This question came in from a reader:
Hi Boom or Bust,
Could you please discuss what the current market means
for those who are looking to rent or lease? Does this
mean it is better, worse, or the same than those
looking to buy.
I think this would be an interesting post since many
of your followers probably have similar questions.
If not, could you reply to my email and let me know
what you think? And if you were looking for the best
deal in Miami for renting, where would you look?
Thanks so much for your help!
Could you please discuss what the current market means for those who are looking to rent or lease?
The current influx of condo units is creating a glut in the rental market as well, particularly since there is such a high investor-owner rate. Apartment complexes are having to compete with the condo rental rates, because many investor owners are putting their units out to rent while they buy themselves time waiting for more favorable market conditions. This is good for renters in that it places lessors in a competitive bind. Some owners are so desperate to lease out their units that they are resorting to transient occupancy for tourists.
And if you were looking for the best deal in Miami for renting, where would you look?
It depends on where you want to live. The Brickell Yacht Club has rental ranging from the $1,500 to the $4,600 range depending on square footage.
One Broadway, also on Brickell, has a spread from $1,300 to $3,200
As you would expect, Brickell is rather pricey compared to Edgewater, where BayParc has rentals ranging from $1,000 to $2,200
I would check out the Gables/Coral Way Corridor and Simpson Park area for some more inexpensive yet desirably located apartments.
Renting in Condos Versus Renting in Apartment Buildings
Apartment complexes will have more reasonable deposit requirements than condos. If you’re renting in a condo, then the association is likely to request a deposit from you–this is in addition to the typical first and last month deposit required by the lessor.
So, you would have to be paying two deposits.
Tying up your money in such a way for a condo rental is only advisable if you are considering eventually acquiring a unit in a certain neighborhood or development and would like to sample the lifestyle before committing. In this respect, its an excellent way of knowing what you’re getting into before delving in. Other than that, condos will put forth more restrictions in all respects for renters.