Demand doubles to rent single-family homes in Miami

Demand for renters looking at luxury single-family homes has more than douNew bled in South Florida since the coronavirus spread in South Florida in March, say Realtors.

Renters with kids coming from the northeast — Connecticut, Washington, D.C., Jersey and New York, in particular — are spending $2,000 to $35,000 per month on South Florida rentals.

Compass Vice President Carole Smith signed two leases for single-family homes in April 2019 and expects to sign four or five more by the end of April 2020.

Jessica Adams, global real estate adviser with ONE Sotheby’s International Realty, is seeing a similar trend. Adams, who listed zero homes for rent last year, placed three listings on the market in April and received two offers based on virtual tours.

The shift is largely due to COVID-19, Smith said. Common spaces in condo and rental buildings are shut to prevent the spread of the disease. And because access to buildings is now restricted, the number of condo listings has dropped.

The increasing demand for luxury single-family homes means, Smith said, “when their leases run out we are going to have buyers looking for single-family homes.”

Most families are signing 12-month leases.

Renters are drawn to Coconut Grove, Coral Gables and Pinecrest. “These are names people know,” Smith said. “These are where the schools are highly concentrated.”

These are also neighborhoods with larger homes — at least three bedrooms, and some as many as seven — with pools.

Rents typically run from $5,000 to $10,000 per month, Adams said. And, Smith said, no one is negotiating on rent.

“Everyone usually asked for rent cuts. Landlords would usually agree. But now it’s different. Renters are afraid they won’t get the home they want and want to sign the lease as quickly as possible,” Smith said.

But the broader market isn’t seeing the same boost, said Benjamin Gene, chief executive officer of property management for Keyes Property Management.

The number of 12-month leases his team signed in South Florida dipped from about 430 in March 2019 to about 338 in March 2020. The number of leases his team closed in April 2019 was about 233 — significantly higher than the 179 the company signed in April of this year.

“There are a number of tenants who are stuck where they are because of job loss,” Gene said. “And sometimes those renting can’t move to their new home because the existing tenants can’t move out. There’s a holding pattern.”

The majority of his clients are locals looking to rent more moderately sized houses of two to four bedrooms priced from $1,650 to $2,500 per month. A pool and gated-community location are top priorities.

Popular locations are Davie, Fort Lauderdale, Hollywood and Pembroke Pines in Broward; and Kendall and Hialeah in Miami-Dade. “Homes there are much more affordable,” Gene said.

Rebecca San Juan: 305.376.2160, @rebecca_sanjuan