COST OF RENTING A PROPERTY IN MIAMI
- Miamiâ€™s rental market has very high demand and moves extremely fast.
- 99% of the time, the standard Landlord requirement continues to be 3 months of rent up front, which includes First Month, Last Month and Security Deposit.
- Landlord might consider offers with less solid financials or credit scores but will likely ask for 1 extra month of advanced rent or 2 security deposits to compensate for the risk.
- Tenants should also anticipate ADDITIONAL COSTS related to the propertyâ€™s Association. Typical Fees may include, $100-$150 non-refundable Application Fee PER PERSON (unless married), around $300 Move-in/Move-out non-refundable Fee, $500 Elevator Deposit check (not cashed and returned immediately unless damage to elevator during move-in), and a COMMON AREA DEPOSIT (refundable at end of Lease if no damages to buildingâ€™s common areas). This Common Area Deposit can vary greatly by building, and ranges from $250 up to a Full Month of rent. If it is a full monthâ€™s rent, sometimes the Landlord will help by paying half or the whole deposit, but he will be at risk if the tenant damages anything in the buildingâ€™s premises.
- A Pet Deposit, if permitted, is usually charged by Landlord AND/OR Association. Very few buildings allow renters to have pets and, if permitted, most have weight restrictions (usually less than 20 lbs or up to 50 lbs).
SUBMIT OFFER FOR LANDLORD
- Ideally, offer should be accompanied by Tenantâ€™s Information including employment information, credit score & history, current residence history, landlord recommendation letter, and a copy of driverâ€™s license.
- Offer should also include a Check equal to the First Monthâ€™s Rent payable to the cooperating broker. By law, Broker has 3 days to deposit into Escrow Account. Offers that do not include proof of this escrow deposit are usually not taken seriously or even considered. This check will cover the tenantâ€™s first monthâ€™s rent. In the case tenant is not accepted by the association, check will be returned to prospective tenant.
- Depending on landlord and unitâ€™s demand, lower offers might be considered. Units with multiple offers or high demand will most likely go fast at full price. Only offer lower if you donâ€™t mind losing the unit and you have more time & options.
- If unit is listed at market price, owners will usually discount between $0 and $100.
- The better the offer and the more solid the tenantâ€™s credentials, the faster the owner will reply (usually between 1-3 days) and the higher probability he will accept the offer.
SIGN LEASE AND APPLY TO ASSOCIATION
- If offer is accepted by landlord, tenant should apply to Association ASAP.
- Association Application Packages usually require a lot of information to be filled out.
- Association usually looks at applicantâ€™s BACKGROUND CHECK, FULL CREDIT HISTORY, EMPLOYMENT VERIFICATION, CURRENT RESIDENCE/LANDLORD INFORMATION, PERSONAL REFERENCES, DRIVERS LICENSE, and INCOME VERIFICATION such as PAYSTUBS or BANK STATEMENTS.
- For STUDENTS or INTERNATIONAL APPLICANTS with no credit history, Bank Statements and supplemental info is most likely required.
- Very LOW CREDIT SCORES, FINANCIAL DELINQUENCIES, HISTORY OF EVICTION or DUI are many times reasons for REJECTED APPLICATIONS by Association.
- When delivering Application Package, make sure to include a copy of the EXECUTED LEASE signed by everyone, and all payments required by Association. If ANYTHING is missing, package will not be received or processed until complete. MAKE SURE YOU FOLLOW ALL INSTRUCTIONS & TAKE CARE OF EVERYTHING IN THEIR CHECKLIST.
- Associations usually take between 5 and 10 BUSINESS days to process an application, and neither the Realtor nor the Landlord have control over this.
- Make sure to ask about ELEVATOR RESERVATION process and dates.
PREPARE FOR WALK-THROUGH AND MOVE-IN
- Once accepted by the Association, Realtor will set up a Walk-through date with tenants and give them instructions for the BALANCE due (2 months)
- A CASHIERS CHECK IS ALWAYS REQUIRED AT THIS MOMENT AND IS EXCHANGED FOR THE KEYS AFTER THE WALK-THROUGH.
- During the Walk-through, an inspection of the property is performed by the tenants and Realtor(s). It is important to write down the conditions of the whole unit and it is recommended to take pictures of any damages present before the tenant moves in. Both Realtors and tenants should keep copies of this report.
- Congratulations, now you are ready to enjoy your new home!! Ask your Realtor who you should contact in case you encounter any problems.
Article by: ADRIAN MORALES DOBRZYNSKI