Good news for investors- the South Florida rental market is still hot – actually the hottest it has been in years!
There has been a surge in apartment construction which is largely due to developers taking advantage of millennials who want to move out of their parent’s house but can only afford to rent.
While the monthly cost of owning a home is still less than renting in the majority of markets, for now, the dream of homeownership is being postponed, due to the reasons such as lack of available funds, median income, millennials still struggling to qualify for mortgages and less inventory of homes caused by investors and other cash buyers who are not tethered to the typical affordability constraints.
Another reason why millennials are bypassing homeownership for rentals is that they simply do not want to be strapped down at this stage if their life. If you don’t plan to stay in the home for seven years, it’s better to rent versus buy, despite rents being higher than homeownership. Of course having apartment amenities, like the pool, the gym, the park, the playground, is also very attractive.
The affect – due to the desire of young professionals to live in urban settings; and the lack of apartment construction from 2008 to 2013- Urban areas are bustling trying to keep up with the booming rental market with the demand for more rental houses and apartments. This demand continues to drive up rent prices and creates less vacancies. It is even causing fewer evictions as tenants are more apt to behave themselves, liking their locations and having less alternatives of where to go.
This means at the same time, with units being quickly rented, it has allowed landlords to be less tolerant with problems and difficult tenants and faster to pull the trigger on evictions.
Of course landlords still need to have the same valid grounds to evict a tenant and should not let the hot market make them overly confident to pull the eviction trigger too soon. While the market dynamics have changed the eviction laws have not. To bring a weak eviction can be very costly, especially if you lose and have to pay the tenants attorney fees. Let your attorney advise you if you have a strong case or if you need to work things out with your tenant.
About Octazon: Whether you own a few properties or hundreds of properties in Florida, Octazon Management, LLC is here to simplify property ownership and management. We can help you manage any and all of your properties. When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales– so you never have to worry about losing control of your relationship with the owner.
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This BLOG is to provide helpful information and should not be considered legal advice