Multi – Family Rental Inventory is on the decline
The research firm Reis reported that the South Florida multi-family market started the year off with an up swing. Both Ft. Lauderdale and Palm beach show a slight decrease in inventory avaialble and the rental rates have inched upwards. Vacancy rates dropped by 0.1% in Ft. Lauderdale and also dropped in Palm Beach by 0.4%. Miami’s vacancy rate was up 0.6% to a rate of 6.4%, in the Miami Metro Area .Accross the nation the vacancy rates remained flat while rental rates increased 0.3%. Out of 79 metro areas researched by Reis 50 saw rental rates increase. The largest rental rate increase was in Miami posting a 1.6% increase.
This is great news for landlords who had been seeing rental rates drop due to high inventory; however, tenants are still benefiting from excellent deals in the rental market.
Log on to miamirentseekers to find your next rental property.
Renting with Pets
Pets love their new homes
When searching for your pet friendly communities and buildings; tenants with pets need to be sure that they let their real estate agent know that they have a pet. Pets are often welcome in communities; however, everyone involved in the transaction, from the agent to the landlord to the tenant need to be aware of the pet policy in the community. As real estate professionals we have seen just about ever single pet restriction in the current market. Some of the more common pet restrictions are as follows:
1. Weight limit – this restriction will usually be for a specific weight limit, for example 20lbs, 30lbs or 40lbs maximum weight. If this is the case in your community of choice be sure to ask if this is combined weight among your pets or if it is per pet.
2. No aggressive breeds. Often a community will define a list of breeds which they consider to be aggressive; typically speaking about dogs in this instance. The breeds on this list will not be permitted. In some cases if the dog resembles too much of a non-desirable breed the community may request veterinarian documentation stating the exact breed.
3. Some communities will have a number of pet restriction; for example, one pet per unit or two pets per unit.
4. Some communities will allow pets for owners but not for tenants.
5. Many communities will require pets to use the service or freight elevator versus the regular passenger elevator. Yet, other communities will require residents with pets to carry their pets in common areas.
6. The majority of communities will have designated areas for walking pets and will provide “poop scoop” stations for resident use. In addition, most will have set fines for those that do not pick up after their pets.
Keep in mind that although these are many of the more popular rules and regulations the do not constitute all of them. we have also seen many combinations of these rules. Also, keep in mind that even if a community allows your pet the owner of the unit may opt not to accept pets in their unit or have their own set of rules. Furthermore, owners may require a pet deposit in addition to the regular security deposit or even go to the extent of having a pet fee which will not be refunded at the end of the lease term. Again, be sure to clarify these issues prior to signing your lease.
If you are looking for a pet friendly community be sure to consult your real estate professional before beginning your search.
Rental Property Deposits
So you are out looking for your new home; you are “apartment hunting”. You are working with a great real estate associate who is showing you exactly what it is that you are looking for and you have a couple of great choices to pick from and are ready to make that much anticipated offer. Yo
Earnest Money (Deposit)
u sit down to sign the offer which your agent has prepared for you and as they explain; you are hit with the harsh reality that you will need to come up with THREE MONTH”S rent to move in. WOW, that is a lot of money for a rental. So why is it that landlord’s require so much money; I mean after all you have great rental history, great credit, your income can easily afford the rent and you have no criminal record. Shouldn’t you be able to move in with just first month’s rent and the security deposit. The reality is that the answer to this question under these circumstances is probably “YES”; you should be able to move in with just first and security, you should be rewarded for having good rental history and good credit. In most instances both landlord and tenant would agree to this arrangement. However there are other scenarios more often than not that dictate differently. I would like to discuss the main issues which would prohibit a landlord from accepted the first month and security alone.
1. Many condo boards require a common area deposit equivalent to one month’s rent, or sometimes a predetermined amount. Therefore if the owner accepts the tenant with first month and security and the condo board gets the security then the owner has no deposit for damages on their property beyond regular wear and tear; the landlord would be exposing themselves to potential loses.
2. Many condo boards have what we refer to as rental restrictions. Sometimes these restrictions can cause issues with deposits. For example; a common restriction is that a unit owner may only rent the unit once per year. Sounds great to most owners especially those that occupy their units as primary residences; “Hey, we wont have that transient atmosphere of people constantly moving in and out”. But now look at it from the point of view of an owner who is renting out their unit. “If I rent this property out to this particular tenant and they stay for only 6 months or for that matter any period of time for less than the 12 month lease; in other words if the tenant breaks the lease I am stuck with an empty apartments with no income”. The landlord still has to pay the mortgage (if any), condo maintenance fees and taxes. Therefore, the owner who has such a restriction enforced by his association will be less likely to lower the move in requirements because they would prefer to guarantee the tenants lease performance for the entire term and this way if the tenant does break the lease the landlord can at least keep two month’s rental equivalent and still have the option to seek damages for the remainder of the lease term.
3. The landlord has simply had a bad experience before and is unwilling to take the risk again. Yes, this may seem unfair, as it seems like future tenants pay for the shortfalls of past tenants but it is the reality and a business decision that the landlord ultimately has to make.
In short, although there may be other reasons for the three months move in requirements these will typically represent the main reasons.
However, I will provide a warning for tenants; watch out for those landlords in foreclosure that are just looking to keep your deposits and collect rent until they get foreclosed. So how do you protect yourself. Well, first of all ask your agent to look up any Lis Pen dens against the property, try to find out if the owner is already in default. Also, if you are looking at a two bedroom with a direct ocean view in a full amenity building and the unit has granite counter, marble throughout and a jacuzzi in the master and the owner is asking only 1300 monthly, it may just be too good to be true. Scroll down to read blog on landlord / tenant laws on foreclosure.
My landlord is in foreclosure, what are my rights?
- FORECLOSURE AND WHAT IT MEANS TO A TENANT
As foreclosures have increased in recent years; tenants have found themselves to be major victims of lack of information and much frustration. We hear the same story all the time; “I have been paying my rent and now I come to find out that the landlord has been pocketing the money and not paying the mortgage and now they are in foreclosure”. Naturally, this brings up many issues and questions. First, is the landlord in breach by not paying the mortgage? Second, can the tenant break the lease? Third, what about the security deposit the tenant may have placed with the landlord or perhaps advanced rents paid to the landlord?
These are all valid concerns that a tenant may have and the reality is that the tenant is usually the least informed in such an instance. Well, it looks like finally there is some relief for tenants in this exact situation.
In the past landlord / tenant issues have been governed solely by The Florida Landlord Tenant Act ; however, recently a new law was passed to address specifically tenants in a foreclosure situation.
The Protecting Tenants at Foreclosure Act became effective on May 20, 2009. The new law has several aspects to it and although I am certainly not a lawyer by any means and am not interpreting the law I would like to point out some of the obvious aspects which may be of use to a tenant in this situation.
1. The law will require the purchaser of a foreclosed property at the actual foreclosure (this could be the bank or another party) to give a tenant a 90 day period in which to find a new property to live. This certainly alleviates a ton of pressure and the fear of getting “kicked out” of your home.
2. If the tenant has a written lease the bank that foreclosed must allow the tenant to live out the lease term and in essence become the landlord; unless the home is sold to a new buyer who actaully wishes to occupy the home as a primary residence. In which case the 90 day to vacate clause would kick in. Again, this is a nice peace of mind for the tenant.
Some practical advice for prospective tenants when looking for a property:
1. Check public records for any “Lis Pendens” or action against the property you are considering prior to signing a lease agreement.
2. Know exactly where your security deposit is being held.
3. Use a licensed real estate professional when locating your lease property.
Rental Property Inventory is low…..
At Miami Rent Seekers we specialize in residential real estate in the Aventura, Sunny Isles, North Miami, Hollywood, Hallandale, Bal Harbor, Miami Beach, Brickell and Downtown Miami markets. In recent months we have noticed a significant drop in the inventory levels for available rentals. I believe this may be attributed to several factors which we are noticing in the market.
1. The market is offering excellent rental rates for properties which in the past would have rented for much more.
2. There are many people unfortunately losing their homes to foreclosure, this sector is turning to the the rental market for there housing needs. Increasing the pool of potential tenants
3. Banks are placing REO or Foreclosure properties on the market for sale but not for rent.
4. We are currently in the “snow bird” season; therefore, many owners which have rental properties in buldings which allow short term or vacation rentals will simply take advantage of the increased rental rates for a vacation rental during the season.
In essence all these factors are adding up to a decrease in available inventory.
Our advise is that if you are currently in a rental property and you do not need to move yet, but your lease is expiring, that you simply negotiate a renewal with your current landlord. If you used a real estate agent to locate the unit in the first place, you can simply contact your agent and they will be happy to take care of the negotiations for you. When one of our associates attempts to negotiate a renewal with a landlord on behalf of the tenant they will typically suggest a rate reduction when appropriate due to market conditions; pointing out aspects of the deal like; your “great payment history”, the fact that there will be no down time for rental payments (no waiting for a new tenant), the idea that the landlord will not need to paint or clean the unit for a new tenant.
If you do not need another year, landlords are sometimes apt to renew for a shorter period of time. Again, the agent you originally used should be able to assist you with this process.
If you must move we recommend you contact an agent which is familiar with your desired area and you start your apartment hunt as early as possible. We recommend 45 to 60 days prior to your lease expiration. This will provide ample time and will avoid the pressure situation of having to settle because you are in a hurry. This will also allow proper time for the application process.
In short rental rates are still great; you will get much “bang for the buck”, but your choices may be less than in the past.
Miami Rent Seekers
The Rental Process in Miami
MiamiRentSeekers.com is the place to find your next home in South Florida
The Rental Process in Miami… As our previous blog indicated Miami has generated a tremendous rental market in recent years. With that said I decided to provide a quick little outline of how the rental deal should go:
A. Locate a real estate agent which specializes and is familiar with the rental process. Pick an agent.
MiamiRentSeekers.com is the place to find your next home in South Florida
B. Give the agent your search criteria. (this would include area desired, size of unit desired, do you have any pets, price range and any other information you would require in your unit – for example “washer and dryer in the unit is a must for me”)
C. Your agent will do the research and set up appointments to view units. (perspective tenants usually find a unit within 4 to 5 choices, but this number may vary depending on how specific the search criteria, the more specific the less units to view; for example someone with a large dog would not have as many choices as someone with no pets)
D. Once you have identified a unit you would like; a “contract to lease” also know as an “offer” should be filled out and a good faith deposit should be placed in an attorney’s or broker’s escrow account. This offer will depict all of the offering terms inclusive of rental rate, term of lease, move in date, any work to be done on unit prior to move in, maintenance resposibilities, deposits expected to be paid and all time frames, etc.
E. This offer will be presented to the landlord or the landlord’s representation. the landlord will either accept or counter or reject the offer. If a counter is made then the tenant has the right to either walk away from the offer and move on or accept the counter or even go to the extent to re-counter the offer. There is no limit on how many times the offer may go back and forth but usually it is an offer – counter and then acceptance.
F. Once ALL terms are agreed to the licensee will draft the actaul lease agreement and should review with the perspective tenant for signature and then present to landlord or landlord’s representation for landlord’s signature. At this point we have a lease in place to commence at a future date. All remaining deposits and move in funds should then be placed into the same escrow account as per lease agreement.
G. If you are moving into a condo or HOA property you will then proceed to the applicaiton process (keep in mind that the entire deal will be contingent on your getting approved by the association although you must excercise deligence in the application process as indicated by the original offer). Your real estate professional should be familiar with the process and be able to guide you easily. All associations are different. Here is a sample application.
H. Once you are approved it is time to wait for your move in date. Now it is up to the tenant to have utilities in order as well as movers. Also, do not forget that if you are moving into a building you will more than likely need to make an elevator reservation so that your movers dont have any issues bringing in your belongings.
I. At the end of your lease term you will more than likely be contacted by your real estate professional to see if you wish to renew your lease for an additional term or if you wish to vacate the property. Once again your real estate professional should be able to guide you with the process.
I hope that this helps anyone looking to rent a unit in MIAMI. Please view our Renter’s Guide for some helpful tips.
Isela Gonzalez
Miami Rent Seekers