Monday Market Update: Wrapping Up 2025!

It’s time for the Monday Market Update, and this one feels a little extra special.

This is the last Monday market update of 2025!

Last week, 51 new listings came on the market, while 17 properties found new owners just in time for the holidays. That’s a healthy mix of fresh inventory and steady sales—especially for this time of year.

The week between Christmas and New Year’s is always lively in the Florida Keys. The roads are busy, restaurants are full, and visitors are soaking up the sunshine. Real estate activity often pauses just a bit as buyers and sellers enjoy time with family, friends, and flip-flops instead of paperwork.

That said, this slowdown is usually short-lived.

As we move deeper into season, more buyers are on island, more showings are happening, and we typically start to see closings pick up. Many buyers use the holidays to look around, then pull the trigger as the new year begins.

In short:

• New listings are still coming.

• Buyers are still buying.

• Momentum is quietly building for a strong start to 2026.

If you’re thinking about buying or selling in the coming months, now is a great time to start the conversation. A little planning now can make a big difference when season really hits its stride.

Here’s to closing out 2025 on a high note—and looking ahead to an exciting year in the Florida Keys real estate market. 🥂🌊

New Listings - Find your dream home here!

Sold Listings - Find out what is selling!

 

 

When a Seller Won’t Provide a Property Disclosure: What Buyers Can Do

Seller real property disclosures are a serious subject. In Florida, there is a form sellers can fill out, but it is not mandatory. A seller can choose not to use it. This sometimes surprises buyers. But it does not always signal a hidden problem.

Buying a home is exciting. It can also feel overwhelming when a seller chooses not to provide a written property disclosure. That’s normal. Many sellers are simply cautious about paperwork or unsure about what they must report.

Still, buyers should stay alert and take a few smart steps to protect themselves.

Let’s look at what you can do with confidence and peace of mind.

✅ Step 1: Ask Questions in Writing

Even if there is no disclosure form, you can still ask questions such as:

• Has the roof leaked while you owned the home?

• Have you had plumbing or electrical repairs?

• Has the home ever taken water or experienced flooding?

• Were permits pulled for renovations?

Ask by email or text. Written questions create a record.

🧰 Step 2: Get a Professional Home Inspection

An inspector works for you and can uncover issues that are not obvious.

Inspections review:

• Roof

• Structure

• Electrical system

• Plumbing system

• HVAC

• Windows and doors

If concerns arise, hire specialists to dig deeper.

📄 Step 3: Look Up Public Records and Permits

Local permitting websites show if past work was done properly. You may also learn whether repairs were permitted or inspected.

Insurance claim history can reveal storm or water events.

🌊 Step 4: Check Flood and Insurance Information

In the Florida Keys, flood risk matters. Ask for:

• Flood zone status

• Past flood history, if known

• Current insurance costs

• Elevation certificates

These records help fill in the picture.

📝 Step 5: Use an Inspection Contingency

This protects you. If the inspection finds serious issues, you can cancel or renegotiate terms.

A contingency acts as a safety net when disclosure is limited.

🤝 Step 6: Lean on Your Realtor

A buyer’s agent can:

• Help draft clear questions

• Review inspection findings

• Recommend protective contract wording

• Keep emotions in check

Remember, a lack of written disclosure does not automatically mean the seller is hiding something.

💬 Final Thought

Stay curious. Ask questions. Do inspections. Review records.

With careful due diligence and guidance, you can make a confident decision and enjoy the excitement of buying your Keys home.

  

Escrow or No Escrow? How Florida Keys Homeowners Handle Taxes & Insurance

Living in the Florida Keys comes with sunshine, salt air… and a few grown-up decisions.

One of the biggest is how to pay your property taxes and insurance.

When buying a home, most buyers face a choice:
Do you roll taxes and insurance into your mortgage, or handle them separately?

There’s no right or wrong answer. There’s just the option that fits you best.

What Is an Escrow Account?

An escrow account means your taxes and insurance are bundled into your monthly mortgage payment. Your lender collects the money and pays the bills when they’re due.

Why Buyers Like Escrow

• One predictable monthly payment

• No large, surprise bills

• Less to manage

• Often required for FHA, VA, or low-down-payment loans

For many buyers—especially early on—escrow keeps things simple.

The Drawbacks of Escrow in the Keys

Escrow isn’t perfect, especially here.

• Monthly payments can increase when insurance goes up

• You have less control over how your money is handled

• Your payment may change even if your loan didn’t

That surprises a lot of homeowners.

Paying Taxes & Insurance Separately

Without escrow, your mortgage payment includes principal and interest only. You pay taxes and insurance directly, usually once or twice a year.

The Upside

• Lower monthly mortgage payment

• More control over insurance choices

• You keep your money longer

The Trade-Off

• Annual bills can feel large

• You must stay organized

• Missed payments fall on you

My Personal Experience

Years ago, I chose to separate my taxes and insurance from my mortgage.

And yes—
those annual bills can still surprise me sometimes, even when I know they’re coming.

That said, we plan for it.
We set funds aside and stay ahead of the deadlines.

For me, the flexibility and control are worth it. But it’s not the best fit for everyone.

Can You Choose This at Purchase?

Sometimes.

You’re more likely to have the option if:

• You put 20% or more down

• You’re using a conventional loan

• You have strong credit

Escrow is usually required with FHA and VA loans.

💡 Even if escrow is required at closing, many lenders allow you to remove it later.

A Florida Keys Reality 🌴

Insurance costs here change often.
When they do, escrow payments adjust—and that can catch homeowners off guard.

Understanding why payments change makes a big difference.

Which Option Is Best?

• Escrow works well for simplicity and peace of mind

• No escrow works well for organized homeowners who want control

Neither choice is wrong.
It’s about what fits your lifestyle.

A little planning goes a long way—especially in paradise.

 

Living in Paradise Takes a Little Prep: 5 Smart Ways to Fortify a Florida Keys Home

Living in the Florida Keys is a dream.

Warm breezes. Blue water. Island time.

But paradise comes with a few quirks.

Sun, salt air, summer storms, and the occasional hurricane are all part of life here. The good news? You don’t need to live in fear—or build a fortress—to live comfortably in the Keys.

A few smart upgrades can make island living easier, safer, and far less stressful.

Here are five practical ways homeowners fortify their Keys homes while still enjoying the laid-back lifestyle we all love.

1. Impact Windows and Doors: Set It and Forget It

Impact-rated windows and doors are one of the most popular upgrades in the Keys.

They protect your home from flying debris during storms.
They also help with noise, heat, and security year-round.

Best of all?
No plywood. No last-minute scrambling.

Many buyers now expect impact glass, so it’s both a lifestyle upgrade and a resale bonus.

2. Metal Roofs Built for Island Living

Metal roofs are everywhere in the Keys—and for good reason.

They hold up well in high winds.
They last longer in salty air.
They reflect heat, which helps keep homes cooler.

The key is proper installation.
A well-installed metal roof can be one of the strongest features of a Keys home.

3. Strong Roof-to-Wall Connections

This is one upgrade you won’t see—but it matters.

Hurricane straps and reinforced connections help keep the roof attached to the house during strong winds.

Think of it as giving your home a better grip.

When the roof stays put, the rest of the home usually does too.

4. Elevated Utilities and Secured Outdoor Items

Flooding and surge can happen, especially in low-lying areas.

Elevating things like:

• HVAC systems

• Water heaters

• Electrical panels

can help prevent costly damage.

It’s also smart to secure outdoor furniture, grills, and planters.
Simple steps can save big headaches later.

5. A Generator for Comfort, Not Panic

Power outages are part of island life.

A standby generator—or even a smaller system—can keep essentials running.
Think:

• Refrigerators

• Fans or AC

• Lights

• Internet

It’s not about luxury.
It’s about comfort and peace of mind.

Buyers often see generators as a major plus.

The Takeaway: Smart Prep, Not Scary Prep

Living in the Florida Keys isn’t hard.
It just takes a little planning.

Most long-time residents don’t stress about storms.
They prepare once—and enjoy paradise the rest of the year.

These upgrades aren’t about fear.
They’re about protecting your home, your comfort, and your investment.

Because living in paradise should feel relaxed—even when the weather isn’t perfect.

 

Monday Morning Market Update

The tides were a little calmer in the Florida Keys real estate market this past week.

Both new listings and sales dipped slightly, and that’s not unexpected this time of year. With the holidays approaching, many buyers and sellers are traveling, hosting family, or simply shifting focus to year-end plans. This seasonal pause happens almost every year.

We’re also continuing to see some softening in prices, which has many buyers taking a “wait and see” approach. Some are watching closely to see if pricing continues to stabilize, while others are keeping an eye on interest rates and hoping for future adjustments.

That said, this feels very much like a temporary holiday breather, not a market slowdown. Historically, the start of the new year brings fresh energy—more listings hitting the market and renewed buyer activity, especially here in the Keys as winter season ramps up.

If you’re a seller, this can be a great time to prepare and position your property ahead of the new year. If you’re a buyer, staying informed now can put you in a strong position when activity picks up again.

As always, I’m keeping a close watch on the trends and will continue to share what I’m seeing week by week. 🌊

Click here to view the new listings

Click here to see what has sold

 

 

First Class Fridays: Spotlight on Beacon Reef, Islamorada

Beacon Reef has long been one of my favorite condos in the Upper Keys. Every time I walk through this community, I’m reminded why people fall in love with it. The floorplans feel open and welcoming — not boxy like so many condos can be. Most units offer beautiful water views, and every owner enjoys extra storage. Some even have the luxury of covered parking, a real treat in the Florida Keys sun.

This gated, resort-style community has the kind of amenities that make everyday life feel like a getaway. Residents can unwind in the beach-entry heated pool or relax in the therapeutic hot tub. The ocean-view fitness center adds a little inspiration to every workout, and the deep-water private marina offers boat slips for vessels up to 35 feet on a first-come basis.

There’s also a sandy beach for sun lovers, a fishing pier for quiet mornings, and a BBQ area under the tiki hut for gatherings with friends. Lush tropical landscaping ties it all together, giving Beacon Reef a peaceful, island-resort feel.

The location is another highlight. You're only minutes from Islamorada’s famous fishing and diving spots, as well as some of the best restaurants, galleries, and marine attractions in the Keys. It’s the perfect mix of seclusion and convenience.

Beacon Reef isn’t just a place to live — it’s a lifestyle. And it’s one I’m always excited to share during First Class Fridays.

Click here to see what's available at Beacon Reef

 

The Sanctuary in Key Largo: A Hidden Treasure Tucked Into the Trees

There’s a little place in the Upper Keys that I’ve loved for years. You won’t spot it from US1. In fact, if you didn’t know it was there, you’d drive right past without a hint of what lies beyond the gate. That place is The Sanctuary in Key Largo—one of the quietest, most peaceful communities in the area, and one that truly lives up to its name.

What I adore most about The Sanctuary is how hidden it feels. The moment you enter, the noise of the highway slips away and you’re surrounded by a sprawling 24-acre hardwood hammock. The buildings aren’t perched on top of the landscape; they’re tucked gently into it. You walk to the units along manicured wooden paths that curve through the trees. Sunlight filters through the canopy. Birds chatter overhead. Every step feels like a stroll through a private nature preserve.

And that’s really what The Sanctuary is—a tropical retreat wrapped in one of the most beautiful, untouched hammocks in the Upper Keys.

Why The Sanctuary Feels So Special

Beyond the peaceful setting, the community offers comfort and convenience at every turn. It’s one of those rare places where you can enjoy nature and still have every modern perk close at hand.

Here are just a few of the things that make The Sanctuary stand out:

• In/out boat service for carefree days on the water

• Gated parking for boats and trailers

• On-site boat ramp, boat basin, and fish cleaning station

• Pier dock with an observation deck and a tiki hut—perfect for sunsets

• Historic clubhouse full of local charm

• Fully equipped gym for morning or evening workouts

• Tennis courts and a basketball court

• Pool for cooling off on those warm island afternoons

• Dock privileges for boating enthusiasts

And the best part? All of this exists within a quiet, gated enclave that feels miles away from everything—yet it’s right in the middle of Key Largo.

Close to Everything, Yet a World Apart

Living in The Sanctuary means you’re only minutes from first-class dining, shopping, and every kind of aquatic adventure you can imagine. Paddle through mangroves, dive a reef, or enjoy a sunset sail—it’s all right here. And when you need to travel, Miami International Airport is only an hour away, though it feels like another world once you return home through the gates.

Why It’s One of My Favorites

I’ve walked those hammock trails more times than I can count, and every time they make me smile. There’s something special about how the community blends with nature instead of pushing it aside. The quiet. The greenery. The sense of being tucked away in your own peaceful world. It’s the kind of place that stays with you long after you leave.

If you’re looking for a home—or even just a slice of the Keys—that feels private, serene, and close to everything, The Sanctuary is a place worth exploring. It’s one of my favorite hidden gems in the Upper Keys, and one I’m always excited to share.

Click here to view available units at The Sanctuary

 

Should You Self-Insure Your Florida Keys Home? Pros, Cons & What Buyers Need to Know

Insurance is one of the highest costs of owning a home in the Florida Keys. Because of that, more buyers—especially cash buyers—are asking a big question:

“If I don’t have a mortgage, can I skip homeowners insurance and save money?”

The short answer: Yes, you can self-insure. But it’s not always as simple or as safe as it sounds.
Let’s break it down in plain language so you can decide what’s right for you.

What Is Self-Insuring, Anyway?

Self-insuring means you take on the financial risk yourself instead of paying an insurance company to do it.
In other words, you become your own insurer.

You save the money you would have spent on premiums and keep it in a reserve fund. If something happens, you pay out of pocket.

Simple idea. Big responsibility.

The Possible Pros of Self-Insuring

1. More Buying Power

Skipping a large annual premium may free up money you can put toward a higher purchase price or a better home.
In a competitive market like the Keys, that feels tempting.

2. No Insurance Company Rules

No inspections. No four-point reports. No renewal surprises.
You don’t have to worry about your policy being dropped or your rates jumping.

3. You Keep the Savings—If Nothing Goes Wrong

If you go years without a major loss, the money you’ve saved can grow.
Some buyers like building their own “rainy-day fund” instead of paying an insurer.

But Here Are the Cons Buyers Often Overlook

1. One Event Can Wipe Out Years of Savings

This is the big one.
In the Florida Keys, storms and flooding are not rare. A single hurricane, fire, or plumbing leak can cause tens or hundreds of thousands of dollars in damage.

If you self-insure, that bill is yours—on the spot.

2. You Still Pay for Repairs AND Temporary Living Costs

If your home becomes unlivable, homeowners insurance usually covers hotels or short-term rentals.
Self-insuring means you pay for repairs and a place to stay while repairs drag on.

3. Resale Could Get Complicated

Future buyers may want an insurance history on the home.
If you repaired storm damage out of pocket, there may be no claim record, and some buyers (and inspectors) may be wary.

4. You Need a Big Cash Cushion—and Discipline

True self-insurance requires a large, dedicated reserve fund, often six figures.
If the money isn’t set aside or gets used for other needs, you’re exposed.

5. HOAs, Condo Associations, or Local Rules May Still Require Coverage

Even without a mortgage, you may be required to carry certain policies—especially flood or windstorm insurance—depending on where you buy.

6. Peace of Mind Has Value

Insurance is expensive, but so is stress.
Self-insuring shifts all the risk to you. For many buyers, that burden feels heavier after the first storm season.

A Middle-Ground Option: Partial Self-Insurance

Some buyers choose to carry:

• Windstorm insurance only

• Flood insurance only

• A high-deductible policy to reduce premiums

This way, you’re not fully exposed but you still save money.

So, Is Self-Insuring a Smart Way to Increase Buying Power?

It depends on your financial comfort level, the location of the home, and your risk tolerance.
Self-insuring can stretch your dollars today, but it can also expose you to huge expenses tomorrow.

If you have the reserves and the stomach for risk, it may be worth exploring.
If not, traditional insurance—or a hybrid approach—may give you better long-term protection.

The most important takeaway:

👉 Self-insuring is not a discount. It’s a gamble. Know the odds before you play.

Monday Market Update - Here comes Season!

The tides weren’t the only thing shifting — the market made a real move this week.

Activity picked up, and new listings rolled in fast as we head into our busy season.

📈 New Listings Making Waves

We saw 85 new homes hit the market this week — a big jump that gives buyers more to choose from. Prices ranged from $175,000 for a timeshare portion in a single-family home to an impressive $19,750,000 estate.

👉 Browse all the new listings here:

🏡 Sold This Week

A total of 33 homes sold, showing that buyers are still out there and ready to make moves. Sales ranged from $315,000 to $9.3M for a home in exclusive Ocean Reef.

👉 See the sold homes here:

🌞 The Takeaway

More listings, steady sales, and rising interest as we enter season — it’s shaping up to be a great time for both buyers and sellers. If you’ve been waiting for the market to wake up, this may be your moment.

 

First Class Fridays: The Ultimate “Holiday Shopping List” for the Person Who Has Everything

Happy Friday and welcome to First Class Fridays!

Since it’s the season of giving, I thought we’d take a fun look at the Top Ten Highest-Priced Listings currently on the market — the real estate equivalent of flipping through a luxury holiday catalog.

If you’ve ever wondered what to buy for the person who already owns everything (and I mean everything), consider this your guide. Because when someone already has a private chef, a custom golf cart, and a dog that eats better than most humans… well, maybe a multi-million-dollar waterfront estate is the only gift left that will surprise them.

These top-tier properties deliver the kind of features that make holiday shopping feel downright joyful: sweeping ocean views, private docks, resort-style pools, and enough space for every relative — even the ones who only show up for the free food.

🌟 Spotlight Gift: Coccoloba — The Showstopper

Among this week’s Top Ten, one listing deserves its own shiny bow: Coccoloba, a true once-in-a-lifetime estate that feels more like your own private resort than a home.

Nestled on over five acres of pristine oceanfront, Coccoloba brings together award-winning architecture, botanical artistry, and rare privacy. Designed by Siskind Architects with gardens crafted by Raymond Jungles — winner of Florida’s ASLA Garden of the Year — this estate blends luxury with nature in a way few properties anywhere can match.

You’ll find:

• Nearly 11,000 sq ft of bespoke air-conditioned interiors

• Verandas and outdoor living bringing the total to almost 18,000 sq ft

• Oasis pool, grotto, swim-jet therapy, and beach entry

• Protected boat basin, two lifts, 450-ft dock, and private beach

• Helipad-ready peninsula lounge and tiki bar

• Collector’s A/C garage

• Elevated summer kitchen with pizza oven and push-button TV

It’s a masterpiece made for collectors, entertainers, and anyone shopping for a gift that says, “I really, really like you.”

But let’s get back to the rest of the list — because even the “runner-up gifts” this week are spectacular in their own right.

🏝 The Holiday Top Ten: Luxury Listings Worth Unwrapping

While Coccoloba steals the spotlight, the remaining top ten listings bring their own jaw-dropping amenities. Think private islands, modern architectural gems, deep-water docks, sky-high ceilings, chef’s kitchens, and living spaces designed for complete relaxation.

Each home on this list offers:
✔ Elevated coastal living
✔ Premier Florida Keys locations
✔ Resort-level outdoor areas
✔ Distinctive features that make them unforgettable

Whether you're dreaming, browsing, or truly shopping for someone special this season, these listings deliver inspiration and wonder.

🎄 A Holiday Wish Book for Grown-Ups

So pour yourself some cocoa (or something a little stronger), settle in, and explore the finest homes the market has to offer right now. The holidays are all about joy — and nothing sparks joy like a little luxury home browsing.

And hey… if you did decide to gift someone a multi-million-dollar home, I promise not to tell them it was my idea.

Click here to start dreaming of the perfect gift

 

 

Hemingway’s Six-Toed Cats: The Quirky Heart of a Key West Sanctuary

In the middle of Key West’s lively bars and music, there’s a place that feels calm, cool, and almost timeless. It’s the Ernest Hemingway Home & Museum, a quiet island of shade and stories. Many visitors come for Hemingway’s writing history. Most stay, though, for the cats — especially the ones with six toes.

A Peaceful Place with a Wild Past

Hemingway moved into the Spanish Colonial house in the 1930s. It sits on one of the highest points in Key West, which surprises a lot of people. The home is bright, airy, and full of the author’s old treasures. Even with tourists walking through, the place feels relaxed. The gardens, the palms, and the cats all seem to know this house was made for slow afternoons.

The Famous Six-Toed Cats

Most people hear about the cats before they ever visit. Today, around 60 felines live on the property. Many of them have an extra toe, thanks to Snowball, a white polydactyl cat a sea captain gave to Hemingway. The trait stayed in the family line, so you’ll see big paws everywhere — napping on porches, posing on benches, and ruling the yard like they own it.

The staff cares for each cat like a tiny VIP. Every cat has a name, from Audrey Hepburn to Harry Truman. And yes, every single one is allowed to wander the grounds exactly as it pleases.

The Legendary Pool

Behind the house sits the famous swimming pool, and it comes with a story only Key West could pull off. Built in 1938, it cost $20,000 — an eye-popping amount at the time. Hemingway once joked that it cost him his last cent, and he pressed a penny into the still-wet cement. You can still see it there today.

The pool glows bright blue in the Florida sun, and it adds to the calm feel of the property. Even with crowds, it feels like a quiet escape from the busier parts of Old Town.

Why the House Still Matters

The Hemingway Home isn’t only a museum. It’s a look into island life in the 1930s. It’s a place where history is alive, where cats have personalities, and where visitors slow down for a moment before heading back into the bustle of Duval Street.

If you love Key West’s mix of charm, humor, and odd little surprises, this spot brings all of it together.

Fun Fact: The cats wander the grounds with complete freedom, but the museum keeps exact records of every pawed resident — family trees and all!

 

Seven Palms Cove: Luxury Living Returns to Summerland Key (And So Do a Few Memories!)

Every once in a while, a new development pops up in the Florida Keys that makes you stop, stare, and say, “Well… that’s going to be something special.”

Seven Palms Cove on Summerland Key is exactly that.

Maybe I’m a little sentimental, but this one hits close to home—literally. Years ago, I lived on Summerland Key, and my family used to keep a little Hobie Cat at this exact spot. We’d launch it right where this new high-end community is now taking shape. Back then, the land was humble and quiet, with just the sound of the breeze and the excitement of getting out on the water. Today, it’s transforming into something extraordinary—an enclave that blends the same peaceful island spirit with modern luxury.

A Private Slice of Island Luxury

Seven Palms Cove is redefining upscale coastal living in the Lower Keys. With only seven oceanfront residences, this gated community offers true exclusivity—homes start at $4 million and come loaded with features that make every day feel like a world-class vacation.

Each home includes:

• 4,000+ sq. ft. of living space

• 5 bedrooms and 5.5 bathrooms

• Soaring 10' ceilings

• Impact glass and bright open-concept interiors

• A chef’s kitchen with premium appliances, quartz countertops, pantry, and a large island worthy of hosting big family dinners or casual sunset cocktails

Step outside and the Keys lifestyle unfolds effortlessly. Each home features multiple verandas and balconies, plus a rooftop observation deck perfect for catching sunrise coffee and sunset champagne. You also get your own sparkling infinity pool and spacious deck with seamless access to the water—this is indoor-outdoor living at its finest.

Built for Boaters and Adventure-Lovers

This is Summerland Key, after all—which means water access matters.

Each residence comes with its own assigned dock space in a private boat basin featuring new composite docks, freshwater and electric hook-ups, and even a fillet station (for those who know the joy of cleaning tonight’s dinner with the ocean breeze on your back).

Add in Tesla Solar, an elevator, and generous storage, and Seven Palms Cove nails the sweet spot between luxury and practicality.

And if you love staying active, the community amenities include a sport court for tennis, pickleball, and basketball, plus oceanfront lounge spaces, hammocks, and easy access for paddleboarding and kayaking.

Unmatched Accessibility (Yes, Even in the Keys!)

Seven Palms Cove is just one block from Summerland Key’s private airport, making it one of the most accessible luxury communities in the island chain. For snowbirds, jetsetters, or friends who “just want to pop down for the weekend,” it doesn’t get more convenient.

A Strong Investment Opportunity

There are no rental restrictions, which is rare for a community of this caliber. Nearby luxury homes in this area are generating over $300,000 annually, making Seven Palms Cove a standout opportunity for investors or those looking for a high-end vacation home that can help pay for itself.

Why Seven Palms Cove Matters

For me, seeing this property developed feels like watching a favorite childhood shoreline grow up—same stunning ocean, same salty breezes, but now dressed in a new level of elegance. It’s exciting to see Summerland Key shine with a community that blends exclusivity, comfort, and modern design while still honoring the laid-back Keys spirit.

Whether you’re dreaming of a forever home, a luxury retreat near Key West, or an investment with serious potential, Seven Palms Cove is a rare gem—and one worth keeping on your radar.

If you’d like pricing, floor plans, or a private look at this unique development, I’m always here to help. After all… I’ve known this shoreline for a long time.

Listing information provided by Stephanie Muzzillo of Serhant Florida LLC

 

The Truth About Downstairs Living in the Florida Keys (And Why It’s Not Always What You Think!)

 

If you’ve spent any time house-hunting in the Florida Keys, you’ve probably noticed something right away: we love our downstairs spaces.

Porches, storage rooms, workshops, little bonus areas — you name it, we’ve built it. And because our islands are full of homes on stilts, the downstairs level often looks like the perfect spot for a guest suite, an office, or maybe even a rental.

But here’s the twist.
Not every downstairs space is legal living space, and even the legal ones can’t always be rented out on their own.

The good news? Once you understand how it works, it’s actually pretty simple. And knowing the rules helps you make smarter choices as a buyer or a seller — without killing any of the Keys fun. 😎

Let’s break it down in a friendly, easy way.

🌴 So What Is Legal Downstairs Living?

To call a downstairs area “legal living space,” it must meet a few conditions:

• It has to be built above the required flood elevation

• It needs proper building permits

• It must meet current code requirements (think: windows, electric, plumbing, HVAC)

• And it must be listed as living space on the Property Appraiser’s record

If a downstairs room checks all of those boxes, great! That’s a true, legal living area.

But here’s the catch: not all finished spaces you see down there meet these standards.
Some were built before modern flood rules (Pre-FIRM homes). Some were finished without permits. And some are meant to be storage or hobby areas — even when they look like adorable mini apartments.

🛠️ Three Types of Downstairs Spaces You’ll See in the Keys

Most homes you tour will fall into one of these categories:

1. Fully Permitted, Legal Living Space

These are rare gems. They’re allowed, they’re safe, and they add real value.
But they’re still part of one single-family home unless zoning says otherwise.

2. Legal, Permitted Storage or Accessory Space

Think workshops, craft rooms, fishing gear storage, or a place to keep your bike and paddleboard.
Some owners finish them nicely, add AC, or make them extra comfortable — and that’s fine! These are great bonus spaces.
But they’re not legal living areas.

3. Charming but Not Legal Living Areas (Pre-FIRM or Unpermitted)

These can look ready to move into, but they don’t meet today’s flood-safety rules.
People often use them casually, but they can’t be counted as square footage or advertised as living space.

The key is that downstairs rooms in our islands are not all created equal, and understanding which type you’re looking at helps avoid surprises later.

💸 And Now for the Big Myth… Renting the Downstairs!

This is where many homeowners and buyers get tripped up.

We’ve all heard the story:

“My neighbor rents their downstairs for $2,000 a month!”
“My friend’s cousin lives downstairs and pays half the mortgage!”

These stories travel fast — but they don’t tell the whole truth.

✔ Legal living space does not automatically mean you can rent it separately.

✔ A home can have two great levels, but that doesn’t make it a duplex.

✔ Most homes in the Keys are zoned single-family, even with legal space downstairs.

To rent a downstairs unit separately from the upstairs, you need:

1. A legal, permitted living area

2. AND the correct zoning for multi-family use

Without both of those, the property is still one home, and the downstairs cannot become a stand-alone rental unit.

This isn’t meant to spoil the fun — it’s meant to save future headaches. Many buyers assume the downstairs will pay the mortgage, only to learn later that the zoning doesn’t allow separate rentals. Knowing ahead of time keeps expectations realistic and leads to smoother transactions for everyone.

🏝️ So Why All the Rules?

Believe it or not, the rules are not designed to annoy homeowners. They exist because:

• Downstairs areas can flood

• Evacuation standards matter in a hurricane zone

• Insurance depends on accurate building use

• The county tries to prevent unregulated, unsafe rentals

Plus, maintaining the character and safety of our island neighborhoods helps protect property values, which benefits everyone.

🔍 Tips for Buyers: How to Check What’s What

Here’s what smart buyers do before falling in love with a downstairs space:

• Look at the Property Appraiser’s website

• Review the building permits

• Check the elevation certificate

• Confirm the zoning type

• Ask your agent (that’s you!) to explain what’s legal vs. not

A quick check early in the process can tell you everything you need to know.

🐬 Tips for Sellers: Market It the Right Way

If you’re selling, you don’t have to hide your downstairs area — you just want to describe it accurately.

• You can highlight storage rooms, workshops, hobby areas, and bonus space

• You cannot advertise unpermitted areas as legal living space

• And you shouldn’t promise buyers it can be rented unless zoning allows it

The good news is that well-done downstairs areas — even non-living ones — still attract buyers. People love flexible space for guests, gear, work, or just extra breathing room. Honest marketing helps avoid issues later.

🌞 Final Thoughts: Keys Living Done the Smart Way

Downstairs spaces are part of what makes Florida Keys homes so versatile and fun. They give us extra room for hobbies, storage, guests, and gear — all the things that go with our island lifestyle.

You don’t have to fear the rules. You just need to understand them.

When you know what’s legal, what’s not, and what zoning allows, you can buy with confidence and sell with clarity. And that’s the secret to stress-free homeownership in the Keys.

If you ever have a question about a downstairs space — whether you’re shopping, selling, or just curious — I’m always here to help you sort it out with a smile.