Bad tenants (Miami: low income, rental homes, insurance)

[tankhead]

Given that wages in Miami are lower than average for a big city, given that there is a huge income gap, & given that rents are high, one would think that there would be an above average amount of bad tenants.

My perception is:
low wages + high rents = bad tenants

Am I wrong?

Is there a big problem in Miami with tenants not paying rent on time or at all or destroying the place before getting evicted, etc.?

If so, how big is the problem?

[ElGuito]

I am not a rental property owner (yet) also not a Realtor or Rental Management, but I've have some experience in this rental/leasing thing in Miami.
The scenario You present is very likely due to owners of a Condominium property, who by being the owners think of themselves as experts in rental agreements and proceedings, and so clever to save themselves the Realtor fees.
Of course, anyone can do the credit and background checks, draft a legal and authenticated rental agreement (1 year) and inspect, randomly with previous notice, the property.
But many owners bypass that, because they are "smart" and "save huge amounts" doing it the easy way.
Most buildings have an Association which adds to the requirements (yes more expense)
The Security Deposits are high.
And, if I understand it right, tenants who destroy the property will be prosecuted.

[MiamiInvestor]

Condos do a pretty good job of sifting through the rift raft. Most places require first, last, security, which is equivalent to 3 month's rent. Some places also have a security deposit for the building itself (ie common areas), pets, application fees, etc that total to 4 months rent. The interview, credit, and background check are also pretty effective.

In places outside of Miami, it may be different.

[tallrick]

I have owned homes to rent and know a few people who still do. The eviction game is played to lower rents. Tenants get in, put a deposit and pay for a few months, then pay late and eventually none at all. Savy tenants know how to play the court system to get evictions to last three months or more. Then after a few months living free they often high tail out and disappear. Another problem they have had is tenants who pay every month but have an "indoor garden". They get busted and the county swoops in to condemn the place and extort money from the owner. Of course there are also the pigs and scrappers who destroy properties. Another friend lives in Dothan Alabama and he has a lot less troubles and earns more money despite rents 1/2 or 1/3 of what you get in Miami.

Miami landlords are trapped with sky high property tax and insurance rates. They often neglect properties and tenants leave behind every piece of junk they don't want to move. You can almost always find the rental homes by the shabby appearance and run down yards. Eventually they do a makeover and sell to another sucker when the bubble reinflates.

[angelscorpio]

I don't see why people tend to associate lower wage=bad people. It all depends on your education even if the environment was precarious when been raised. Renting was a dead certain experience in general in despite their low income. It was about a newlywed couple making a debut as new renters. They were living stuffed in mom's house as Fibber McGee's closet, so they saw renting as a way of taking a bit of fresh air. Even though they were pretty demanding on the the first three months and made me spend some money on fixing some stuffs; however, I interpreted this as a positive sign. They were very conscientious about paying on time and the right amount for services consumed. I perceived them as they were paying rent I was their little slave, but I said: "Umm come on, is their first time renting".

The last months they were very calmed and adapted even though. They took some dishes and cushions for them even though at the end(furniture was included), but it wasn't a big deal. I think I was lucky to find them. The house was left in good conditions. My second tenants were found by my realtor and he did a good job. The second tenants agreed upon the new price (I raised) but wanted me to carry forward the internet in the rent price, but we didn't agree on that. In general it all depends on people background. I do have heard of tenants with succulent wages and being total jerks.

[Fl1150]

Originally Posted by angelscorpio

I don't see why people tend to associate lower wage=bad people. It all depends on your education even if the environment was precarious when been raised. Renting was a dead certain experience in general in despite their low income. It was about a newlywed couple making a debut as new renters. They were living stuffed in mom's house as Fibber McGee's closet, so they saw renting as a way of taking a bit of fresh air. Even though they were pretty demanding on the the first three months and made me spend some money on fixing some stuffs; however, I interpreted this as a positive sign. They were very conscientious about paying on time and the right amount for services consumed. I perceived them as they were paying rent I was their little slave, but I said: "Umm come on, is their first time renting".

The last months they were very calmed and adapted even though. They took some dishes and cushions for them even though at the end(furniture was included), but it wasn't a big deal. I think I was lucky to find them. The house was left in good conditions. My second tenants were found by my realtor and he did a good job. The second tenants agreed upon the new price (I raised) but wanted me to carry forward the internet in the rent price, but we didn't agree on that. In general it all depends on people background. I do have heard of tenants with succulent wages and being total jerks.

Exactly.

[MiamiKoala]

i've been a landlord for years and have experienced both spectrums high income tenants & low income tenants. I hope i don't jinx myself but my low income property (little havana) tenants have always paid rent on time (within 1-3days) and even early. I take tenants mostly by referral and try to NEVER use craiglist. I screen heavily over the phone before i schedule a viewing and never rent to anyone who does not have the complete first month and deposit. If they don't have enough money to move in they will never pay on time and will most likely default. it can also sometimes mean their current landord will not be returning deposit or they lived out the deposit (both are red flags). My low income tenants have never destroyed my property.

For my high income property (coral gables) that only high income tenants can afford, i ALWAYS use a realtor, background check, employment veryification, credit check, reference letters, bank statements, ect. High income tenants have always paid on time, never destroyed my property but are usually more demanding (as they should be for what they are paying)

Setting the tone with all income level tenants is very important and if you are a good landlord that answers calls, fixes issues and maintains the property well, the income level should not matter as your tenants will respect you and your home.
If you are a slum lord, don't maintain your property and don't spend money on maintenance and repairs then your tenants won't respect you and won't take care of the property either.