update to this post….. sorry for the earlier randomness in wording if you saw it.  working on site and something was off…should be correct now.

This is a version of an email that I get about once a week from different people…

“Dear Jamey-

I found a listing on your website for a two bedroom at Bentley Bay for $3500 per month.  I would like to offer $2000 per month, if your clients will take this offer, I will sign a lease today.

Regards,

Everyone’s desperate to rent their condo on Miami Beach because there are a zillion vacant listings on the beach.

Dear Everyone’s desperate (…)-

If this is how you are going about finding a rental in this city, I bet you are having a very difficult and frustrating time.  The myth is that there are tons of vacant properties on the market and owners are desperate to rent out their units, the truth is….  not so much.  Plus it depends on the area, South Beach is much pricier than some other areas.

This is probably one of the biggest hurdles that I have to overcome when I initially speak to a rental customer,  setting proper expectations.  This thing is there is really no “guessing game”, “make me an offer game”, because there are active and closed rental data in our MLS system.  The owner’s agents have access to this data too.   It’s kind of tough to offer $2000 when the units are going for higher averages.

Yeah, yeah I know your friend got their unit for only one deposit down and paid $1800 a month for that ultra luxe place in South of Fifth.  The truth is, I looked up the closed data on the MLS …….  your friend told you a big fat story.  In fact this seems like the new fashionable talk of town in Miami and Miami Beach, “Can you believe I got a rental at this place for only $xyz?”

a little sidetracked below—

One other big issue with this offer is that I know if you have sent this to me, you have probably sent it to 20 other agents too.  When I take on a new rental customer, I ask for them to work exclusively with me. I don’t work with people who are working with 5 other agents.  Why should I?  First it’s against our ethics policy and second why should I invest my time in someone who is not committed to me?   I give my customers 110% and expect the same commitment in return.    We all have access to the same database, same properties, why work with 10 different agents?

Think about it this way, if your agent knows that you are 110% committed to them, don’t you think that they are going to work harder for you?  If not, fire them and find someone who will work 110% for you.  Call me.  Don’t call around 10 different agents and ask them to show you properties.

We always find out.  We do.  It’s not that you should really care so much that we find out that you are cheating on us; rather it’s that a small little “uggh”  is felt deep inside, the doubt starts to develop and personally for me when I find out, I say “bye, bye”.  I would rather spend more time dealing with my customers who I know are not cheating.  I am not desperate.

back on track here–

So here is the real low down.  Let’s say for instance you want to rent a condo in the South Beach area of Miami Beach.  Your criteria is as follows:  2 bedroom at Bentley Bay.  Right now on the MLS there are 9 rentals listed.  The price per month starts at $3100 for an unfurnished two bedroom and up to $5800 for a furnished two bedroom.  Over the last 90 days there were 10 two bedrooms rented from $2400 up to $3800.  Based on these statistics it takes about 2.4 months to rent a unit at Bentley Bay, which on average is right on for the typical time frame to rent a unit in South Beach, about 3 months (priced right).

So is your offer for $2000 a month realistic and is it a good deal for the owner to just get it off the market?  Averaging all figures together for the last 90 days,  the average rental for an unfurnished 2 bedroom unit at Bentley Bay is around $2762.  Now I should also mention three of the units  pulled into these averages were on very low floors (3, 5 & 6) and it’s pretty typical that the higher floors do garner a higher rent.   The lowest on the 3rd floor rented at $2400.

Speaking just to the averages, $2762 per month and you offered $2000.  Assuming it’s a twelve month lease,  the first garners $33,144 per year, while the second $24,000.  That’s a difference of $9144 per year.  Even if they do loose three months holding out for the $2762 per month, they will make $858 more per year waiting.  So no, your offer is not so good.  Not to mention that most owners want to hold value in their property and reducing the rent by $762 a month is not holding value and it also decreases the rental prices throughout the building.

Thank you for your inquiry, Everyone’s desperate and happy renting!

The compilation of listing and market data information is provided by the REALTORS Association of Greater Miami and the Beaches. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental.  I do my best to double check for accuracy, however I am human and errors can occur.  Please contact me if you find something that doesn’t look correct and I will be happy to look into it and correct if necessary.