Rental Rates Begin To Drop With Home Prices

CBS TV Miami reports:

If one were to describe house prices to falling rocks, then, it would be safe to say that rents in South Florida are dropping like boulders.

"We're just trying to stay competitive," said Frank Leonor of Design Place to CBS4 David Sutta.

After years of price increases, property managers like Leonor are doing the unheard of: offering not one, not two, but three months free rent to get you in the door.

"It's a drastic measure, but in today's economy, most people are on a tight budget, so we have to try to offer to balance out, try to offer them something that they can afford now," he added.

Design Place in Miami is just one of thousands of bargains appearing across South Florida.

"This listing has been available on the market for 3 months," explained Guillermo Puig of Mymiamipad.com; luxury buildings in Sunny Isles dropping in price by five to six hundred dollars.

He added, "The prices are coming down dramatically, I would say; and going like that once they have someone interested in that property, because they don't want them to leave."

For homeowners turned landlords, the market is squeezing them. They can't sell, and they now have to compete for tenants.

Aldo Rivera, who owns property, said, "Many people who are looking to rent a place have a lot of options, so they want to get a good deal."

The good deals landlords are cutting often don't come close to what the bills are.

"Oh, that kills me to write that $1150 check to pay up the difference," added Rivera.

However, renters should be cautious when renting from a private owner who are more likely to offer a better deal than a developer.

Puig said, "Lets say they go through a private owner and they foreclose on them, then you are at risk for being taken out of the apartment you rented and losing your deposit."