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Published Saturday, July 10, 2004
Annual Rent Surveys Help Owners, Renters

Len Bonifield

We are fast approaching the time of the year when community owners will be sending out notices of rent increases for the next 12-month period.

Each year JLT & Associates, a real estate market research company, surveys the 19 largest counties in Florida, compiling information on communities with 150 sites or more. The reports are developed by trained independent personnel living in Florida.

The most recent surveys include 435 55-plus communities with 134,772 homesites and 171 all-ages communities with 53,634 homesites. Each community is called to collect the data. The owner of the firm, John Turzer, personally calls all major community owners. The surveys are normally done in April of each year and results published in May.

How valid are the reports, you might ask? The FMHA (Federation of Manufactured Housing Association Inc.) suggests that community owners assist in validating their rent increases. Should a HOA ever find it necessary to litigate on market rents, the courts usually require an expert witness and it is likely that the JLT reports might qualify.

Reports are prepared by county and sold by county. A sample report I received previously had 24 pages of detailed information. The reports list some owners and communities are listed alphabetically by type. Reports are sorted by type, number of home sites, occupancy rate, adjusted home site rents and specific information including marketing programs and rent increases. It lists amenities as reported by the community, without any information as to condition or quality of the amenity. The reports show the previous year's rents, the new rents and the percentage of increase. Researchers ask for market rents and show breakdowns that are provided to them, such as standard or interior lots, corners, lake, premium, etc.

I recently received from JLT Associates summaries of some of the information in the latest reports. These summaries will provide HOAs with a quick peek at what the reports will include.

  • Polk County: Includes 58 55plus communities with 17,786 homesites. It also includes 10 allages communities with 2,460 homesites. The average rent (after deducting services) in the 55plus communities is $269, an increase of $11 (4.3 percent) over May 2003. The average adjusted rent (after deducting services) in all-age communities is $220, an increase of $10 (4.8 percent) over May 2003.

  • Hillsborough County: Includes 19 55-plus communities with 6,498 homesites and 18 all-ages communities with 5,677 homesites. The average adjusted rent (after deducting services) in the 55-plus communities is $278, an increase of $11 (4.1 percent) over May 2003. The average adjusted rent in the all ages communities (after deducting services) is $270, an increase of $9 (3.5 percent) over May 2003.

  • Pinellas County: Includes 64 55-plus communities with 18,731 homesites and 12 all-ages communities with 2,624 homesites. The average rent in the 55-plus communities (after deducting services) is $306, an increase of $11 (3.7 percent over May 2003. The average rent in the all ages communities (after deducting services) is $321, an increase of $13 (4.2 percent) over May 2003.

    Keep in mind that these are averages and not necessarily representative of what is occurring in your community. The reports also include information as to what communities might be closing and what will be built on their sites, along with proposed expansion as reported by the community. For example, in Polk County, Cypress Lakes reported that they plan to open 119 new homesites in 2004.

    The information in a county report could certainly prove valuable for a homeowner association in discussions with residents, and with groups of community representatives like those in Polk County (LIC & MEG). The material is copyrighted, however, Turzer assumes most HOAs make copies for their board members and he knows he cannot control this. He hopes they do not make copies for all their residents.

    I suggest any HOA or group interested in obtaining a copy of their county's report contact John Turzer to get more information on what is included in the report and what the report will cost. Reports may be ordered direct from JLT & Associates through its website www.JLT-Associates.com. Contact may also be made via e-mail at JohnTurzer@gmail.com. The firm is located in Hawaii and the phone number is 808-283-3380, fax 808-669-5517.

    Send questions or comments to Len Bonifield, 2914 Dollar Bonnet Lane, Lakeland, FL. 33810-2910. Or e-mail to elb@gate.net or fax to 863-853-8023.