Comments on: Renters Market? http://bobmiami.wordpress.com/2007/07/02/renters-market/ Ongoing Coverage of Miami's Urban Transformation Mon, 05 Dec 2011 17:11:34 +0000 hourly 1 http://wordpress.com/ By: Xavier Zayas-Bazan http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6177 Fri, 06 Jul 2007 20:59:35 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6177 IWG,
More efficient maintenance is usually true of condos. Unless the owner lives in Jersey, or it’s the Association’s responsibility to fix.

Dave,
That’s a great point. Some may switch to office. Great blog concept you got going. I’ve added you to my blogroll. Look forward to seeing it evolve.

]]> By: Dave http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6176 Fri, 06 Jul 2007 17:59:58 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6176 I would say “follow the cranes”. Some of the yet unfinished buildings, originally intended to be sold, will have to become rental properties. These guys will be the most desperate right now and willing to rent at attractive rents. Or better yet, do a lease with option to buy on one of these properties as another person mentioned here.

]]> By: lwg http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6174 Fri, 06 Jul 2007 17:27:54 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6174 Not only are condo unit owners more willing to negotiate rents with versus apartment complexes, they’re also more interested in maintenance and making repairs to the place.

]]> By: Xavier Zayas-Bazan http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6148 Wed, 04 Jul 2007 17:03:45 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6148 Good points. when dealing with an apartment complex, negotiating lease terms is definitely more difficult than with an individual condo owner.
However, condo associations have an aversion to rentals, because the higher the lease rate in a community the lower the chances are to procure association loans. through a quality of life standpoint, renters are often associated with unruly and often destructive behavior in they eyes of owners. So, the association can place caps on rentals, force deposits, and aggressively impose rules and regs on owners with problematic tenants.
Most associations have tight restrictions on transient occupancy, but there are quite a few exceptions depending on the declaration of condominium and the policy a board of directors adopts. The company has to have an agreement with the association. Bentley on the Bay and Icon are two examples of associations that allow it. Miamihabitat.com and premiervacationrentals.com offer more info.
The residential market is hurting right now, but things will smooth over once buildings get topped off and occupancy settles the dust. A pick up ion the office market will help propel the recovery. Great feedback LBS!

]]> By: latinbombshell http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6147 Wed, 04 Jul 2007 16:35:42 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6147 It’s also important to keep in mind that rental corporations will raise rent every year at their discretion; worse yet you are tied down to a corporate contract. I’ve been renting for years in Miami and would much rather do so from an individual condo owner where it’s easier to negotiate.

I have a friend who used to live at Mirador (previously Morton Towers) on South Beach and it was crazy how they raised the rent on her studio every year; then again, it was like living in an oversized shopping mall. Convenient, but you pay the price.

Try mid-beach, but avoid waterfront. Rent fees here are very reasonable and you get more bang for your buck. Also, transient rentals are supposedly illegal unless the building is coded for such residential purposes … Xavier, do you have more info on that?

As far as the market goes, I’m just going to say that my father works for a major architectural firm in Miami (he’s an architect) and it is so dead right now, it’s really not funny. Buildings are not being completed. Firms are starting to speculate away from Miami. They are all sitting around twiddling their thumbs, even the autocad guys.

]]> By: Xavier Zayas-Bazan http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6132 Tue, 03 Jul 2007 18:44:00 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6132 Carlos, no prob, good questions.

Mikey, finding a tenant in those circumstances is a godsend. It just goes to show how favorable market conditions are for renters right now, and I don’t see things getting better for owners any time soon. There are way too many units in the construction pipeline.

]]> By: mikey http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6131 Tue, 03 Jul 2007 17:24:36 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6131 Some people can’t afford to sell, and are left with no choice but to rent. If you bought in late 2006 and need to/want to sell now, you may have to dip into your own pocket to sell. I.e. bought for 350,000 can only get get 340,000 for it now, and still owe 350,000 because they bought at 0 down interest only. To sell you would have to come up with 10,000 plus any fees for the realtor. That or they walk away and let it foreclose

]]> By: Carlos Miller http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6130 Tue, 03 Jul 2007 16:40:57 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6130 Thanks, Xavier

]]> By: Xavier Zayas-Bazan http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6129 Tue, 03 Jul 2007 16:28:54 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6129 Carlos,
It’s better, if one can, to lease the unit, wait for more flippers to get flushed out of the market, foreclosures to decline, and end-buyers to file in to the market, before selling under these unfavorable conditions. This may take a while and many investor-owners can’t afford to continue coming out of pocket while they wait for a market recovery.

Given the unprecedented level of new construction, infrastructure improvements, planned public space projects, and foreign investment, property values here will rise significantly over the next decade.

JPS,
Welcome back to Miami!

]]> By: jps http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6128 Tue, 03 Jul 2007 15:50:21 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6128 As someone looking into moving back to Miami soon, this was really helpful. Thanks!

]]> By: Carlos Miller http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6127 Tue, 03 Jul 2007 15:45:13 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6127 I know I said commercial, but what I meant was residential condos that owners rent out to tenants.

As it is right now with the property tax situation, it’s almost not even worth the hassle of owning such a property. If owners are going to have to lower rents in order to compete for tenants over the next two years, then I’m wondering if it would be wiser to just sell the unit right now.

Because realistically, how much more property value can condos accumulate over the next five or ten years if the market is glutted with condos?

]]> By: Xavier Zayas-Bazan http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6125 Tue, 03 Jul 2007 15:25:20 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6125 Its different for office condo owners, since there isn’t a glut in that market. The over supply exists in the residential sector. Vacancies are decreasing in the urban market for office space and $/psf is increasing plus there is a slight rise in new office construction. So, for all intensive purposes, office condo owners are in a much better position when it comes to weighing their options.

]]> By: Carlos Miller http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6124 Tue, 03 Jul 2007 14:41:41 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6124 Considering how the proposed tax solution making its way through the legislature is not offering much relief to commercial property owners, would it be advisable for someone who owns a commercial condo to sell the unit rather than lowering rental rates in order to compete for tenants?

]]> By: Peter Santiago http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6122 Mon, 02 Jul 2007 23:09:42 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6122 Keep in mind that most owners ask first, last, and security. However, you can offer First and last. Depending on the owners financial health, especially in this market, you will get a good deal.

I also think there are great deals in Aventura and Sunny Isles.

Peter.

http://www.SantiagoLabs.com

]]> By: Luis http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6121 Mon, 02 Jul 2007 21:31:53 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6121 It’s true. If there’s a time when renters have clout, it’s in today’s market. Some owners aren’t willing to come out of pocket but they will negotiate with the association if need be. You could even split the deposit between the owner and the tenant.

]]> By: mikey http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6120 Mon, 02 Jul 2007 20:13:25 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6120 As a renter you have a lot of bargining power at this point, if a condo association requires a deposit insist that the owner put it up. Check Craigslist and other free sites, realtors don’t charge you anything to use them, but they charge the owner, who if they are looking at a certain number to break even will include it in their price. (one good site is through UM, they have an offcampus housing listing which you can use even if you aren’t a student) If I was going to rent I would go onto the Miami-dade clerks site to make sure that the owner was not in foreclosure. As far as negotiating you might want to know how much their mortgage payment is. (wiith a little research you can find their mortgage and then do a little math) Plenty of stuff out there, no need to pay too much

]]> By: Xavier Zayas-Bazan http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6119 Mon, 02 Jul 2007 17:31:08 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6119 That would be ideal and it pertains to condos. A lot of owners would be receptive to such an agreement.

]]> By: Verticus http://bobmiami.wordpress.com/2007/07/02/renters-market/#comment-6118 Mon, 02 Jul 2007 17:17:18 +0000 http://bobmiami.com/2007/07/02/renters-market/#comment-6118 Good advice. How ’bout lease-to-own where monthly payments count towards the unit’s mortgage?

]]>