I often get calls from people interested in learning specifically about owning a condo at the Purple Parrot Resort. I also get calls from local real estate agents who are unfamiliar with the complex yet have prospective clients asking them questions about the resort.
This post will help you understand the approximate costs of ownership at the Purple Parrot Resort as of July 2018
If you've read my How Does Condo Ownership Work blog series, you're familiar with the basics of condo ownership and the information provided here will all make sense. If you are new to condo ownership or are toying with the idea of purchasing a condo as a vacation home and rental property, I suggest you grab a Dr. Pepper and some peanuts (or a glass of wine and some fancy crackers) then read the easy-to-understand blog series I put together regarding the in's and out's of condo ownership. It will help the information below to be easily understood. If you're looking for rental information or general information about the amenities, this won't be addressed in the post, however, I've included a link at the bottom which will help!
I get the call about condo ownership at the Purple Parrot Resort so often, that I made a trifold brochure to address most of the frequently asked questions. Feel free to stop by and pick one up when you're in Perdido Key or email me at email@example.com and I'll send you one in the mail. I've included images of the brochure below and it hits all of the most often asked questions by first-time callers.
If you've read my previous posts, you'll know that I value the numbers. If the numbers don't make sense, the purchase doesn't. So, we'll start with the money coming out of your pocket(ownership expenses) then we'll talk about money coming into your pocket(rental income). The difference is what you pocket each year if the condo is paid off OR what goes towards your mortgage principal and interest if you're carrying a note on the property. I won't talk on appreciation in this post, but when you're ready to discuss values be sure to give me a call and we'll set up a time to chat.
When you buy the condo you'll have five ongoing expenses for the time that you own the property; HOA dues, electric, property taxes, insurance and phone. You have these whether it's a rental or not. These are broken down based on the condo sizes on the left-hand side in the image below.
When we sum this up, every year you'll likely spend:
Approximately $8k owning a one-bedroom
Approximately $13k owning a two-bedroom
Approximately $15k owning a three-bedroom
Many owners are able to achieve lesser annual expenses by shopping insurance providers, installing newer more efficient air conditioning systems or tackling other energy-saving measures. I'm trying here to give you a starting point and you can work to achieve savings when you find the right property. A word of advice, you should also budget for maintenance issues which arise however this will vary from condo to condo and owner to owner based upon the age of the equipment along with whether it's a rental or not.
Assuming you plan to allow the resort's rental program to manage the vacation rentals for you, the rental income ranges on the right-hand side of the image below(same image as above) are a good place to start. While every year there are condos which gross more than these ranges, it would be unwise to assume your condo will be the best performer in year-1. Those are gross rents and it's important to know that the rental office works hard to achieve those revenues for you. They handle every piece of the marketing, check-in, check-out, housekeeping, coordinating maintenance issues, coordinating improvements to the condo for you, taking after-hours calls, collecting taxes on the rentals, reporting and remitting the taxes on the rentals, generating monthly and annual statements, sending 1099's, etc. It's a program set up with an absentee owner(think vacation home) in mind, so they do absolutely everything you could need and for that, they keep 25% of the net rents. The condensed version of the paragraph above is: If the condo's gross rents are $20k, then you get $15k over the course of the year. Not bad.
The other part people ask about is where the condo they're calling about is located in the complex. The back of my trifold has a property map on it so we can easily point out the building.
There are three sections of the resort; the "a" section, the "b" section and the "c" section. These indicate which cluster of buildings in the resort the condo is located. The "a' section are those surrounding the outdoor pool. The "b" section are those on either side of the indoor pool. The "c" section, which has the most number of condos, are those around the perimeter of the complex.
Condos with 1 letter are either a two-bedroom condo or three-bedroom condo and they have the whole building to themselves. example: 2a, 2b, 3c, 15a, 14b, 36c, etc. Condos with 2 letters are either a one-bedroom condo or a one-bedroom with a loft condo. example: 13au, 10au, 4bd, 18cu, etc. The "d" indicates that it's a downstairs condo and a "u" indicates that it's an upstairs condo.
A lot of information, I know. Now, however, if you've read through my Condo 101 posts and then this post then you can begin to understand how owning a condo at the Purple Parrot Resort works. If you're wanting to vacation at the complex before taking the next steps towards condo ownership, visit this link: Purple Parrot Perdido Key.
If you're ready to get serious, this link remains current in showing all of the Purple Parrot Condos For Sale In Perdido Key.
See someting you like? Give me a call or email me! We can talk about buying at the Purple Parrot Resort in Perdido Key. I'm always glad to help.
Broker/Owner Perdido Key Resort Realty
GM Perdido Key Resort Management
JD is the Broker/Owner of Perdido Key Resort Realty which proudly serves all property owners in and around the Greater Perdido Key and SW Pensacola areas. If you have questions about buying, selling or general questions about the market then you should speak with JD at your soonest convenience. If that isn't enough... JD Hallam also currently is a Board Member as the Perdido Key Lodging Representative for the Escambia County Tourism and Destination Marketing Organization, VisitPensacola, and is the organization's FY18 Marketing Chairman after having been the Treasurer for FY17.