When the housing market collapsed in South Florida, many homeowners who lost their homes became renters. And the region's blazing-hot rental market is making this a profitable place for part-time landlords.
Real estate website Zillow.com rates South Florida the second-best market in the country for landlords who don't rely on tenants for primary income. The average monthly profit is $515, right behind Oklahoma City at $536.
Zillow economist Skylar Olsen predicts pretty decent long-term profits for homeowners who turn their homes into rentals instead of selling them when they move.
"We're looking at short-term plus adding the fact that your home value's appreciating," says Olsen. "So if you're going to be a Mom-and-Pop landlord for the next six years, we would expect that you would make around $2,000 a month once you sold your home."
Since June of last year, residential rents in the tri-county area have jumped 5.8 percent, says Olsen. That's well above the national rate of 2.5 percent.
Zillow says the demand for rentals in South Florida is fueled partly by a housing crash that forced many homeowners into foreclosure and made them reluctant to buy again. Other factors are limited for-sale inventory due to underwater homes and millennials who have decided to put off buying a house for a while.