FEMA's recent decision to revoke a 25% discount on flood insurance for several communities in Southwest Florida, is likely to have significant consequences for local real estate markets. This change comes as part of adjustments to the Community Rating System (CRS), a program that rewards municipalities for adopting superior floodplain management practices.

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Real Estate Impacts:

1. Rising Costs for Homeowners: The loss of the discount means higher flood insurance premiums, a critical factor for buyers evaluating the cost of homeownership. This could deter potential buyers, especially in areas already grappling with economic recovery from Hurricane Ian​

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2. Property Values: Increased costs may put downward pressure on property values, particularly in flood-prone areas. Buyers may look for alternatives in regions with lower insurance costs or better flood management ratings​

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3. Recovery Challenges: Communities like Fort Myers Beach, still recovering from Hurricane Ian, Helen, and Milton face additional financial strain. FEMA cited issues such as unpermitted work and non-compliance with floodplain management as reasons for the rating downgrade, further complicating efforts to rebuild​

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Local officials and residents are advocating for FEMA to reconsider its decision, emphasizing the region’s efforts to meet federal standards. The abruptness of the announcement—without prior consultation or detailed justification—has left municipalities scrambling to respond. Leaders in affected areas are urging FEMA to work collaboratively to address compliance issues and restore the discounts​

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For the real estate market, these changes highlight the critical role of government policies in shaping housing affordability and resilience. Buyers, sellers, and investors in Southwest Florida will need to navigate a more complex landscape as flood insurance costs become an even greater factor in property transactions.

In Cape Coral / Ft Myers, two prominent local businesses, Nastar Roofing and Beattie Development, have recently faced legal and ethical challenges that have shocked the community. Their actions have raised significant concerns about accountability and trust within the local construction and development industries.

Nastar Roofing, a long-standing roofing company in Cape Coral, was implicated in a major tax fraud scheme involving its owner, William Skaggs Jr., and administrator, Billie Adkison. From 2013 to 2023, they systematically avoided paying federal payroll taxes by predominantly compensating employees in cash. This scheme involved withdrawing over $21 million from the company’s accounts while evading nearly $2.5 million in tax obligations. Both Skaggs and Adkison pleaded guilty to conspiracy charges and now face up to five years in federal prison, alongside restitution payments to the IRS, including $1 million upfront before sentencing​

Beattie Development, a once-respected development firm, has also come under scrutiny. Its owner, Paul Beattie, faced legal repercussions after failing to comply with state regulations, leading to the surrender of six contracting licenses. The violations stemmed from poor project management and allegations of financial mismanagement, causing significant delays and financial loss for clients. As part of a settlement, Beattie must pay $300,000 before reapplying for his licenses. This case has left many customers questioning the integrity of the firm and seeking restitution​

These controversies have highlighted the need for robust oversight and due diligence when hiring contractors and builders. Both cases serve as cautionary tales about the potential consequences of unethical business practices—not just for the companies involved but for the communities they serve.

As Cape Coral rebuilds trust in its local businesses, it's crucial for consumers to demand transparency and for regulators to enforce stricter compliance to protect public interests. For now, Nastar Roofing and Beattie Development remain symbols of how cutting corners can lead to devastating consequences.

                   November 2024 Market Update
Our market updates over the past 2 years have hopefully prepared you for the declining market that we are currently experiencing. In the June 2024 update, I said “All indications are that it will get worse before it will get better”, and this has proven to be true. Based on today’s update we are still amid that declining market. We are currently experiencing another downward push on rental prices (we are continuing to reduce rents), an increase in vacancies, and an increase in time to fill units. We have been in contact with other individuals throughout the state and they are all saying the same thing – prices are down, time to fill units is up, and evictions are up. Below is the factual data.

Rental Inventory & Median Rental Prices (The data is for Ft Myers and Cape Coral)
As stated in previous updates throughout the year, we were expecting an increase in inventory and a decrease in rental pricing. YOY we went from a low of 1,803 to a high of 2,209 which is a 22.5% increase in inventory. From May – Oct it appeared the inventory leveled out but in November we are currently seeing a 200 unit increase over October. Which is the reason for this update.
The median rental price has a direct correlation to the increased inventory. As you can see in the charts and we saw decreasing rents from May – Oct while at the same time inventory increased. In November we have seen the same exact pattern – inventory increased, prices are dropping, and the time to procure a qualified tenant increased. This month we have matched our highest vacancies, 49 (May of 2024).
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Sales Numbers
As you look at the chart you will see that almost all of the YOY numbers are going in the wrong direction; Median Price – 3%, Closed Sales -13%, DOM + 54.3%, Inventory +15.1%, and MOS +32.3%. As we sit in November, I can tell you that the inventory numbers, as of today, are above 5,000, which is 1,000 over October. It seemed like once Trump won the race that a flood of inventory came on the market. Real estate is VERY slow to react and will take a minimum of a year before we see how the Presidents economic policies affect us. In my opinion, the folks that blindly listed their properties based on the presidential election will force the prices down even further. We will truly know the outcome once we are in season and can see what the buyer’s market turns into.
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Future
With the current reduction in interest rates (.5% and .25%) we may see a slight increase in home sales. It normally takes at least a 1% reduction and several months before it is actually realized in real estate sales. I am confident that “Drill Baby Drill” (aka reducing the price of oil, aka reducing everything that is transported) will directly impact the cost of goods thus increasing tenants and buyers purchasing power. I am also confident that we will see a decrease in interest rates throughout the next year. I am not confident that the deportation of illegals will help with the pressures of declining rents or reducing inventory. My crystal ball tells me that if all goes well, we should see stabilization of rents and sales prices somewhere between March – October. And, just maybe, an increase towards the end of the year.

Thank you,

Adam Bartomeo
Broker

This is pricing from one of our competitors. They are a large property management company that is not only in Cape Coral and Ft Myers, but they are also throughout SWFL. Compared to our pricing they are way overpriced! They have a 10% management fee which is the same as ours. They have a leasing fee of one month's rent, we have a leasing fee of half a month's rent. They have a release fee of $250, we have a release fee of $60. This is a major competitor in the area that is taking advantage of owners. I guarantee that there are hidden charges throughout the property management agreement where the owner will continue to get taken advantage of. I've read over hundreds of property management agreements from different companies, and I have yet to find one that is as fair as ours. Show, why do people work with these types of companies? The answer is... marketing budget. These types of companies a lots of ad dollars to get your attention. Owners think because they show up on the top of Google that they are the best company but that's not the case. They spend the most money towards advertising and this is why their prices have to be higher. We do very little marketing and base hour growth on recommendations, word of mouth, and natural growth of our investors. When looking for a property management company I would highly advise skipping the top three of 4 because those are typically paid advertisements not the best company You should go down a little further and start doing your research from there.

Every month for the last 6 months we have been visiting new builds for owners. We have had a rash of problems with a lot of builders in Cape Coral. Several owners have had to switch builders midstream. These owners are building in Cape Coral, don't have anyone local, and can only rely on what the builder tells them. These owners were surprised when the videos that we were sending them did not match what the builder was telling them.

We provide this service to them free of charge and without any signed agreements to do business. We do this because these owners have been put through the ringer with their builders and we feel that it is the right things to do. We are trying to ease the tension in this stressful situation and not add to the tension. We hope that in the end the owner will also do the right thing and allow us to work with them. We are not looking to make a quick buck from our owners but to build a lasting relationship that is mutually beneficial.

Below are a couple of comments from a couple of owners.

Thank you for the video, Andrey and I appreciate the time you take to take these. Goes without saying we'll gladly hire you to PM for us. Once this house is built of course

Thank you sooooooo much for visiting our property. I appreciate you doing an in person viewing of your rentals for your owners after this hurricane. 

New Rental Listing 3305 44TH ST SW - Bartomeo Property Management

https://youtu.be/S_ueqF_oCmc

Getting Units Rent Ready

https://youtu.be/KXS2nGIM7v8

Pre and Post Hurricane- Bartomeo Property Management

https://youtu.be/kbWf4z-3ftE?si=RcR5ZTiLYYhAUP0C

The role of a landlord has evolved significantly over the years, shaped by shifts in technology, changing tenant expectations, and economic factors. As we move further into the 21st century, the future of landlording promises even more transformation, driven by emerging trends and innovative solutions. From smart technology to new management practices, the landscape of property management is set to undergo a profound shift. Here’s a look at what the future holds for landlords and how they can adapt to stay ahead.

1. The Rise of Smart Technology

Smart Homes: The integration of smart technology in rental properties is becoming increasingly popular. From smart thermostats and lighting to advanced security systems, tenants are seeking homes that offer convenience and energy efficiency. Landlords who invest in these technologies can attract tech-savvy renters and provide added value.

Remote Management: Smart home devices also facilitate remote management, allowing landlords to monitor and control properties from afar. Features such as remote lock access, video doorbells, and real-time maintenance alerts enable landlords to manage their properties more efficiently and respond to issues promptly.

Data Analytics: The use of data analytics will play a crucial role in the future of landlording. By leveraging data collected from smart devices and tenant interactions, landlords can gain insights into property performance, tenant behavior, and maintenance needs, leading to more informed decision-making.

2. Enhanced Tenant Expectations

Personalized Experiences: Today’s tenants expect more than just a place to live—they seek personalized living experiences. From custom amenities to tailored communication, landlords will need to focus on creating a unique and engaging experience to meet these expectations.

Sustainability and Eco-Friendly Practices: Environmental consciousness is on the rise, and tenants are increasingly looking for eco-friendly living options. Landlords who incorporate green practices, such as energy-efficient appliances, sustainable materials, and waste reduction programs, will be better positioned to attract environmentally conscious renters.

Flexible Leasing Options: The traditional long-term lease model is being challenged by the growing demand for flexibility. Short-term leases, month-to-month arrangements, and furnished rentals are becoming more popular, and landlords who offer flexible leasing options can cater to a broader range of tenant needs.

3. The Impact of Automation

Property Management Software: Automation is streamlining property management tasks, from rent collection and maintenance requests to tenant screening and lease agreements. Advanced property management software can simplify these processes, reducing administrative burdens and improving efficiency.

AI and Chatbots: Artificial intelligence and chatbots are revolutionizing tenant communication. These technologies can handle inquiries, schedule viewings, and provide immediate support, enhancing the tenant experience and freeing up landlords’ time for more strategic activities.

Maintenance Automation: Predictive maintenance powered by AI can anticipate issues before they arise, allowing for proactive repairs and reducing the risk of costly emergencies. Automated maintenance scheduling and tracking ensure that properties are kept in top condition with minimal manual intervention.

4. Shifts in Rental Markets

Urban vs. Suburban Demand: The COVID-19 pandemic has accelerated shifts in rental preferences, with many tenants seeking larger spaces and more suburban or rural locations. Landlords will need to adapt to these changing demands by considering property investments in emerging rental markets.

Affordable Housing Solutions: As housing affordability becomes a growing concern, there will be increased pressure on landlords to offer affordable rental options. Creative solutions such as rent control, subsidized housing programs, and innovative financing models will be essential in addressing these challenges.

Co-Living and Shared Spaces: The rise of co-living arrangements and shared spaces reflects a shift towards communal living and cost-sharing. Landlords who explore these models can tap into new market segments and offer unique housing solutions that appeal to diverse tenant groups.

5. Legal and Regulatory Changes

Evolving Regulations: The regulatory landscape for landlords is continually evolving, with new laws and regulations impacting everything from tenant rights to fair housing practices. Staying informed about legal changes and ensuring compliance will be critical for landlords to avoid legal issues and maintain positive tenant relationships.

Data Privacy and Security: As technology becomes more integrated into property management, data privacy and security will be paramount. Landlords must implement robust measures to protect tenant data and ensure compliance with privacy regulations.

Rent Control and Housing Policies: Debates around rent control and housing affordability are likely to continue shaping the regulatory environment. Landlords should stay engaged with policy discussions and be prepared to adapt to potential changes in housing regulations.

6. The Role of Community and Connectivity

Building Communities: The future of landlording will increasingly focus on building vibrant and engaged communities. Landlords who foster a sense of community through events, social activities, and tenant engagement initiatives can create a more positive living environment and enhance tenant satisfaction.

Technology Integration: Connectivity and smart technology will play a crucial role in fostering community interactions. Online platforms and community apps can facilitate communication among tenants, share important information, and organize community-building activities.

Conclusion

The future of landlording is poised for significant transformation, driven by advancements in technology, changing tenant expectations, and evolving market dynamics. By embracing smart technology, adapting to new tenant needs, leveraging automation, and staying informed about regulatory changes, landlords can navigate these changes successfully and remain competitive in a rapidly evolving industry.

As the real estate landscape continues to shift, proactive and forward-thinking landlords will be best positioned to thrive and offer exceptional living experiences in the modern rental market. Embracing innovation and adaptability will be key to shaping a successful future in landlording.