You’ve heard of trophy wives and perhaps trophy homes, but the newest trend in the trophy market is trophy rentals. There is an increasing number of people today who can afford to buy luxury homes in the upper stratosphere of the high-end market who are instead opting to rent uber-luxurious apartments, condos and homes. Why? That depends on the individual.
Some of these affluent renters want a temporary solution to their housing need. Renting gives them the flexibility to change their minds about neighborhood, building or apartment size. Others would rather invest their millions in the financial markets or business ventures than plunk it down on huge down payments and closing costs associated with purchases. Some are recent sellers of trophy homes who want to watch the market and wait to buy again when the market dips. In any case, these potential wealthy buyers are still able to have the lifestyle, amenities and address that they desire without tying up their fortunes in their primary residence.
As recently highlighted in the Wall Street Journal, cities such as New York, Miami, Los Angeles and San Francisco are all seeing a significant rise in the trophy rental market. Buildings such as the Millennium Tower in San Fran, Burton Way in Beverly Hills and New York by Gehry in Manhattan see rents ranging from $15,000 to $50,000 a month; homes in Miami on the beach can easily rent for $90,000 a month.
In addition, with an increasing demand and relatively low inventory, there is an emerging trend of rental offers for properties on the market. But whether you are renting, selling, buying or looking to rent a for-sale property, you should first consult with an experienced real estate attorney to navigate these increasingly complicated waters. For more information please contact Felix Nihamin & Associates, P.C. at 212-502-4868 ext. 302.