costs to claim against your property income, e.g. flights, car hire, food, repairs upgrades etc. The only tax you will have to pay will be your monthly sales tax and county tax which should be taken from the rentals, for example if you rent out the property for $1600 for a week then you will pay 7% to the state and 4% to the county. Of course if you or a family member is staying in the property then there would be no charge so then no tax is due. Anything that is made on the property on a sale or rental will be taxed over in America and will have nothing to do with any tax that you pay in the U.K..

What exactly are Closing Costs?

These are costs incurred when completing the purchase of a home. They comprise of a mortgage set-up fee (normally about 3% of the loan) along with the legal costs and registration of the property. However, due to our influence with the various developers in Orlando, we can normally negotiate a reduction in these fees on behalf of the purchaser. For example if you bought a property off plan from the builders then they usually offer up to $10.000 towards closing and if you bought a resale property then the seller would contribute towards your closing costs.

Are there any hidden costs that I should be aware of?

If you intend to let your property you will need to comply with local legislation. This includes obtaining a hotel motel lodging licence and ensuring that safety features such as fire extinguishers, emergency lights and smoke detectors are fitted. In addition, you may also be required to pay one month's mortgage and insurance payment in advance along with utility deposits. Your Management Company can handle most of this for you. Just about all your expenses are covered in the expenditure example that I gave you earlier.

Is it easy to open a USA bank account or would you pay the rent into my UK account?

You will need a U.S bank account as your direct debits will come out of this account for your TV, phone, electric, water etc. They are very easy to set up and sometimes this can be done from the U.K. The H.S.B.C. bank in the U.K. can sort out an account for you but you would normally do this while you are over in Florida by simply going into a local bank with your passport and $150 in cash.

What are H.O.A. fees (Home association fees) and who are they?

These are paid to a group of people who have been nominated by the community to look after the community, they will normally be permanent residents of the community who will arrange to cut and feed your grass, look after the common areas, make sure all the owners keep the resort tidy and generally protect your investment.

How do I know which Management Company to appoint?

This is not an easy question to answer. Appointing a professional management company to manage and maintain your home in your absence is vital. You are free to choose your management company and we can recommend some that we are comfortable with, including our own. The one that you select will depend on the range of services that you desire.

Am I covered by insurance in case of damage to my property?

Insurance in Florida is inexpensive and a standard policy will cover you for most eventualities. If you are letting your home, the management company should make provision to obtain a security deposit from each group of guests on their arrival to cover all accidental breakage.

Are there any restrictions as to the time I can spend in Florida?

Non USA residents are legally allowed to spend up to a maximum of 180 days in any one-year in the USA. It must be pointed out that if you are considering the possibility of retiring permanently to the USA, it is unlikely that you will be granted the necessary residential visa and expert advice should therefore be sought prior to making any commitments. This is a complicated area of immigration law that requires the advice of an expert lawyer. We can point you in the direction of some sound advice.

Is purchasing a property in Orlando a sound investment?

Providing that you purchase the correct type of property in a location that is suitable for short-term rentals, property in Orlando is one of the best property orientated investments currently available anywhere in the world.

I have booked a fly-drive holiday to Orlando but need to arrange accommodation - can you help me?

We can normally arrange for you to visit Orlando with just a few days notice. However, at certain times of the year, particularly Christmas, Easter and all school holidays, flights and accommodation are often in great demand and as a result visits made during these periods are more expensive.

Buying a Florida Villa offer a totally unbiased and independent opinion on all the locations, developers and builders. We will help you to find the perfect property that suits your own personal requirements and budget, not the requirement set out by the property sales company. Read More


Inspection Trips

We can arrange inspection visits whereby you will fly to Orlando and be met by a representative of our Florida Villa Sales team who will then accompany you to one of our luxurious Florida villas. Read More


Financing your Florida Villa's mortgage advisors can offer you a choice of either a UK based mortgage or a US based mortgage. They appreciate that their clients want the choice of or at least the chance to compare all different costs. Read More

Who will look after my Florida Villa? have teamed up with Kingdom State Villas Management to offer you peace of mind that your property will be fully looked after and managed. Read More