Here is a complete guide to rental property leasing services in South Florida.
What is a Lease Agreement?
A lease agreement is a contract between a tenant and landlord allowing the tenant to rent a property for a fixed period, e.g., 12 months. Are leasing and renting the same thing? No. Most people can’t differentiate between these two concepts, and they confuse the term renting for leasing and vice versa.
Today’s property owners’ guide will define leasing and illustrate the process for South Florida’s property investors and prospective residents. There are several rental properties for lease in South Florida that you might want to consider in Southern Miami and Fort Lauderdale.
Let’s discuss this further!
Difference between Lease and Rent in Property Investment
A lease is a long-term contract between a tenant and a landlord and may vary in duration depending on the tenant. One can have a 6-month or 2-year lease.
Tenants of commercial spaces usually lease for a longer duration e.g. 10 years, and have different kinds of agreements compared to the rental lease.
A rent, on the other hand, is a short-term contract, usually a 30-day period. The contract renews after the end of the period. The landlord can review the contract terms, and maybe raise the rent for the following month if the market conditions have shifted.
List of details included in a rental lease agreement
- Rent amount
- Property location address
- Responsibility of the landlord and tenant
- Span of the lease
- Repercussions of breach of the contract
There can be other information in an agreement depending on the parties involved. For example, pet and disturbance policies.
Types of rental leases
There are two major categories of lease types:
- Residential lease
- Commercial lease
A residential lease involves the tenant paying gross rent with no additional payments, mostly other than electricity and gas.
In Commercial lease contracts, the tenant and landlord can agree that the tenant receives additional payments like property tax and insurance premiums.
Types of Commercial rental leases:
- Single-net lease: the tenant pays rent plus property taxes.
- Double-net lease: tenant pays rent, property tax, plus insurance.
- Triple-net lease: tenant pays rent, taxes, insurance, and maintenance costs.
- Gross lease: tenant only pays rent as the landlord covers all other costs.
Commercial tenants lease a property over a longer duration, unlike residential tenants.
How to lease a rental property in South Florida
The South Florida housing market has been booming. Landlords have reported an increase in the lease rate of residential and commercial property by people from other parts of the state and other states.
Maybe you plan to move there in the future. It is straightforward to lease a rental property in South Florida cities. Top property managers like Threshold have a list of landlords looking to lease their properties. They will also help you through the leasing process and ensure you are settled in the unit satisfactorily.
Not sure what city to move to? No worries, they operate in popular cities like:
- Miami
- Broward
- Fort Lauderdale
- Hialeah
- Little Havana
These are just a few, you can always book a consultation with them for free and have a list of areas they operate in.
Threshold also has a variety of rental properties listed with them:
- Single-family rentals
- Multi-family rentals
- Duplexes
- Triplets
- Fourplexes
Processing the lease can take up to two days. The agreement is expected to be respected by both the landlord and tenant, so expect an inspection within the first few months of your stay.
Breach of lease contract
We have looked at the information contained in the lease contract. Not adhering to the agreement is a breach of contract and calls for legal intervention.
An example of a breach of contract is moving out before the end of the duration you agreed upon with your landlord. However, a few unique groups of people are protected from consequences in case they have to move out.
Protected groups in lease breach
- Military personnel: if they are summoned to duties that would last more than 90 days
- Victims of domestic abuse. They are protected in some states
- The elderly. Some states have the seniors protected in case their health is at stake, and they might require long-term care given away from home.
However, the protected groups also have to issue a notice to the landlord 30 days prior to vacating or as agreed between them.
Advantages of leasing over renting
To landlords: they are guaranteed a steady cash flow throughout the lease duration. Even when the real estate market depreciates, they will continue earning the same amount agreed upon.
To tenants: They are safe from sudden increase of rental prices like in standard 30- day renting where terms are renewed after every 30 days.
Disadvantages of leasing over renting
To landlords: They will miss out on an increase in revenue in case the market surges within the lease period as they are required to only charge what was agreed on.
To tenants: They will also miss on the decrease in rental prices if the property value depreciates in the overall real estate market.
Final thought on rental property leasing services in South Florida
It is advantageous leasing a property over renting especially if you plan on staying for a long duration in South Florida. Have a property management company already on the ground to guide you through your leasing journey.
They will handle the entire process. All you have to do is go through the terms of agreement keenly and pick that which will suit you.
Leasing rental property FAQs
How long is a lease?
A lease varies on the agreement between the landlord and tenant. They range between 6 months to 10 years. Some large companies however can lease a property e.g land for up to 100 years.
Is leasing short term or long term?
Long term. Leases bind
tenants to a property for a fixed period of up to 10 years before renewal.
Is leasing a property in South Florida worth it?
Yes, the increase in population in South Florida has seen a steady increase in activities in the area. Leasing a property to handle your business there is a good idea.
What is the longest duration of lease?
They can last up to 100 years before renewal of the contract. These very long leases are taken by large companies that plan to carry out their business in a particular region for a long time.
What is the difference between a lease and long-term renting?
Leasing terms can only be reviewed at the end of the agreed-upon duration While long-term renting terms are set to change after any set of 30-day duration.
