Buy a Miami condo.
Could the developer rent it back?

What is a developer leaseback?

In a developer leaseback, you purchase a residence and the developer, or the entity identified in the lease, rents it from you for a defined period. You own the property; the tenant receives the rights described in the lease. The purchase agreement and lease explain two connected parts of the transaction.

The appeal is easy to understand: you may be able to purchase now while arranging for another party to occupy or use the home during an initial period. That can be a conversation worth having if your own move to Miami is further down the road. Whether an arrangement fits your plans depends on its actual terms, costs and timing.

Why might a developer offer it?

A developer may seek continued use of a completed residence as a model, sales presentation space or for another agreed purpose. Ask what use is proposed for the exact unit and who will occupy it. A model-residence leaseback, a rental-management program and permission to rent a condo yourself are different arrangements; do not assume they offer the same rights or payment obligations.

How the process can work.

1. Review the purchase. Compare the residence, price, deposit schedule, closing requirements and building rules just as you would with another condo purchase.
2. Review the lease separately. Identify the tenant, payment terms, commencement conditions, duration, permitted use and responsibility for expenses.
3. Coordinate closing and possession. Confirm when ownership transfers, when the lease begins and when you can expect possession for your own use.
4. Plan the next stage. Decide how you would use or manage the residence after the lease ends, subject to the condo’s rules and any financing restrictions.

This is a framework for asking questions, not a standard schedule used by every developer.

Does rent start on day one?

The relevant question is: day one of what? A reservation, contract signature, construction deposit, closing and lease commencement can occur at different times. The lease should identify its start date or the conditions that trigger it, along with the first payment due date.

Ask what happens if closing or occupancy is delayed, whether payments are monthly or follow another schedule, and whether any initial payment is subject to conditions. A marketing phrase should never replace the written payment provisions.

Rental payments and net cash flow are different.

A stated rental payment does not tell you what remains after ownership expenses. Your comparison should account for the costs you must pay, which can include association dues, property taxes, insurance, financing, repairs, utilities and assessments. Avoid counting the same cost twice if it is already included in a mortgage escrow payment.

The Consumer Financial Protection Bureau explains that a homeownership budget extends beyond mortgage principal and interest to items such as taxes, insurance and association fees. Read the CFPB’s homeownership budgeting guidance ↗

A useful starting comparison is rent received minus the owner-paid expenses for the same period. Then consider upfront purchase costs, unexpected expenses and the period after the lease ends. This is a budgeting exercise, not a promised return or a complete investment analysis. Your accountant can explain the tax treatment for your circumstances.

Ten questions to ask before committing.

1. Who is the tenant? Ask for the exact legal entity responsible for payment and any separate security or guarantee documents.
2. When does the lease begin? Confirm commencement conditions and payment due dates.
3. How long does it last? Review extensions, renewal rights and whether either party can end it early.
4. What expenses remain yours? Allocate taxes, association charges, assessments, insurance, utilities, maintenance and repairs in writing.
5. How will the home be used? Discuss visitors, model-home use, wear, alterations and any subletting rights.
6. Can you use it personally? Confirm access and occupancy restrictions before planning visits.
7. What happens if payments stop? Have your attorney explain remedies and any limitations in the actual documents.
8. Will your lender accept the arrangement? Disclose the intended use and lease terms before relying on financing.
9. What happens at handover? Agree on possession, inspection, furnishings, condition, repair obligations and any holdover provisions.
10. What is your plan afterward? Compare personal use or future rental plans with building rules, ongoing costs and your budget.

Can buyers living outside the U.S. explore it?

If you live abroad, bring the leaseback arrangement into your property, financing and professional-advice discussions early. Ask a lender whether it can consider your borrower profile and the intended use of the specific condo. Coordinate ownership, tax reporting, payment logistics and document review with qualified advisers. This article does not establish eligibility or financing approval for any buyer.

How do you find out which residences offer it?

Leaseback opportunities may be limited to particular residences, and the available terms can change. Diego discusses specific projects and current developer materials directly with interested buyers so the conversation can focus on your budget, timeframe and ownership plans.

Start by sharing when you would want to use the property, whether you need financing and which Miami areas interest you. Diego can help you compare the real estate options and organize questions for the developer and your advisers. Independent counsel should review the purchase and lease before you commit.

No specific project, residence, price, rent amount, availability, guaranteed payment, profit or investment return is offered in this article. Written purchase and lease documents govern each arrangement. Diego provides real estate assistance, not legal, tax or lending advice.