The Obama administration has entertained many solutions to the housing problem.  One idea that the administration has been considering is a plan to reduce the number of foreclosures on the market is to clean up the homes and  lease the properties to tenants.   The U.S. Government would encourage banks to co-ordinate with property manangers and in order effectly have the excess inventory reduce.

On the surface the idea appears to be a good one.   However, if you are a landlord and you own rental properities ,would you be competing against the banks?

And would this cause rental prices to go down?  Perhaps in some areas it would have an impact. However, one thing is certain  many vacant housese can cause problems and can me a potential magnet for crime.  And the more foreclosed and vacant homes in an area cause home values to drop. It is estimated that one foreclosure had 9%  negative impact on home values.

Some ares in Miami-Dade could benefit from some kind of program , areas like Homestead where many of the properties for sale are foreclosed or short sales.

Areas like Coral Gables , South Miami, Coconut Grove and other areas close by have their share of forecloses ,however, this program would not have that much of an impact because the percentages of foreclosures and short sales are to low. It may even work in areas of downtown Miami.

Meanwhile, investors are still coming in to the market to buy foreclosures and short sales will help stabalize the many differert real esate markets over the long run.

What is interesting to note is the unemployment rate in  Southeast Florida is just over  13%  and rental prices have been increasing.   Great if you are a landlord bad if you are tenant.