The Miami condo conversion has been booming in recent years, and there is every reason for realtors and developers alike to be enticed into this type of real estate investment. As a real estate broker planning on a rental conversion, your approach to tenants should mirror ardent sensitivity to the needs and concerns of the tenants.
There is no other moment that emotions run higher than at the time of announcing to tenants that the property is on its way to undergo a condo conversion. The seller, who happens to be the converter, and you as the broker of record should be engaged in the announcement that the property is being converted to condominiums. The announcement will certainly create worry among the tenants for many reasons, depending on their ages, length of stay within the community, and most importantly, their financial situation.
Your marketing firm will come up with the marketing strategy to list the condominium for sale to the general public in the Miami condo market. However, there are certain fundamental items that must be incorporated in the tenant sale’s package to help make it a point that they understand what is taking place.
Their first reaction tenants might feel is that that they are “getting kicked out. " Hence, a professional and humanely sensitive approach to address the tenants must realize two basic things—one, mitigate a mass exodus of renters and two, generate sales. This article proposes a checklist, shown below, to carry out these two basic things.
1. A letter from the apartment seller that formally announces the sale and advertising the merits of the converter.
2. A letter from the converter that comprehensively provides both guarantees and sales opportunities to the tenants.
3. A letter from the broker of record that draws round the procedures for the sales
4. A letter from an attorney that gives legal notice to the residents. This is usually required in the state of Florida and particularly, in Miami.
5. A price list
6. The budget of the Association
7. A fact sheet that discusses about condominium ownership in general and the lifestyle of that particular property.
8. The schedule for renovation that shows what will be done and when they will be carried out.
9. Reprints of advertisement that will be used to public announce the grand opening.
10. A chart that compares owning a condo and renting an apartment
11. Schedule for monthly payment including interest rate, initial capital, and so forth.
12. A brochure
Certainly, this list will be modified depending on particular circumstances, but nevertheless gives a general idea on what to include in your approach. The responsibility for these materials is negotiable between the broker and converter.
If the converter is experienced or has already been investing into Miami condo conversion, he or she may prefer to shoulder the responsibility for everything to do with the tenants. If this is the case, then it would be a big relief to the broker. As the broker, your focus must be on the management of on-site staffing and sales production.
Miami condo conversion of an initially rented property is normally not a game for general agents who have “site sitting" experience. This is for new homes agents who understand the difference between “sitting a model" and marketing a community.
Earl Juanico http://www.miamirealestateinc.com