Renter's Decision
Article Courtesy of FOX 29 - WFLX

 
Published: May 19, 2004

Renters in South Florida face an uncertain future as the trend toward condo conversions heats up. Big money companies are scooping up apartment buildings and giving renters the option of buying or leaving at the end of their lease.

For some, it's a chance to live the American dream. For others, a nightmare hunt for a new apartment and the source of rental insecurity.  Kelly Robinson and Kevin Strope had just settled into their West Palm apartment when they began hearing nervous chatter.

"We heard rumors that they were gonna put the place up for sale and make it condos, and a month and a half later we got the fliers.  That's what they did."

A banner bearing the new name, Milano Luxury Residences, now covers the old name, St. Andrews. Kelly and Kevin don't want to buy so...

"We have to find a new place to live.. that means starting up all over again."

Renters in the more than 200 other apartments at Milano face the same decision. This  is  just one of many condos undergoing conversion.

Renovations are nearly complete at Flagler Point, formerly the Jefferson Apartments. Condo sales are brisk. As you can see, the back two buildings, the garden residence are completely sold out. Condo's are now selling from the 170's to the high  500 thousands.  For the units like this with a panaramic view of the intracoastal. Renters here, and at most other condo conversion properties, get first crack at buying their unit.

"They got a notice and offered their unit first, before it was offered to the public."

Here again, some are buying...

"Some people put marble in here, okay."

And others are moving on.

Consumer rights advocates want renters who are considering buying in a place like this to be aware of the deed restrictions you'll be required to follow as a condo owner.  The rules facing condo owners are different than for condo renters.

As a renter you are protected against sudden, special assessments and fines. The same is not true for owners, but owners get to enjoy a tax break and eventually a possible return on their investment. Another advantage of buying into a condo conversion.

"They can see what the view is going to be instead of imagining it. And see the amenities instead of sketches."

That high demand for an immediate product was evident when people camped out to buy converted apartments at the re-named village of Abacoa in Jupiter. Nearly 200 units sold in two and a half days.

This red hot trend is a double edge sword. An opportunity for those ready  to buy, but a source of insecurity for people like Kelly and Kevin, already concerned about their next rental.

"The same thing's gonna happen, and it happened so fast. It was like wildfire."

As a renter, be sure to ask your potential landlord if conversions are in the future and remember, an answer of no is no guarantee about the future.