New Miami-Dade County Legislation will Require Landlords to Provide a 60 Day Notice of Rent Hikes

Residential landlords in Miami-Dade County are now required to provide renters at least 60 days’ notice of rent increases of 5% or more, as renting in South Florida grow increasingly expensive.

The legislation was proposed by Commissioner Eileen Higgins and unanimously approved during the commission meeting on March 15th.

Throughout the country, renters are facing a massive rent spike by at least 50% and according to Miami-Dade County, they hope this legislation will help curb those numbers and make Miami more attractive to tenants.

This new legislation would apply to renters nearing the end of their contracts as well as those on month-to-month leases who are facing the 5% rent increase. Also in the new legislation is the notice on eviction time going from 30 to 60 days, including month-to-month leases that came from a 12-month lease.

According to a commissioner, landlords could bypass the new legislation by offering weekly leases. This new legislation can only be enforced in court.

Higgins stated during the meeting, “Thank you all for your understanding about how fair notice is the right thing to do, but not all landlords are doing the right thing. So, this requires them, if their mothers didn’t teach them to do the right thing.”

There are also 2 additional bills for rent control expected to be voted on by this summer, Tenant Bill of Rights and Rent Control. The tenant bill of rights would allow tenants to withhold rent for certain maintenance issues that the landlords haven’t repaired. Landlords would also be required to provide renters with information about their rental rights for state and county laws.

If approved the Rent Control legislation would put a cap on rent increases for 12 months. There would be many hurdles with this legislation that involved multiple votes by commissioners, the mayor, and Miami-Dade citizens.

Wynwood 25 Begins Pre-Leasing; Pricing & Info

The Related Group and East End Capital are close to delivering Wynwood 25 – the first large-scale mixed-use property in the Wynwood neighborhood. The uber-chic development, situated between NW 24th and 25th Streets and immediately west of NW 2nd Avenue, is comprised of 289 studio, one-, two-, and three-bedroom apartments plus 30,000 square feet of ground-floor retail.  Pre-leasing has officially begun with prices ranging from the low $1,400s for studios to the low $4,000s for its three-bedroom apartments. Move-ins are expected to begin by May.

The units at Wynwood 25 feature custom Italian kitchens and bathrooms, walk-in closets, full-sized washers and dryers, and expansive floor-to-ceiling glass windows with views of Miami Beach, the Design District, and Downtown. The residences also have smart-home technology installed throughout, including Latch automatic locks and Lutron smart light technology.

A highly curated set of on-site amenities will also be available to Wynwood 25 residents, including an expansive rooftop terrace with resort-style pool, a cutting-edge fitness center with a spin and yoga room, a first-class pet spa, large grilling area, 12,000-square-foot courtyard, a covered outdoor conference center, and an outdoor movie theater. The property will also showcase a museum-quality art collection featuring new and established contemporary artists, including a site-specific work from world-renowned muralist EL MAC on the east façade. Miami-based artist Typoe will also complete a large-scale mural along the paseo wall.

“Wynwood is one of the most dynamic areas in all of South Florida. The neighborhood has earned a reputation as the city’s epicenter for culture and entertainment and as a place where innovative thinkers come together to create new ideas and propel the city forward,” said Jon Paul Pérez, VP at Related. “Our goal was to create a property that tapped into this disruptive energy, and I couldn’t be happier with where we are today. It’s been a pleasure to work alongside the East End Capital team to bring about the next step in Wynwood’s evolution.”

In achieving their vision, the Wynwood 25 team partnered with industry-leading design talent, including the internationally-acclaimed architecture firm Kobi Karp Architecture, the award-winning interior design firm Meshberg Group, and the renowned Miami-based landscape design firm Naturficial.

A First Look at Panorama Tower

I recently had the pleasure of attending a group tour of the 49th floor at Panorama Tower: the 85-story mammoth development located at 1101 Brickell Avenue, encompassing a newly opened luxury rental community, along with (eventually) hotel, retail, and office space. Given that the building received its first TCO (temporary certificate of occupancy) only a few days prior, I was told that it was a special VIP treat to get a ride up the elevator and actually view rental units in person. While a construction manager escorted us to the appropriate floor, the leasing specialists delighted in no longer needing to don hardhats and work boots to visit the tower, also noting that air conditioning was a brand new addition.

Even completely empty, the 2-story lobby felt every bit as grand as it should in a building of this magnitude, as did the enormous porte-cochere. The elevator ride to 49 was amazingly quick. The construction manager beamed with pride while he praised the elevator’s security features and explained that guests must be granted specific access in order to get anywhere in the building. While I can’t speak for the other sections of the building, the elevator lobby we used to access floor 49 housed a total of 8 high-speed elevators. According to the floor plan map in the brochure, floors 23 through 51 (otherwise known as City Levels) offer only 1 and 2 bedroom residences – whereas floors 53 through 84 (the Sky Levels) offer 1, 2, and 3 bedroom units.

The 1 and 2 bedroom floorplans I viewed were surprisingly spacious. Whereas new construction condos in Brickell seem to trade living area for amenities, at Panorama, I found large living rooms, bedrooms, closets, and dens. Though kitchen islands were somewhat brief, overall kitchen storage seemed adequate, and the quality and colors of the finishes rival some of the pricier new buildings of greater downtown Miami. Floor to ceiling glass highlighted some breathtaking views of Biscayne Bay and Coconut Grove, and I couldn’t help but wonder how they’d look from the 85th floor.  The 868-foot tower is currently the tallest residential tower south of Manhattan, so views that high will stretch as far as the eye can see.

All in all, I was impressed by what I saw on the 49th floor of Panorama Tower (especially of the floor plans and views) and would be excited to see more. I was told that amenities will be opening over the next few weeks, including a pool on the East side of the building that will be shared with the onsite hotel, and a larger one on the Westside that will be exclusive to residents. Other amenities include a poolside cafe & bar, fitness center, spa, yoga & pilates studio, two social lounges, a “muse” room/music studio, three private movie theatres, private dining and entertainment rooms, children’s playroom, personal wine lockers, billiards room, onsite pet daycare/grooming/boarding, and a cyber cafe/coffee bar.

The leasing specialist mentioned at the end of our tour that pricing will be going up next week, but at the time of this writing, the most affordable unit available is a 1 bed plus den, 1.5 bath residence on the 30th floor, featuring city views and 1,161 square feet for $2,856 per month. The most affordable unit on the water-facing side of the building is a 1 bed plus den, 1.5 bath residence for only $2,912 per month, with 1,142 square feet and located on the 34th floor. I was also told that previously scheduled move-ins were just beginning, and that depending on the unit, some of the earliest available move-ins going forward would be mid-July. To learn more about renting a luxury apartment at Panorama Tower, contact info@miamicondoinvestments.com or call 305-428-3860.

Panorama Tower Parts Ways With General Contractor Mid-Construction

image via Goldendusk Photography

Panorama Tower and Tutor Perini have officially parted ways, according to workmen on the site. Rumors had been swirling for weeks prior that there had been a problem with property damage after Hurricane Irma and that the proper insurance was not in place, causing upwards of $40 million in damage that was not covered by the policies that were in place.

The tower is still slated to open the first 48 floors in January, but there is no update on when the upper floors will become available, according to the leasing office. Many locals had reported that windows and doors from the project flew onto Brickell Avenue and into the pool at the neighboring Plaza at Brickell during the hurricane. That would mean that the building likely also sustained immense flooding from the affected units down, causing costly damage.

According to people on the site, FECR intends to complete the project itself rather than seeking out another General Contractor. In my opinion, this is for the best considering the fact that Mr. Hollo got his start as a successful contractor.

Why Panorama Tower And Solitair Will Affect The Brickell Real Estate Market… And Why They Won’t

It is hard to ignore the fact that Panorama Tower and Solitair Brickell are going to throw a wrench into Brickell’s typically lucrative condo market. Panorama Tower is adorned with a huge banner, boasting its status as the tallest tower in the South and Solitair unapologetically sprung out of nowhere, blocking the north-facing views of all of the unsuspecting buyers at Brickell Heights West. But these qualities actually have very little to do with the reason they will disrupt the rental market, at least for awhile.

Miami’s Fascination With “New”

From a marketing perspective, Panorama Tower and Solitaire Brickell have the upper hand since they’re the newest buildings in town… even if they are only a few weeks newer. The process happens quickly in Miami. We are already receiving significantly fewer information requests for buildings like SLS Brickell and The Bond, even though both buildings are effectively brand-new. In their place are people requesting information on 1010 Brickell, ECHO Brickell and SLS Lux… all of which are still preparing to be Brickell’s new newest new building.

Supply vs Demand

It’s the oldest rule in the investor’s handbook… supply vs demand, and we are about to see it in action. Between Solitair Brickell and Panorama Tower, we are going to see over 1,200 new options come available for the same number of new tenants who move to the area each month. That’s a flood.

Pair the flood of new inventory with Miami’s fascination with new things and you’ll start to see the writing on the wall.

Apartment Buildings Hate Vacancy

It is the #1 enemy of any rental investor… VACANCY. Ack! And could you imagine the pain of having an entire vacant building? To be clear, this is not the time to waltz into the rental buildings offering pennies on the dollar for a lease. The rental buildings price their inventory very carefully and offer attractive move-in incentives in lieu of lower rent.

Why This Is Not Horrible News For Rental Investors

Will there be an inventory glut? Yes. Will it pass? Yes.

The beauty of rental buildings is that they seek a rapid initial lease-up, so their investment is operating to the best of its ability. But once they achieve the sought-after initial lease-up, the buildings integrate into the normal neighborhood market, serving the procrastinating crowd (who needs to move in this week and doesn’t mind paying a little extra on a monthly basis in exchange for lower move-in funds). The condo market goes back to normal.

It is my advice that condo owners whose units are coming available should choose a new tenant before these buildings open, else you will have several months of a dry spell. Next year will be more balanced though.

Prices And Deposit Amounts For Panorama Tower And Solitair Brickell

Brickell’s rental market is about to get a lot more interesting. Just as the inventory at the new towers that have opened this year begins to be absorbed, two new rental towers are preparing to open, bringing over 1,200 new apartments to the market. We have fielded questions about Panorama Tower and Solitair Brickell for months, and finally have some solid details about what will be offered…

Panorama Tower

Panorama Tower, the tallest tower in Florida, is slated to open in January, but pre-leasing is already underway. The prices of the 868 foot tower are a bit higher than comparable towers nearby, but the move-in terms are far less expensive.

Deposits are only a half month’s rent, a sharp contrast to the full month that is expected when renting a condo. Approval is also granted within 2 business days rather than the 10-30 days that we commonly see in condo developments.

Prices start at $2,500/month for a one bedroom plus den with 1,100-1,200 square feet. Two bedrooms range from $2,800-$3,000/month and three bedrooms are 2,100 square feet and start at $6,000/month. The developer has been heavily marketing the project already for months with their “Brickellista” campaign, and 80 of the apartments have already been pre-leased.

Solitair Brickell

Seemingly popping up out of nowhere between Brickell Heights West and Brickell City Centre, ZOM’s 50-story/438-unit Solitair Brickell is preparing to open in November. Initially, the monthly prices will be discounted since the building will still be under construction, and the prices are very reasonable!

Studios will range from $1,600/month up to $1,900/month, one bedrooms from $1,850/month to $2,755/month, and two bedrooms from $2,500/month to $3,000/month. This project is also offering a 48 hour approval, and their security deposits are $350 for studios, $500 for one bedrooms and $700 for two bedrooms. They have just released their inventory, so don’t yet have enough pre-leases to give a percentage, but we expect to see the building fill quickly with prices and terms like these.

If you would like more information or a tour of the buildings, just let us know.

Filling Station Lofts Offers 2 Months Free On A 2 Year Lease

The Arts & Entertainment District’s Filling Station Lofts is pulling out the big guns in order to lure long-term tenants. As their Summer Special, they are offering two months’ of free rent to those who sign a two year lease in the building.

To be clear, this does not mean that new residents will simply pay their security deposit and receive keys with no additional money due for 60 days. When buildings offer free rent, the cost of the month’s rent is broken down by however many months are in the lease contract. That broken-down amount is offered as a discount on each monthly rental payment.

So, let’s say you sign a two year lease for $3,500/month. Your discount is $7,000, divided by 24 months. That works out to $292/month, so your monthly rental payment is $3,208.

The Filling Station is a very unique building, offering true industrial New York-style loft units. They can be used as live/work spaces or purely residential. The lofts have 18 foot ceilings and views of the Downtown Miami skyline, or views of Midtown/Wynwood. Pets welcome up to 60 pounds.

Available inventory and prices change frequently, so let us know if you are interested.

Miami’s Rental Market Is In Decline, About To Be Flooded. What Does This Mean For You?

The rental market in the Downtown Miami area is in for a jolt, according to an inventory report from the Downtown Development Authority. Many people expected that rental prices would begin to decline in 2017 as the new luxury condo buildings begin to open. As of the third quarter of 2016, the prices were already beginning to decline after buildings such as The Bond at Brickell and SLS Brickell began to open, flooding the market with new options for prospective tenants.

What many people did not see was the influx of new rental buildings that are going to start being delivered in 2017. A few have already come to market, but 2017 promises a whole new array of choices for tenants. Landlords are fervently trying to keep their tenants if leases are coming up for renewal, but many of the options are too good to pass up. In 2016, we saw 3,748 new condo units come to the market and 1,038 additional units in rental-only buildings. 2017 will flip that number, with 2,774 new condo options and 3,575 new units in rental-only buildings.

What to do if you are a tenant?

Don’t be greedy. While the market is in decline, the condos for rent in Miami are not going to rent for fire-sale prices. Yes, you may have more leeway in negotiation than once before with condo units, rental-only buildings typically do not negotiate their prices. Rather, they are pre-set at the beginning of each day based upon an algorithm in their computer software.

A quick move-in is worth a lot. If you can offer to move-in as quickly as possible, you will have more negotiation power than if you are shopping several months in advance. I always say that the sweet spot between the contract date and the move-in date is 3 weeks. That gives everyone enough time to get their paperwork together and applications completed. Building applications commonly take 2 full weeks in condo developments. Rental-only developments are commonly quicker, so are a good option if you get in a pinch and need to move even more quickly.

Have ONE agent to represent you. Make sure that person is someone who is well-informed about the market and what is available. That will prevent you from drowning yourself in options and becoming frustrated. Be open with your agent about what features you like and what features you are disinterested in. Let your agent take you to rental developments as well. Many times, we know ahead of time what the availability and rough price ranges are at the rental developments.

What to do if you are a landlord?

If you currently have a good tenant, entice them to stay and treat them well.

Don’t panic, but understand the monetary value of each month of vacancy. Price your available rental on the market as quickly as possible and with a firm that will give you the most exposure.

When reviewing offers, consider reductions based upon the risk of a full month of vacancy rather than holding onto the idea that your condo will earn as much this year as it did in years past. It won’t.  If you have a unit that was previously earning $3,000/month and you receive a quick-move in offer for $2,750/month, it would be a good business decision to accept. Otherwise, you could be stuck accepting far less in contract value on top of the $3,000 expense of having the unit vacant for a month.

Negotiate with people who lowball. Run your numbers and decide what is the lowest price you can accept based upon available options for the tenant and the amount of vacancy that you are already into. Not that you will always have to accept that lowest price, but you know how much room you really have for negotiation.

Remember that just like market storms that we have weathered in the past, this one will blow over. The condos will still be beautiful and in-demand afterward. If you need to sell, then sell. Otherwise just be patient until the inventory is absorbed.

Panorama Begins Marketing For Their 821 Rental Units That Are Coming To Brickell

Panorama Pool Deck

Construction is well underway and Panorama Tower is rising quickly into the skyline, soon to surpass the Four Seasons as the tallest building in Miami. Although the building is not scheduled for completion until the end of the next year, the developer has begun marketing the rental units.

When it is finished, Panorama will reach 83 stories tall with 821 rental apartments. That’s an awful lot of inventory when we are also looking at the new condo developments coming to market in the area with their rental offerings.

One thing that I really love about the building is the size of the plans. The one-bedroom units are 1,150 square feet and there are 3 bedroom plans that are over 2,000 square feet. In a neighborhood where one-bedroom units are typically 700-800 square feet and two bedrooms are typically 1,100-1,200 square feet, the layouts at Panorama are very generous.

The building will have a pool deck with dining and bars on the 22nd level along with 3 private theaters, a pet boarding facility/doggie daycare and even a recording studio. For some reason, they’re also bringing in a cyber cafe. The cyber cafe seemed odd to me. I haven’t seen a cybercafe since the early 2000’s when people actually had to go dock up to a computer to surf the internet. Now we just surf the internet on our phones as we’re walking down the street. Hopefully, that will be switched to a kids’ playroom before opening day. I’ve heard a ton of people requesting playrooms lately, but not a cyber-cafe.

It is still far too early to be able to predict what the pricing will be for these apartments. A lot can happen over the course of a year and there is also a lot of inventory coming to market in the next few months. We’ll keep our eye on things and report back once we know more. Until then, renderings:

Lobby

Panorama Interiors

Panorama Interiors and Views

Panorama Doggie Daycare

Panorama Private Theater

Private Recording Studio

Club Room

Dining Room and Wine Lounge

Staffed Fitness Center With Classes

Cyber Cafe From Y2K That Should Be a Kids’ Playroom

UPDATED: SLS Brickell Rentals Becoming Available Starting At $1,900/Month

Closings are currently under way at SLS Brickell and the competition for qualified tenants is already picking up. We don’t yet have a solid date that the properties will be move-in ready as many were sold decorator-ready.

For those who are new to Miami real estate, decorator ready means that the condo is delivered without flooring, light fixtures, window treatments and the walls are delivered with primer, ready for the topcoat. These are all added after the closing takes place but before the first residents move in. The process of laying the floors and adding the fixtures typically takes around a month, depending upon scheduling and permitting.

As of today, there are three active rental listings in the building. They are all three 1 bedroom listings and range from $2,600-$2,950 per month. As closings continue, we certainly expect to see more inventory. There are also investors who are planning to offer units for as low as $1,900/month for 1 bedrooms or $2,600 for 2 bedrooms, according to the investor’s representative. These units will become available for showings starting next week, but move-in dates are based upon the closing and flooring schedule, so stay tuned.

If you would like to be notified when the apartments become available, please send us a message and we will be sure you are the first to know.

UPDATE: We heard back from the investor’s representative, who informed us that the closings are scheduled for late December and the properties will be available starting in January.