It’s Still a Hot Rental Market – but Don’t Rush to Evict

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. 

Providing Simplicity and Peace of Mind™ 

Call us 954-674-2467 or email us at info@octazon.com today.

Check us out @ www.octazon.com 

SINGLE FAMILY HOMES- MULTI FAMILY – COMMERCIAL – OFFICE INDUSTRIAL

This BLOG is to provide helpful information and should not be considered legal advice 

July 4th – Fireworks , Hazards and Safety

July 4th

I previously blogged about July 4th and how it brings out the patriotism in people including your Tenants. In that blog we discussed the proper use of displaying a U.S. flag. ( see the article on my blog here)

In this new blog, we will discuss one of the dangers of July 4th – fireworks. While fireworks can look cool and create a buzz of excitement, believe it or not – not everyone loves fireworks. On July 4th, more U.S. fires are reported than on any other day, and fireworks account for two out of five of those fires. Even more shocking is according to the National Highway Traffic Safety Administration,   July 4th is the third most-deadly holiday celebrated in the U.S. following Thanksgiving and Labor Day.

So what are landlords to do to protect its tenants and their property:  For starters, there is the dissemination of the basic safety tips from the US Consumer Product Safety Commission:  Never allow young children to play with or ignite fireworks – Never place any part of your body directly over a firework  when lighting the fuse and always  back up to a safe distance immediately after lighting fireworks. Never try to re-light or pick up fireworks that have not ignited fully. Never point or throw fireworks at another person. And most important keep a bucket of water or a garden hose handy in case of fire or other mishap and after fireworks complete their burning, douse the firework with plenty of water from a bucket or hose before discarding it to prevent a trash fire.

It is best to make tenants aware of the rules regarding fireworks and other explosive devices at the inception of renting, by having a clause in your lease that prohibits their usage in or around the property. A sample good lease clause is:

Explosive devices, smoke bombs, firecrackers, flares, sparklers, fireworks or any other noise, smoke, flame or spark-creating item or novelty is expressly prohibited in the Property or anywhere on the Property or common areas. Possession of and/or use of any of the foregoing by the Tenant, any occupants or guests of the Tenant whether or not the items are legal or illegal to purchase, possess or use under the laws of the State of Florida, may subject the Tenant to eviction from the premises and shall constitute a serious default under the terms of the Lease Agreement.

If your leases do not contain the above clause or a similar one, then add this to your rules and regulations and notify each new tenant of the revision. Upon lease renewal, add in language as part of the lease renewal.

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. 

Providing Simplicity and Peace of Mind™ 

Call us 954-674-2467 or email us at info@octazon.com today.

                                Check us out @ www.octazon.com 

SINGLE FAMILY HOMES- MULTI FAMILY – COMMERCIAL – OFFICE INDUSTRIAL

This BLOG is to provide helpful information and should not be considered legal advice