Home prices in the Orlando area have been steadily rising since 2012. New market trends have come into play recently, and a temporary decline in home prices presents a good opportunity for new investors in the residential rental market. One key to making a wise investment in rental property is choosing a home or homes that will attract good tenants, and make them want to stay in place long-term, while keeping your costs to a minimum. What should you consider before you purchase residential rental income property?
The Right Location For The Tenants You Want
Who are your ideal tenants? This will likely depend on several factors, including your purchase budget, but in general, most landlords want to see either steadily employed tenants, or those who have an adequate fixed income, such as retirees, to stay in the rental for the long term. You may need to consider whether your prospective purchase offers reasonable commute times to nearby business centers and easy access to public transit. Or you may need to think about how walkable the neighborhood is, and whether the school district is attractive to families with children.
A pool or hot tub and a huge lawn may sound like attractive amenities, and they may actually prove to be selling points to prospective renters in the right situation. In other circumstances, these amenities are liabilities that either you or your tenants will have to deal with, in terms of maintenance and water bills. It’s important to be aware of the rental market trends in the specific areas you’re considering.
Another example of keeping the amenities manageable is the choices of finishes and flooring in the home. Premium finishes typically require extra maintenance and may also require specialized, more costly cleaning products to maintain properly. If you’re planning a luxury rental and appropriate rents to maintain these kinds of extras, buy with confidence. If you’re in the market for a more “regular” rental, you may want to consider avoiding these kinds of extras.
Stay On Top Of Market Trends In Residential Rentals
By working with a professional property manager in the Orlando area, you can rest assured that your investment property will bring you the best returns possible. Belmont Management Group can help you with everything from marketing and legally compliant tenant screening to economical maintenance and repairs, and, if needed, evictions and collections. Call or contact us online to schedule a consultation and learn more about how our services save your time and increase your bottom line.
Note: Please keep in mind that this is mostly a summary of the important points, but by no means does it constitute or cover the entire topic of market trends or purchasing a residential rental property.