The hazards of renting a property in this market are abundant! The most important thing to know is that every state is different and knowing the law in your state is very important. Local Realtors should be prepared to discuss this with prospective tenants/landlords and the information below applies to Florida.
* Know who the REAL owner of the property is. Understand the rates and terms before offering a deposit. There are so many scams today a prospective tenant should either work with a Realtor or do research on their own. Get the facts!
* The lease should cover expectations for showings. Have a clear understanding of expectations for showings and be prepared to abide by them.
* A lease normally survives the sale. If an owner desires to sale the property, the lease and terms are provided to the Realtor and/or buyer. Any purchase agreement is subject to those terms. All changes to the terms should be negotiated prior to closing. This will enable the tenant to negotiate any change in their lease with the current owner. It is the perfect time to discuss moving expenses, deposits on a new property, release of any existing deposits and any other terms important to the tenant/landlord.
* Short sales and foreclosures are abundant and if the tenant isn't working with a Realtor, they will want to know in advance if the owner is current with their lender. If not, realize that a foreclosure offers no Real protection. The tenant could find a notice to vacate posted with little notice, in which case the deposit is likely a total loss unless recovered in small claims court. Some lenders will allow the tenant notice or a "buy out" of the lease but remember, Nothing is predictable in those situations!
