Think South Florida renters are safe in this real estate environment? Think again.
Most times, when an apartment community is sold...the renter feels no difference. However, there are times (more and more in today's environment) when the renter could be evicted or lose your security deposit. For example, if your community is in receivership or foreclosure...the new owner more than likely will not have all the residents security deposits. The new company can't pay what it doesn't have...and the law is on their side (with the exception of NJ and DC). Most times, the company losing the property does not have the cash to pay the new company the security deposits, leaving the renter S.O.L. in most cases. The only other option is to sue the original owner for the money.
While I don't know if there is a 'list' of communities that are in this category, all renters should educate themselves on how to find the financial stability of the people or company that owns your apartment. Keep checking on the status as things could change from month-to-month. Another 'red-flag' is hearing that your apartment owner has filed for Chapter 11 Bankruptcy. While this is simply a 'reorganization' type of bankruptcy, it could mean that your security deposit is gone. You should contact the law office that is handling the owners bankruptcy and get your security deposit listed. I'm not sure if you can actually have it added if you are a current 'renter'...but if you recently moved out and haven't received the refund yet, you must get it added. Chapter 11 could also turn into a full liquidation bankruptcy as well. If that happens the owner might get someone to buy the property and you will not see any difference. On the other hand...the buyer might have different plans for the property and that might leave you with no apartment, sometimes leaving you with only a few weeks to move out.
The bottom line is to do some homework and it might save you money, time and a place to live. Being proactive will save you a lot of stress.
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