Miami/miami beach rental market

Over the last 2-3 months my sales volume has increase considerably mainly because people are starting to see that prices in Miami/Miami Beach have come down so much that it is again a smart option to buy real estate as an investment and either rent it out all the time or use it a few times a year and rent it out when not in use. 

When my clients ask me how hard is it going to be to rent their units? I am happy to answer: not hard at all!  Most of the units that I have listed for my clients have rented within the first month and many of those within the first 2 weeks.  The only disclaimer here is that the property has to be listed at a reasonable price.  If the price is unreasonable it will sit on the market.  Amazingly enough I listed a property for rent this year at an unreasonable rate (as per my clients wishes, not mine J) and to my surprise we had many people wanting to see the property.  We did not have any takers until we reduced the price to actual market value. But the story should give you an idea of how great the current rental market is.

Why is the rental market so hot?

Over the last few years when real estate was booming, many rental communities were condo-converted and sold individually.  This led to a huge chunk of the rental market inventory to be eaten up in a short period of time. 

Currently many people want to buy a home but are not qualifying for loans (as I imagine you've heard a million times in the last week loans has become more difficult to qualify for) therefore they are postponing their purchase for a couple of years (creating pent up demand that will help real estate values bounce back).

The short term rental market in Miami has officially entered season.  Our season last from November to the end of April; when we are enjoying amazing weather and the rest of the world is freezing (by no means do I intend to annoy anybody that is currently freezing while I sit out on South Beach writing this blog, hahaha).  On a more serious note during this season tens of thousands of people come from Canada, NY and Europe to spend time in the Miami area, or to attend events such as Art Basel, the Auto show, the Food and Wine festival, etc.  Many of these visitors stay for 2, 3 or 4 months and look for short term accommodations and pay a premium for it.

Short Term Renting VS Long Term Renting

Many of my clients want to know whether they are better off renting the property short (less than 6 months) or long term (more than 6 months).  In most cases it is a difficult question to answer.  But if a buyer wants to use the property himself once or twice he/she should not rent it long term.  Long term rents are great for those who are buying the property purely as a financial decision.

If you have any questions about buying a property to rent or leasing a property you already own please contact Christian Kawas at 1 561 702 2969.