According to the Florida Association of Realtors, in a study (poll) done, in LOS ANGELES – May 6, 2011 – More than three-quarters (82 percent) of independent landlords say they would rent to someone who lost a home in foreclosure, assuming the applicant traditionally had good credit, according to a survey released today by The National Association of Independent Landlords.
“Landlords typically won’t rent to applicants with poor credit – and a foreclosure will absolutely slam someone’s scores. The exception is when they see people who have paid their bills their whole life but lost their job, can’t meet their mortgage and must hand their keys back to the bank,” says Tracey Benson, president of The National Association of Independent Landlords.
Despite recent credit problems, Benson says applicants with a foreclosure can prove good risks, chiefly because they did once own their own home. “These people are used to taking pride in where they live.”
Increasingly, mortgage defaults stem more from lost jobs rather than borrowers who had a toxic mortgage they could not afford. A thorough background check usually indicates whether financial woes are part of a recent spate of bad luck or a life-long trend.
The National Association of Independent Landlords polled 563 members from March 21 through March 25, 2011.
© 2011 Florida Realtors®
The Miami Herald recently published a story regarding the lawsuit filed by Bank of America against Everglades on the Bay. This story was extremely informative to us; as a brokerage specializing in luxury rentals we are constantly seeking great deals for tenants while trying to ensure a safe and secure community for the tenants.
Apparently Bank of America filed suit against the developers of Everglades on the Bay; this motion entailed the banks effort to seek dismissal of the communities chapter 11 case. The bank was claiming that the developers rental program would diminish the value of the property which is the collateral for the loan; therefore, endangering the banks position. There were also some accusations regarding the developer’s sub-standard practices in screening the tenants; thereby allowing persons with criminal backgrounds to enter the community. This second accusation (screening practices) was apparently found to be unsubstantiated. The judge also found that the property was not losing value due to the rental the program.
In a nut shell the developer was rewarded the case and will (at least for now) be able to continue it’s chapter 11 bankruptcy which will allow for re-organization and actually pay back a good portion of the debt it has incurred. The developer may also continue to rent unsold units. In addition, the bank may have opened themselves up to some liability; the developer may now seek to recover funds “for any extraordinary damage caused.”
Everglades on the Bay is a 49 story, two building luxury condo community located on northeast second street and Biscayne Blvd. This community is very attractive and with 849 condo units of which only a fraction have sold you can only assume that the develper will be offering attractive incentives to buyers as well as tenants. If you are in the market for a primary home (buying or renting) or perhaps a nice investment property be sure to consider this property as one to place on your roster to view.
There is no doubt in anyone’s mind that Miami has generated a tremendous real estate rental market in recent years. The fact is that the real estate boom of years past created many real estate investors hungry for qualified tenants to fill their properties. These investors range from the individual dabbling in real estate all the way up the spectrum to your complete real estate developer. This fact coupled with the fact that the recent down turn in the economy left many folks (unfortunately) losing their homes. Now take the people that have lost their homes (who normally would not have rented) and add them to the rental pool of tenants along with those that would normally rent anyway for other reasons and you have a larger pool of tenants to match the larger pool of rental inventory.
But still; why on Earth would you need a real estate professional to assist with a rental.Well, the reality is that there are several reasons for both landlords and perspective tenants to utilize a professional.
Lets start with the tenant:
With such a large inventory where would you even start? You cant just walk in to a building and ask the concierge what is available for rent. You may decide to visit craigslist or backpage but oh my godness that really didn’t narrow it down with about a 1000 posts going in daily. The newspaper is another option…. or really is it? In the information age the newspaper is way too slow by the time the add prints the unit is gone, again a frustrating waste of time!! So what to do? That’s right; your Realtor will be able to simply log onto the MLS and view what is available in real time based on your criteria, that’s right REAL TIME! OK, so you may not want to speak to someone who is going to be pushy and try to get you to come in so they could eventually ….. earn that commission. OK, got a solution for that as well, log on to a good Realtor website, I recommend one that does not insist that you register first, one that truly gives you FREE information with no catches, that is unless you just absolutely cant live without more junk email. Try Miami Rent Seekers this site will allow you to browse all available inventory on the MLS. Yes, I said the MLS, this information is provided to the public through a system called IDX which in layman’s terms just means it is syndicating the MLS for public view. You will be able to see ALL listings, not just the ones listed by that agency but ALL listings from ALL brokerages in the area! WOW!
Now, just pick an agent you feel you want to work with.
Your new agent and best friend (that is at least until you happily move in) will show you the properties that you are interested in, draft up the offer you want to make, prepare – review and explain the lease agreement and any addednums, guide you through any condo board or HOA application process, provide any local information you may require and assist you with your move in inspection.
Now how much will all this cost you???? You will get this for the bargain price of FREE!!! That is right free, the landlord actually pays his broker who in turn pays your broker, you pay nothing for the services.
Well, your next questions is probably – “well, wouldn’t I get a better deal if I deal directly with the owner?” To that I would say, “No, the owner will much more than likely (because of the benefits they receive) have listed the property with his broker, so at the end you will find yourself dealing with a broker, except this broker represents the landlord. Wouldn’t you like to have someone looking out for you?
So why would you use a broker if you have a property to rent out, you are the landlord?
These benefits are plenty. Number one is TIME. Do you have the time to run out and show the property every time someone calls or expresses an interest? What about MONEY? Do you want to pay advertisement to get the perspective tenants interest in the property you have available? What about EXPERTISE? Are you familiar with leases and addendums and the condo board process? What about the fact that your property will simply not be on the MLS if you are not listed with a broker? What about the monthly relationship with your new tenant? Did you know that many brokers offer property management services? What about the combination of TIME and MONEY, that is to say the faster I rent out the property the faster I collect more money!
In conclusion, in this great rental market the way to go is to use a Realtor and you will find the process much less frustrating and more enjoyable.
South Florida Brokers & Associates, Inc.