Blog Post
IT’S STILL A HOT RENTAL MARKET – BUT DON’T RUSH TO EVICT
July 23, 2015
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 [email protected] 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
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If you pick up properties at a foreclosure sale or buy REO’s, you are bound to end up with a property that is Tenant occupied. Being familiar with the Protecting Tenants at Foreclosure Act of 2009 (PTFA), will come in handy if you want to evict the tenant. (For a copy of the PTFA click here ) PTFA protects tenants from eviction due to a foreclosure on the property that they occupy. These provisions took effect on May 20, 2009, and originally were scheduled to expire on December 31, 2012. However, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) changed the expiration date to December 31, 2014. The PTFA requires a foreclosure buyer to give a tenant with no lease a 90 day notice to vacate before filing an eviction. If you give a tenant notice that is less than 90 days, you will be in violation of PTFA. This means if you jump the gun and start your eviction too early, the court will dismiss your eviction action and most likely award fees and costs to the tenant’s attorney. PTFA applies in the case of any foreclosure on a “federally related mortgage loan” OR on any dwelling OR residential real property. However, if the Tenant has a legally binding, bona fide lease, that was entered into before notice of foreclosure, the 90 day rule does not apply and the tenant must be permitted to stay in the residence until the end of their lease term, with the exception of the purchaser of a foreclosed property who will occupy the property as their primary residence. In that case the new owner does not have to honor the lease. However, even in that scenario the tenant must still receive 90 days notice before they may be evicted. When it comes to managing your single, multi-family or commercial properties, or second homes, rest easy – Octazon Management has got you covered and can protect your assets and take away your property management headaches and distractions through our full-service or back office property management services. 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. With Octazon, we bring order to residential & commercial property ownership. Call us 888-324-9528 or email us at [email protected] . Check us out @ www.octazon.com
In my June 2013 Blog, I shared with you a major change to the Florida Landlord &Tenant Act regarding security deposits that will require changes to your lease form. In that blog, I shared with you the new language. (To view the blog check here). In a subsequent blog, in July, I addressed another “security deposit” issue change to the Florida Landlord &Tenant Act, namely; If the owner/landlord or its management company failed to timely send out the Notice of Intention to Impose Claim on Security Deposit , or didn’t have the proper language in the notice that is set forth in the statute, you must return the entire deposit. See that blog here for further details. In this blog, I am sharing with you a recent case decided, July 1, 2015–Obendorf V Rasmussen. In that case, the tenant made a claim that landlord did not place the security deposit in an escrow account and therefore the landlord should not have a right to make a claim on the security deposit. The judge in Sarasota County Court ruled that although not placing the security deposit in an escrow account is a violation of Florida Statutes 83.49(1), which states that the landlord should not co-mingle the security deposit with its operating funds, however, the statute provides no penalty for such violation. Based on this ruling, the landlord was still allowed to make a claim on the deposit and attorneys fees and costs against the landlord were denied. 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 [email protected] 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
Are you getting the most out of your rental property in Miami, North Miami Beach, Fort Lauderdale or Palm Beach FL? Whether you own a large apartment complex with multiple units, office buildings, shopping center or a single home that you regularly rent out, one of the most important steps to take is to hire a property manager to run and oversee the investment. A property manager specializes in this particular field, which means that you can expect professional and sound property management advice, detailed status and financial reports, someone who is on the job when problems with tenants arise, and someone who can handle rental collections and other important tenant issues. Take a look at our article which details more benefits of Property Management for Portfolio Investors here. And see why we believe hiring a competent Property Manager is the best way to take care of your investment here. Here are a few reasons why hiring Octazon Management as your property manager is a wise and prudent move for any property owner: At Octazon Management LLC, our goal is to offer you the peace of mind that comes with knowing that your property is in good hands. We pride ourselves on superior customer service, and our dedicated, detail-oriented professionals hold themselves to the highest standards to serve your needs. Due to Octazon’s cutting edge, cloud-based property management software that fully integrates the entire property management and financial process, we set up systems that enables the investor direct access to valuable owner/investor information 24/7 bringing them “simplicity and peace of mind”. Our property management services also include: • Maximization of income • Reduction of expenses • Collection of rent payments on-line, through ACH cloud based system, by check, credit card or e-cash • Payment of all property bills • Section 8 services • Management of the attorneys handling the evictions, code violations and insurance claims • Management of tenant improvements/construction management & overseeing cleaning & sanitizing for move out/move in. • Tenant screening and leasing Keep your day job and trust your rental property to the local professionals. Call Octazon Management LLC today for more information about our rental property management services. 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 [email protected] 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 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 [email protected] 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
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