Miami Network Realty

Good news for real estate investors seeking to rent out their rental units

Competition for apartments is heating up in South Florida. And so, as a result of the skyrocketing number of foreclosures in our area coupled with the financial distress due to the unemployment of many of us, past homeowners are now fast becoming renters. A recent report by the Sun Sentinel (6/30/10) stated that it is getting much more difficult to find a rental apartment in our area with vacancy rates declining to the lowest levels since 2006. According to the report, Broward's vacancy rate has dropped to 5.3% this past May compared to 6.8% in May of 2009. The same holds true for Miami Dade and Palm Beach counties. Thus rental rates are up between 1.5 and 2 %.

"A lack of new developments is the main culprit for the tighter market" said L Keith White, President of Reinhold P. Wolff. "Another reason: the number of foreclosed homeowners seeking rentals after losing their homes to lenders".

The end result is tighter inventory of rental properties, higher rental rates and happier landlords. The wheel of fortune is definitely turning, favoring investors, at least for the time being.