Tenants Negotiating Lease Price And Move In Amount

Dated: October 13 2015

Views: 389

Truly, the market dictates what an acceptable offer to a landlord is.  When the housing recession hit South Florida, the majority of potential tenants had to overcome the obstacle of a foreclosure, short sale or credit issue on their background.  Those renters who did not get hit with these obstacles were able to score beach condo units under market value and with simply two months (First and security deposit).

 

With the upswing of the economy  and rebirth of the real estate market in South Florida, an Owner’s selection criteria has gone back to the way before the recession.  This is being hit on three fronts: low inventory, more people renting and recovery of credit woes. 

 

Additionally, not that many homeowners are placing their units up for rent.  Existing tenants are securing a unit and more likely to renew their yearly lease with a slight increase in rent.  This is causing a low supply issue for prospective tenants hunting for the perfect unit.  Moreover there is still a group of people that are not ready to purchase a property yet – for many different reasons.  Therefore, the market is flooded with prospective tenants actively looking for a rental.  Many ex-homeowners turn tenants have started to recover the dings on their credit reports.  This is causing the profile criteria for accepting a qualified tenant to increase: minimum credit score requirements and deeper examination of collections and creditors on credit report.  In fact, not only owners but associations have now started to increase credit score requirements to over 650. 

 

This combination makes it hard for a qualified tenant to ‘get a deal’ on a rental.  Landlords/Owners are getting exactly what they asked for in rental price and move-in dollars.  Some are getting more than what they ask as multiple tenants are going for the better properties and are willing to pay for it. 

 

I have let prospective tenants know that they should be prepared for 3 months to move-in (First, Last and Security).  We will try to offer only two months move-in and negotiate from there.  However, the problem arises when the property is popular and shows well, their two month offer will be overlooked and rejected without notification.  The customer will lose out on the property for a better offer. 

 

If the real estate agent can find out if there are no offers, the two month strategy could work, but be aware that an offer can come in the same time as yours or the next day.  The listing agent does not have to counter your offer if the other offer is closer or what the Owner wants.  Don’t lose out on a rental that you want that took you time to find.

--Michael Norris, Realtor for Prima Real Estate Group ©


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Angelo F. Terrizzi Jr.

I am a New England native, born and raised in the Boston area. Growing up, I was always involved with extra-curricular activities through school and church. I spent 30+ years in Business and later in ....

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