Today, some people are in favor of renting, rather than buying. The Brevard County Florida housing bubble is creating new risks for some tenants. In addition to some other areas of the country. Many houses and condos are available for lease. Owners are forced to rent them out. They haven’t been able to sell them for the peak prices they paid in 2005.
Landlords are renting at a deficit. They are paying more in monthly mortgage payments, taxes, insurance & association fees than they are receiving in rent. Their sentiment…some money is better than no money. But, how long can they continue to pay out? Often times, for a very short period of time. Then, tenants are losing their homes. They are paying their rent. But, landlords are unable to keep up with the mortgage payments. So, tenants are being forced to move because of the owner's foreclosure, without being legally evicted! Tenants are losing their security deposits, and their last month's rent. And, most have no recourse! It’s happening everywhere!
Here in Brevard, we get nearly 2-3 calls a week, from tenants telling us that they are being forced out. Often times these people don't have the funds saved up to move to another property.
I have heard of many landlords that are currently collecting the rent money from their tenants, and pocketing it. I have heard owners say, "It's going into foreclosure anyway, why waste the money? "
Being a landlord myself (a willing one) I am baffled by the mentality.
Many owners never planned on being a landlord. They bought houses hoping to “flip” quickly at a profit. Some bought under normal circumstances. But, now they must sell and can’t, because the market took a downward turn, and we are experiencing a market correction.
In 2006, nearly 50,000 non homesteaded property owners did not pay their tax bills in Miami-Dade and Broward County, creating additional problems.
So, if you are a prospective tenant or know prospective tenants, be sure you ask questions of your prospective landlord. Check county records to see if a property you are considering is going into foreclosure. Do your homework before renting from anyone!
Comments(0)