Real Estate News

Miami-Dade, Broward rank below national average for rental revenues

AP

Amid collective groans over rising rents comes data that pegs South Florida below other regions in average returns on rental property investments.

According to a report by RealtyTrac, a service that aggregates national housing data, Miami-Dade and Broward County were below the nationwide average of 9.4 percent gross returns on single-family rental properties during 2016’s first quarter, which runs from Jan. 1 to March 31.

Owners of single-family rentals in Miami-Dade saw returns of 8.4 percent during the first quarter, while Broward County rental-property owners raked in a bit more, receiving a return of 9 percent.

“In spite of the fact that our rental rates are higher, on average, than the U.S. in general, our costs are higher than anywhere else in the nation, as well,” said Christopher Zoller, a broker at EWM Realty International.

During the the first quarter, the average three-bedroom single-family home in Miami-Dade fetched a monthly rent of $1,790, reflecting a 4.4 percent year-over-year change from 2015. Median single-family home sale prices also increased in 2016, by 10.9 percent compared to the previous year.

In Broward County, single-family rentals cost $1,907 per month, a 5.9 percent increase from 2015. Year over year, median single-family home sale prices increased, too, by 8.5 percent.

“It’s pretty simple that the cost of the single-family house is going faster than the appreciation of rental rates. We’re going to see a shrinkage in the gross profits,” Zoller said.

Follow Debora Lima on Twitter @dtdlima

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