Rentals and property management affected by foreclosures

Home

Search for a home

Avoid foreclosure

Bank owned

Fixer uppers

Florida foreclosures

Property management

Due to the state of the market, property management is experiencing success along with a new set of struggles. 

Because the price of homes for sale has decreased compared to years past, many homeowners are turning to the rental market. Many of these customers are “flippers” that purchased too late in the game. This has created an increase in available rentals resulting in decreased rental rates. 

The threat of foreclosures is affecting both sales and property management. 

When a distressed homeowner does not sell their property as quickly as planned, they decide to list the property for rent. This will only result in additional problems for the homeowner.

Rental income is not likely to cover the mortgage, not to mention the HOA dues, taxes, and insurance. The extra income earned would only provide a minimal amount of what is due to the mortgage company. 

The end result is still foreclosure although now the situation is heightened because they must contend with a tenant. Many tenants decide not to pay the rent when they receive a foreclosure notice creating unnecessary legal issues for the homeowner and tenant. 

In an effort to prevent this, our property managers are trained to thoroughly screen homeowners prior to taking on a listing. Although we cannot guarantee that a foreclosure will not occur, it certainly will reduce the amount of foreclosures that would have occurred otherwise. 

Give us a call at 407-304-0255 to discuss your current situation.