Sunday, June 22, 2008

Rent Control - Here We Go Again

Some may remember the days of rent control on Miami Beach; when property owners could not afford to maintain their buildings because rent control restrictions prevented them from setting rates to cover costs (taxes, insurance, maintenance, etc.).

Many property owners walked away from the losing proposition of having a real estate investment that would not make money, could not be sold, and was declining in value because all around them other property owners were in the same situation.

During the late 70's and early 80's Miami Beach was a den of urban blight. Many buildings were boarded up, businesses closed, investment moved elsewhere and the City was nearly bankrupt. Many "flop houses" opened, head shops lined Washington and Collins Avenues, and every Friday night Miami Vice was broadcasting our troubles around the world.

The City's current proposals to prohibit short term rentals is setting controls on rents which is strictly regulated by Florida State Statute 166.043. Click here to read an analysis by one of our members which draws the connection between rent control and the City's proposed ordinances.

Miami Herald reporter, Monica Hatcher, has recently written several articles focusing on the impact of foreclosures and efforts to combat the blight they cause.

Cities struggle to fight foreclosure blight
Condo bust draws scams and squatters
Mayors seek solutions to vacant-homes crisis

3 comments:

Anonymous said...

oh my god, they can't do this, so many people bought condos and have to rent them short term to afford owning them, they'll get foreclosed on, squatters will go in, they won't pay maintenance fees, it'll be a disaster. there was just an article about condo foreclosures in the herald, it's terrible what's already happening, we can't afford more problems

Unknown said...

"they can's do this", I hope they do. most condo owners bought with certain rules in place they signed papers stating that they know these rules or atlease hae recieved a copy of them. they want to break them just to develop extra income. Sorry, I live in a building where they have a rule of 2 years minimum and guest policy is 6 calendar days then they have to register for security for $250. We all watch out for those " special rentals " on Craigslist and have fined multiple owners for trying to make extra money by doing seasonal short term rentals.

Sorry if you did not do your research, but from what I understood, the law in Miami beach and other areas along the waterfront required the homeowner to file for a tax id to do short term rentals. I want you to pay your taxes on the abuse that your short term winter renters do to my properties.

I hope they pass the law, make it tough. collect the money and spend it on more cops

As for squatters, that happens when people don't care about their neighbors. You see something, call the association or the police. it's your property values that you are protecting ( and maybe your life ).

As for disaster, you forgot that all markets go up and down. I look at the building Roney Palace, it's a weird building that people like and it has volume of business. I have seen studio's in that place go from 230K all the way to 420K now going south to 190ish. ( heard that a studio went for 164K recently ), but the point is that if you don't research your investment and plan for some issues, you will get hurt if the market tanks.

is it terrible, no, just the markets behaving properly and it should settle out when properties start to yield some sort of realistic cash-flow.

Anonymous said...

many people buy in condos that allow short-term rentals, pay their tax, and they deserve to be able to rent them however they want. condos are democracies, not everyone will ever be happy, but everyone has to follow the rules of the condo they live in. you can't make one rule for everyone. i think it's good you are fining people in your condo, but the city shouldn't make a rule saying that all condominiums must follow your rules, my condo building wants to do short-term rentals!! it's how many of us afford our second homes.

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We are a grass-roots coalition of property owners dedicated to protecting the rights of property owners in Miami Beach, Florida. If your property rights are being threatened we want to hear from you. This website is intended for informational purposes only, reflects various opinions of our members, and is not intended as legal advice. Do not rely on the opinions or information stated herein as legal advice.