Miami Real Estate Rental Market ý 10 Mistakes Landlords Make
Renting a property in the Miami real estate rental market is more difficult than ever before. The number of potential problem tenants is overwhelming. The landlord must be able to set the correct rental price, advertise and market the property aggressively, collect all deposits, conduct a thorough tenant screening, collect the rent, do evictions, fill out the residential lease and all other pertinent documentation and disclosures, avoid emergency tenants and donýt try to do it yourself.
These are the 10 mistakes landlords make in the Miami real estate rental market.
1. Price ý The landlord does not know how to obtain the right rental price. He/she will listen to a family member or friend who is not an expert and will offer the wrong amount. The landlord will lose hundreds of dollars a month if the house is rented for the wrong amount. The Miami real estate agent must obtain comparables of recent rentals in the area in order to determine the best rental price for the property. The comparable property must be similar to the subject property. The rental amount should not be negotiated.
2. Advertising ý The landlord will try to save money and not advertise the rental property. This lack of exposure will hurt the landlord deeply. It is very important to advertise the property in all local newspapers, magazines, flyers, etc. The Miami real estate realtor should conduct at least one open house to get the proper property marketing. The property must be listed in the MLS to ensure maximum exposure.
3. Deposit ý The desperate landlord will rent the property to the first person that walks in and will not collect any money in deposit. This is a recipe for disaster in the Miami real estate market. Never show that you must rent the property immediately. A three month deposit must be required up front. The third month deposit could be negotiated and paid in installments if needed.
4. Screening ý Always obtain a thorough tenant screening investigation for potential tenants. Obtain a credit check, get a police report, call employers, check references, call prior landlords and ask if they would rent to the tenant again and did they pay the rent on time. Make sure the tenant has not been evicted before. Properly screening the tenant is an essential step in Miami real estate property management.
5. Evictions ý Delaying or not evicting a tenant fast enough is a tremendously time consuming and costly mistake that will devastate the landlord. The landlord must be prepared to evict if after all the screening the tenant still wonýt pay the rent due to lost of job or other unforeseen problems. Evictions must be started immediately. The Miami real estate rental realtor should be familiar with non-paying tenant eviction proceedings.
6. Emergency ý Avoid a tenant who must move in immediately. Do not allow the tenant to move in without a full screening and verification being completed. A tenant who must move in right away is usually being evicted or has some other hidden agenda. Check all prior landlordýs references and run an eviction check and a credit check. Donýt allow the tenant to rush you into making a decision.
7. Lease ý Never rent month to month or worse never rent the property with no lease at all. Always insist the tenant sign a one year lease and collect at least one month deposit. In todayýs Miami real estate rental market a two month deposit plus the current month rent is the norm. All legal and biding documents should be in writing to avoid any misunderstandings. A lease is always required in court to provide repair, terms, and lease expiration and rent determination. All legal documents should be in writing.
8. Occupancy ý Never give the tenant possession of the property without signing the lease or without a deposit. Do not give the tenant the keys to place some furniture or other small items inside the property. Tenants have been known to move in the premises before all terms and conditions have been established. Tenants will occupy the property and keys should be delivered only after all the paperwork is signed and all funds have been verified and deposited.
9. Repairs ý Donýt allow the tenants to make unnecessary repairs prior to renting the property. Painting and cleaning the property is normal should be done. New refrigerator, new kitchen cabinets, new air conditioner, complete remodeling is not normal and should not be tolerated. Do no rent to tenants that have a long list of things to be repaired. Never allow the tenant to dictate all the terms for repairing the property as a condition of renting.
10. Donýt do it yourself ý Always hire a Miami real estate professional do all the work for you. A landlord that tries to save money by doing it yourself will make a costly mistake. Usually the fee is only one monthýs rent. Collecting and Evictions services are not included and are charged separately. The money you save by doing it yourself in the beginning will cost you triple in the end.
Landlords must avoid amateur mistakes in Miami real estate property management. Certain rules must be followed in order to rent the property to a good paying tenant who will pay the rent on time and take good care of the property. Most landlords simply do not have the time or the knowledge to properly conduct all the necessary steps in order to ensure renting the property to the best candidate. The best way to prevent non-paying tenants and avoid tenant evictions is by not renting to bad tenants at all. Hiring a Miami real estate professional to rent the property for you is a must.
Hector Lesende is Owner/Licensed Real Estate Broker in Miami South Florida. Please visit Miami Real Estate We will sell your home from only 1% commission. We provide a free Foreclosure and MLS list. Search Miami Lakes Real Estate and Coral Gables Real Estate We offer a South Florida Rental List updated daily.
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