It’s no surprise that finding a home is a struggle right now.
And that’s no more true than in Florida, where unprecented housing demands have left both buyers and renters struggling.
Some South Florida renters are stopping just short of bribing prospective tenants for acces to their rentals — offering hundreds of dollars a month more than rental price or full years of rent up front.
How’d we get here? Via several converging paths. Would-be homebuyers who’ve failed to lock down the homes they wanted are now settling for rentals; while long-time Floridans have realized just how good they have it in their home state and are doing everything they can to be priced out.
Landlords, as you might expect, are responding to this increased demand by raising rent prices… a lot.
Florida Real Estate Examples
Here’s one real-life example from Nathan Zieman of The Corcoran Group in Delray Beach. He recounts seeing a client get outbid on a Delray Beach townhome. Three other hopeful renters-to-be put in offers over the townhome’s $2,600/month rental price. Zieman’s client refuses to overpay for a rental, perhaps for ethical reasons, or perhaps because they have a sensible budget. Regardless, the end result is the same, and the search continues. This client’s search has expanded to encompass any locale between Fort Lauderdale and Jupiter.
Other real estate agents share similar stories. Karen Johnson of the Broward, Palm Beaches & St. Lucie Realtors says a rental home listed for $3,800/month received three offers for $4,200. Other people offered to pay six months up front — $22,800 in total.
Another agent, Adam Docktor from Compass Realtors in Ft. Lauderdale, paid $26,000 up front to rent a townhome for the year. For all their aggression, these renters had previously failed to secure a home.
And here’s the thing: These renters have only set themselves back when it comes to their ultimate goal. “[They’ve got] great credit [and] money saved up that would have gone towards a mortgage down payment,” real estate advisor Whitney Dutton explains. Now that mortgage payment might be gone.
As we mentioned earlier, this increased demand means rental prices have soared. In Palm Beach County the average rental goes for $3,108 — up from $2,300 the year before. In Broward County the average rental now goes for $2,338 — up from $1,988 the year before.
Those who can pay up are doing so.
Need help finding renters? Icon’s here to help!
From the tenant end of things, keeping tabs on all these potential renters has become increasingly difficult. If you need help vetting an enormous amount of eager, prospective tenants, let Icon Property Management handle the stress for you.
We’ve been navigating Florida’s real estate market for decades. Suffice to say we’ve seen it all! Our experience means we can help line you up with the right renters to suit your property.
Schedule a free consultation today by contacting Icon online or calling (321) 297-8960. We look forward to seeing how we can make your life as a rental property owner easier!
To smooth sailing for your rental properties,
Icon Property Management
