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9 AUG

Rental & Mortgage COVID Trends in Palm Beach County

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Rental & Mortgage COVID Trends in Palm Beach County

We have 2 Echo Real Estate Roundtable interviews today.

The 1st roundtable interview  is with Will Dean. Will is our rental expert and has been with Echo Fine Properties for 7 years. Will handles over 100 rentals a year.

There is a ton of movement going on with rental units right now. We discuss new trends we are seeing with Covid including rental scarcity, higher prices, and what will happen when the eviction memoriam is lifted (and what happens when a tenant doesn’t pay). Lots of do’s and don’ts in rental contracts.

Will shares why rentals are like dating…

 

and the increased maintenance and major system replacement as everyone is home. There is more emphasis as he says on TTT. Tenants, Toilets & Trouble.

 

Watch LIVE on Facebook  or scroll down to see.  It will also be on our ECHO TV  or latest videos  today.

You can now search all rental property in Palm Beach and Marin County right here. Also, if you are looking for commercial space or selling it, search for commercial property by clicking on the commercial property tab.

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Topics that we discuss with Will…..

Tenant qualifications – I like the bank to “underwrite” the lease, income, credit, debt to income/rent ratio. 2.5 to 3X income. An example is  $4,000 per month. It’s best to see no less than $10,000 per month coming in. Ideally $12,000. Will talks about ‘does the credit score matter’ or ‘does the amount of debt and type of debt matter’, and differences between credit card debt and student loan debt relating to rentals.

The two profit killers: maintenance, and vacancy. How to minimize?

Setting expectations. Will’s Basics….

  • From the start while showing property, before the lease is signed, and explaining the process.
  • 60-day notice to renew or vacate.
  • Tenant responsible for minor repairs. First $100 for condo, first $150 for single family home.
  • Want to live somewhere with a “higher level of care”? This exists and the price is significantly higher.

What happens when a tenant does not pay rent?

Why there are more renters in Florida than other areas?

  • Transients
  • Cost of living higher
  • Wages lower
  • Easier in the short term to rent

What matters most to tenants? 

  • Flexibility
  • Premium features they are unable to afford by purchasing a home

What happens if a landlord stops paying HOA or Club Dues

  • Will they deny my tee time?!

 

  • Gate access?

 

Tenants’ rights and landlord responsibilities.

If a condominium owner is more than 90 days’ delinquent in paying assessments on a unit, the condominium association can suspend the rights of that owner – and any tenant for that unit – to use common aspects of association property until their fees are paid in full. The suspensions cannot apply to limited common elements intended to be used only by that unit, common elements needed to access the unit, utility services provided to the unit, parking spaces, or elevators. (Section 718. 303(4), Florida Statutes).

Additionally, both condominium associations and HOAs can make written demand of a tenant to submit rental payments to the association until the delinquent balance has been paid in full.  (Sections 718.116(11) and 720.3085(8), Florida Statutes)

 

Rentals are similar to dating and re-sales are similar to marriage. Relates to commitment and length of this. 

Explain, Explain and over explain.

 

Better someone understand what they are signing up for. It makes for a better overall experience for both sides.

 

How to start a lease of right, things to do for a smooth tenancy.

Set exceptions from the start, “surprises are never a good thing unless it’s a birthday”. While a prospective tenant is viewing property, they should also know what services or utilities they are responsible for.

New multi family construction coming on the market…. right now not working with agents, however it’s a good concept.

1 bedroom around $3k in Palm Beach Gardens, becoming available in the next 12 months. Some companies are filling a void in the market with a rental community with on sight dining and activities.

Something exciting and brand new is coming to Palm Beach Gardens! Presenting Arcadia Gardens, a premier Senior Living community that sets new standards for luxury senior living in Palm Beach Gardens, Florida. Be one of the very first to have an inside peek at Palm Beach’s newest luxury senior living community. Life enriching programs and activities, daily fitness classes, restaurant-style dining, and an unbeatable location exclusively at Arcadia Gardens. Community highlights include a private dog park, outdoor firepit to complement the relaxing outdoor patio, community garden and lake, salon complete with massage services, and elite fitness center, coupled with a highly sought-after address in Palm Beach Gardens, Florida. Residents can choose between living in a one or two-bedroom luxury apartment, all featuring cozy bedrooms, ample storage spaces, 24-hour emergency call system, and private outdoor relaxation areas. Fun, independence, and relaxation are a guarantee at Arcadia Gardens!

 

COVID Trends in renting

  • Increased maintenance and major system replacement as everyone is home. TTT  – Tenants, Toilets & Trouble.
  • Increased the importance of “qualifying tenants” prior to in person property showings, Where is your credit and income? Rent to income ratio, credit minimums. When are you looking to move? If a rental is vacant and tenant needs it and want to move in. Is 30+ days unrealistic?
  • Increased demand from North Easterners and Mid Westerners looking for a second residence, rented for 12 months, used part time.
  • Prices have been driven up as supply has decreased. Single family home rentals $5k and above has increased.
  • Wearing a mask new normal,
  • Overall, I think “the home” either owning or renting has become more important as time spent there has become more important.

 

Posted in About Echo, Open House Blog, Real Estate, Videos on August 9, 2020 at 4:21 am.

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