Saturday, July 20, 2013

Florida Rentals

by Craig Greenberg

Florida Rentals

Oceanfront Rentals

The homes and condos presented on LuxuryOceanFL.com for rent include the cities of Boca Raton, Delray Beach, Gulf Stream, Highland Beach, Hillsboro Beach, Manalapan, Ocean Ridge and Palm Beach.

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Please be aware that properties can be offered for rent in a variety of ways:
  • furnished
  • unfurnished
  • seasonally (short term/winter months)
  • off season (summer months)
  • and/or annually.
I mention this because the majority of the time, the list price of a property will be the least expensive price available (usually meaning an Unfurnished Annual rental).  So if you are looking for a short term seasonal rental, make sure you reference the Furnished Seasonal Rent price


Short term rentals in the state of Florida have an 11% Bed & Bath tax.  Short term is defined as rentals less than six months and a day.   Please do not ask your realtor to fake a six month lease if you plan on leasing for less than the mandatory term.  You are asking for trouble if you get caught, and I'm sure there will be penalties on top of the tax you would have owed originally.  If you rented directly from an owner in the past that let you do that, good for you, but that was then and this is now.  No realtor should ever jeopardize their license to make a rental happen.

Short term rentals also involve prepaying all rent 30 days prior to the rental start date plus a 1 month's security deposit along with any applicable application fees.  This is done to protect the owner from a renter 'flaking out' at the last minute and just not showing up.  Most likely a renter will put a one month deposit down with an offer and then agree to pay the balance 30 days prior to moving in.

Rentals also include at least a one month security deposit.  On short term rentals, an owner will not switch the utilities into the name of a renter.  They will stay in the name of the owner and the owner will deduct utilities for the term of the lease from the security deposit.  An owner should provide you with all paid utility bills when you receive the balance of your security deposit back.  A security deposit will also be used to fix any damages done to a property.  It's always best to take photos when you move into a rental.  Most renters have a phone or camera readily available, so use it and protect yourself from an overzealous landlord trying to fix up their property on your dime.

Last minute plans - please understand that if you are trying to rent a condo or a property in an association with an approval process, management companies can take up to 30 days to approve an application.   The management company may have an additional fee to expedite the approval process, so if you are trying to rent something at the last minute, please make sure to ask about the approval process including but not limited to fees, amount of time to approve, letters of recommendation, copies of driver's licenses, association security deposit, etc...

Don't be surprised to see your Realtor charge a transaction fee ranging anywhere from $99 to $300 on top of the rental.  Realtor's in Florida are independent contractors, they run their own businesses, but under the guise of a Broker.  I'd say 99% of all Brokers in Florida now charge this fee.  If you can find a Broker that does not charge this additional fee, good for you.

Be wary of rental from first time owners looking to rent their property out because they are unable to use it this year.  They tend not to want to be landlords taking care of issues if and when they arise in a rental.  Realtors are here to put owner and tenant together and then their job is done.  We are not property managers, unless a Realtor markets his or herself that way, then do not count on your Realtor to be on top of issues as they arise.  There is a place in Florida leases for an owner to notify the tenant who to call if an issue arises.  It will either be the owner themselves, or a service contract provider, house sitter or a local handyman.  Make sure you know this before you give all your advance rent in 30 days prior to the rental start date.  A renter's bargaining power is money. Once your money is in escrow, the landlord will consider it theirs and be less likely to answer your questions as they arise.

When does a owner receive advance rent?  The way Florida leases are worded, advance rent given to a Broker can be delivered to the owner immediately (once cleared in the escrow account).  If there is an approval process and the renter is not approved for any reason, the renter is to receive all their money back with no penalty.  Most Brokers (should) wait for renter approval before releasing any funds to an owner.  If they owner spends your money and then you are not approved, say hello to  legal action against the owner.   There are a lot of scary scenarios of a renter giving all their money a month in advance and then the owner not living up to their end of the deal.  That is the risk all renters take, and thank God most owners live up to their word.

Let's not just pick on an owner.  Renters too are capable of being sneaky.  I have seen renters move in during the beginning of season, November/December, for an annual rental by paying first, last and one month's security deposit and walk away from a rental leaving the owner high and dry at the end of season (April/May).  Not only is the renter walking away from the lease (breaking a lease), but they locked in the annual rate for seasonal months.  Annual rates tend to be 50% that of seasonal asking prices.  Don't be surprised to see an owner ask for 1st month, last 3 or 4 months upfront and a security deposit if you are starting an annual lease in the Fall in Florida.  Owners are catching on to this scam.

If you interested in renting in Florida and want an agent on your side with many years of experience, working on 100's of successful rentals, then please feel free to contact us.
Craig Greenberg 561-376-8540 | Craig@LuxuryOceanFL.com
Tripta Chawla 561-703-7733 | Tripta@Tripta.com