You’ve entertained the thought of investing in Miami Beach luxury homes but you don’t want to take the risk of losing money since prices are still going down, that’s certainly understandable. In such a situation, it may be wise to seize upon the heightened demand for rental homes which produce a steady income and can be sold off once the South Florida real estate market gets better. Becoming a landlord of sorts does however come with a few important items to be aware of.
A rental home is a business. While for you it may simply be a residential property investment, the money generated from rent is a form of income which means it’s taxable. Most insurance policies do not cover what is now a business which means you may need to take out additional insurance in order to protect tenants and the property itself in case of damages.
Lawsuits do happen.In a perfect world tenant lawsuits would not exist but they can happen. Strongly consider hiring a lawyer or property manager who knows what laws and regulations the state has when it comes to rental property. They can also make sure the rent you’re charging for that Miami Beach oceanfront condo is justified.
Appearances are deceiving. Anyone can say they’re financially responsible but their credit report may prove otherwise. Taking the time to know who the tenant is and whether they’re a financial liability waiting to happen can save you headaches and lots of money in the end. With that in mind, it may be wise to consider a lease to reduce the chances of the tenant suing you if they’re evicted.
Rental properties are homes themselves.They may not have the same appeal as actually owning a Miami Beach home but tenants still put a lot of importance on the appearance and upkeep of the property they’re paying rent for so it ultimately works in your favor to ensure it looks nice and is well maintained.
The Kleer Team specializes in renting luxury condos in South Beach, Miami Beach, Bal Harbor, Sunny Isles Beach, and Downtown Miami. With our annual rental program, we can help you find the perfect condo you are looking to rent in Miami Beach. Click here to search available Miami Beach Condos for rent.
