Lee County has some of the highest rental increases in nation (Fort Lauderdale: appointed, section 8)

[chiluvr1228]

Rental prices in Fort Myers rising faster than anywhere else - ABC-7.com WZVN News for Fort Myers, Cape Coral & Naples, Florida


FORT MYERS -

Affordable housing is hard to come by in Fort Myers. A study found rent prices are rising faster in Southwest Florida than in the rest of the country.


In fact, people in the City of Palms are paying a premium in rent, according to the study released by Lending Tree, which found a 38.2% jump in rental rates between 2011 and 2016 - $435 on average.
"Times were very tough where I had to seek out this kind of affordable housing, and I thank God that I did," said Jarnise Eady, a mother of three living in the Renaissance Community, public housing and Section 8 housing, in Fort Myers.


Tiehesha Johnson is her neighbor a couple of buildings away. She's raising seven children. "Me being in this situation right here, it's a blessing to me," Johnson said.


According to Lending Tree, Fort Myers ranks #8 in the country for the most expensive rental rate hike in the 2011-2016 timespan. Nationally, average rent rose just $80 in that time, again compared to Fort Myers' $435.


"Southwest Florida is such an attractive place to live," said Fort Myers Housing Authority Director Marcus Goodson.Goodson explained how the prime real estate makes for good business for developers, a case of supply and demand. The demand is so strong, it's pushing prices higher than people can afford every time rates increase even more.


"Government has to be involved in this. Developers are in it to make money, and I'm not saying that's a bad thing," said Goodson, "The takeaway here is that times are tough, and I'm not sure the decision makers in Washington understand how difficult times are in the communities."



I keep hearing this over and over but nothing is being done about it. Despite 3 or 4 new apartment complexes being built the rents are very high for the pay scale in this area. Now even the aging apartment complexes are upping their rents to keep up with the brand new ones. My sister's friend saw her rent go up $120 a month when her lease was up. Not sure what the solution is: Rent control? Government intervention? More apartments built for middle income?

[mjp1234]

Its demand - if the rental owner can get more per month in rent, they will increase the rent. Remember there is a huge influx of retirement age people headed south, so "affordable" rent for Lee county natives will be a thing of the past.

[Mr Cape Coral]

Rent prices are a function of Supply and Demand. All across the country we have seen the demand for housing to rise and one of the consequences is the rental rates have also increased.
When there is a low inventory of housing, as has been the case for a couple of years, we must understand that it takes time for new construction to come into play.

New construction of Single Family homes is on the rise in the Cape Coral area. There are new homes in the $195,000 to $225,000. This will be part of taking demand off rental units and we will see the rental rates moderate.
Many people seeking rentals could well be served by purchasing a home instead of renting. Many times the monthly payment for owning is lower than renting.

There are lenders who will help new buyers get down payment assistance which increases the ability to own.
Builders have been building a lot of higher priced homes as that market has people who have the ability to buy them.

But, thankfully, we have builders that are building the more affordable homes.
There are also new construction of apartment and duplex units that will help take the pressure off the demand and help in the cost for renters.

[Florida Paradise]

I have been seasonally renting my 2/2 townhome in South Ft. myers since 2009. I started renting it "high season" for $1,600 a month. Today, 8 years later, my rent is still only $1,600 a month. I have had the same tenants for 6 years now... and I would rather have people I know and trust each winter than raising the rent and losing them. Howeve, this year I started taking a look at the rates for comparable units and was flabbergasted at the spike the last few years. Most places similar to mine are fetching up to $ $3,000 a month. WOW, where have I been? I am going to raise the rent a bit next season, cause along with rental increases, cost have really started to head North as well. Property taxes are double, HOA fees have surged, utilities have got up slightly. And I got hit with a 10 grand assessment in our association, due to a lack of major upgrade construction that was ignored during the real estate slump and subsequent implosion. Looks to me like Ft. Myers is heading back to the days of artificial inflated real estate values again. I feel bad for the folks who have to try and make a living down there.

[chiluvr1228]

This is my plan - when my lease is up I will buy a townhouse rather than continue to pay rent and the yearly increases.

[chiluvr1228]

Originally Posted by Florida Paradise

I have been seasonally renting my 2/2 townhome in South Ft. myers since 2009. I started renting it "high season" for $1,600 a month. Today, 8 years later, my rent is still only $1,600 a month. I have had the same tenants for 6 years now... and I would rather have people I know and trust each winter than raising the rent and losing them. Howeve, this year I started taking a look at the rates for comparable units and was flabbergasted at the spike the last few years. Most places similar to mine are fetching up to $ $3,000 a month. WOW, where have I been? I am going to raise the rent a bit next season, cause along with rental increases, cost have really started to head North as well. Property taxes are double, HOA fees have surged, utilities have got up slightly. And I got hit with a 10 grand assessment in our association, due to a lack of major upgrade construction that was ignored during the real estate slump and subsequent implosion. Looks to me like Ft. Myers is heading back to the days of artificial inflated real estate values again. I feel bad for the folks who have to try and make a living down there.

See this is what happens - you were getting $1600 a month but now you found out that you can rent your townhome for $3000 a month so you are seeing $$$$. The next landlord finds out that he can charge much more so he does and on and on it goes to where a single working person is priced right out of the area.


Granted in your case, I am assuming you are renting out your unit completely furnished because if you're not, then $3000 seems high to me. They are renting 2 bedroom, 2 bath condos where I am for $1200 right now in a gated community in a beautiful area of Fort Myers. Those are annual rentals however and I know most landlords like to take advantage of the snowbirds and hope to make that profit on the short term rental in case the unit stays empty the rest of the year or the owners live in them for a few months.


What do you do with your unit during "low" season?

[LifeIsGood01]

I bought a small home in North Fort Myers exactly a year ago. I'm so glad I did. I moved from Broward county because I couldn't afford to buy there or even rent there. Even my home value has gone up 20% in one year because investors are paying cash for small 2/1 homes that are above appraisal prices and renting them out. Some investors bought a home smaller than mine by 200 square feet and with no central AC and paid the same amount that I did a few houses down. I am guessing rents are around $900 around here because that's what one neighbor told me a recent home that was sold was renting for. When I bought my home the guy renting the small 3/1 was only paying $675 a month plus utilities.

When I first moved to Lee county I lived with a roommate in Cape Coral and he was renting a big modern half of a duplex on a canal 2/2 1200 sq feet with a 2 car garage for $800 plus utilities. You can't even find a one bedroom for that little in the Broward/ Fort Lauderdale area. Most of the foreclosures in Lee county are gone and have been sold to investors years ago and the investors who bought them and rented them out are now selling them. So the time of really low rents are going away as people realize that they can ask more and get more for their property.

[Florida Paradise]

Originally Posted by chiluvr1228

See this is what happens - you were getting $1600 a month but now you found out that you can rent your townhome for $3000 a month so you are seeing $$$$. The next landlord finds out that he can charge much more so he does and on and on it goes to where a single working person is priced right out of the area.


Granted in your case, I am assuming you are renting out your unit completely furnished because if you're not, then $3000 seems high to me. They are renting 2 bedroom, 2 bath condos where I am for $1200 right now in a gated community in a beautiful area of Fort Myers. Those are annual rentals however and I know most landlords like to take advantage of the snowbirds and hope to make that profit on the short term rental in case the unit stays empty the rest of the year or the owners live in them for a few months.


What do you do with your unit during "low" season?

See you assumed I would want to raise my rent to the $ 3000 grand mark, but you are completely wrong! I only started to look at different rents in the area because I wanted to see, if indeed, I could Take an SMALL increase to cover the HUGE increases it is costing me to own a place down there. To reiterate, I never in 8 years even raised the rent by $50. I will be raising it a mere $100 a month for 2018.

And for your info, the rents one gets annually and seasonally are two different things. I don't think that by having a higher rent for someone using your condo for three prime months, is taking advantage of snowbirds. The snowbirds who rent, don't take or have to incur the expenses to own a place down there. They come down, enjoy the weather and leave. I still have mortgage, HOA fees, taxes, utilities, year round. HOA fees alone... without my mortgage, are almost $500 a month. My "snowbirds" don't even generate enough rent to cover my HOA fees for one year, so yea, I am not taking advantage. They get a premium townhome in an awesome, safe location, included in the rent, premium cable, internet, pool, ands beautifully decorated and appointed. They would pay more a month if they stayed in a 3 star hotel.

Now I don't want to come across as crying with a loaf of bread, I chose to buy down there, incur the cost completely on my own and I try and use the place when my winter tenants are not there, which is probably a few weeks per year. I do feel bad for the residents that can not find affordable housing, but in the same, no one who owns a place, whether for vacation/seasonal or owning as a landlord for an annual renting period, can afford to rent their places out for significantly less than what it costs to own them for very long. Oh and I don't rent during low season, cause there isn't anyone to rent to.

[chiluvr1228]

I certainly didn't mean to offend you. You are probably one of the few landlords who doesn't try to take advantage of his renters. Thank you for that.

[Compression]

Originally Posted by chiluvr1228

This is my plan - when my lease is up I will buy a townhouse rather than continue to pay rent and the yearly increases.

There is NO escaping yearly increases.......other than "escaping" to an area where the COLA is lower. Even then, you're just lowering the starting point, but eventually.......

Buy, rent, whichever, whatever.

Directly, or indirectly the increases imposed by the market will be borne by all.

There's no way around it. There are only means by which to minimize the impact to a level acceptable to the individual.

Single folk have the big advantage, when it comes to minimizing.


CN