Morris Massre is a Realtor with Fortune International Real Estate.

(Part Two of an analysis of renting opportunities in Miami. Part One can be read here.)

One thing I like about South Florida is the fact that even the dingiest of rentals still get good rental income. The market drives the price, and right now the market here is the best that I have ever seen it. Be advised, there are some who are gouging because they know nobody is buying except foreigners. Those are the landlords who end up getting hurt in the long run. And it’s not always their fault, either. Many are lured in by their Realtor’s promise of top dollar. As an agent myself, I find it is best not to focus on the amount of the rent so much as it is the tenant.

Always list at a fair and reasonable price. This will attract renters from everywhere, which will at times lead to a bidding war. Then you end up getting what you wanted in the first place. But don’t settle either. Do your research. Money is not everything. Go with the tenant who has the best credit, background, and rental history, even if you have to accept less rent. It’s worth it for the sake of your sanity. And always meet the prospective tenant and their family and get to know them. You will find out right away what kind of people they are. I like to see where and how they were living before, if possible. That’s always a good indication of how they will treat your property.

Which brings me to my next point. Those without experience leasing are going to be worried about what will come of the property when they rent. Will the tenant trash it, or stop paying? Well, it’s possible. Renting is like a stock; there is risk. But it’s not the end of the world either. You have to come to expect that not all is going to be well when you do get the property back. It’s just business, so accept it and move on. Besides, you are going to write off the repairs anyway. Under no circumstances should you get attached to any rental property. If so, you are doomed from the start.

If you are lucky enough to be employed and have a good income, but no deductions you should be looking into this now.  Your main objective should be in acquiring the right property, and by that I mean those in an area of high demand, good schools, great location, and excellent rental history. Section eight is not one of these.

So many people get suckered into buying and then leasing out in a Section eight neighborhood simply because the rent is guaranteed by the feds, but keep in mind that those same neighborhoods rarely increase in value and the program seems to attract high crime.

Weston, for instance, is a no brainer. You may pay a bit more, but it has all of the qualifications you should be looking for in an investment property. If it’s condos you like, you should be looking into downtown by Biscayne and Brickell, not the beach, believe it or not. Downtown attracts business people who want to rent. The beach attracts tourists and deadbeats who want to lounge in the sun all day. You will notice that beach condo owners have a tendency to be underwater with high vacancy rates, while downtown, it is just the opposite. And always check with the association to find out if all owners are current and how high the vacancy rate is, as well as if there are any rental restrictions. If so, don’t bother buying there. On many occasions you will find a great deal only to be let down by the high maintenance, because the building is empty and/or the association will not allow investors to rent the first year.

I have been seeing a lot of this here lately because for some reason a lot of condo commandos believe that a vacant condo with no dues coming in is better than a tenant who pays rent, and therefore, a landlord who pays maintenance fees. This is why so many condos are in foreclosure today down here. On the other hand, I tend to prefer townhouses and single family homes, especially those near a university. College kids tend to get a bad rap, but I have found that most are quite civil and always pay on time. Nova Southeastern and the University of Miami tends to attract a better tenant than say, Florida State. The quality of the school lends itself to the quality of the tenant. So don’t be afraid to rent to them. They do have money to pay the rent if that is what you are worried about because of their financial aid.

Remember, if you want to be a landlord, get into to it for all the right reasons and take advantage of the system that it affords you. What I like about South Florida is the fact that not only are you getting great rental rates right now, but as you wait for the market to come back, your property is going to increase in value and you are going to use the property as an excellent tax shelter.

If you bought at the right time and right price, there is no reason why your rental property here in South Florida will not go up in value. It’s the properties that investors and quick hitters bought during the boom that do not have a chance. Those folks should just continue to rent for as long as they can afford to and then short sell. That is a story for another time, but it’s not the kiss of death. You will get a second chance to prove yourself in the real estate world. South Florida has a way of bouncing back. Remember Miami Beach?