In December 2018, the Orlando Sentinel reported that home and apartment rentals in the Orlando metro area were rising significantly faster than the rest of the nation. An updated report from Zillow.com, which includes data through September 2019 show that this rental trend continues. It’s a unique opportunity to make a smart investment in residential rental property, if you make a realistic plan.
Choose The Right Property
Making a profitable investment in residential rental property starts with choosing the right property for your budget and for the market in the specific area where you’re looking to rent your property. Obviously, purchase price, location, and overall condition are key factors, but there are some less obvious considerations that can make or break a successful investment. Those marble countertops or that pool may seem like an attractive feature that will add value, but consider whether the rent that property will realistically command in its specific location will be adequate to pay for upkeep and repairs to such high-end features and finishes. In the case of a pool, you also need to consider the additional insurance costs. Think about what the community offers, and how that may affect rents. For example, a house in a desirable school district will likely command higher rent than one in a less desirable district. Are there great restaurants in walking distance?
Make A Realistic Budget
One common thread among successful rental property investors is that they set a realistic budget from the beginning. This budget needs to include not only mortgage, taxes, and insurance, but also the costs of maintenance and repair, ongoing management, marketing and tenant screening, and other business matters like collections, evictions, and other business overhead.
Professional Evaluation & Management
No matter how hot the Orlando rental trends, it’s a smart idea to get a professional evaluation before purchasing an investment property. Belmont Management Group offers its clients an in-depth analysis of a property’s rental potential, along with access to exclusive property listings not avail through the MLS, and comprehensive property management services that help each property give the best returns possible. Call or contact us online to learn more about how Belmont Management Group can help you purchase and manage a successful rental property portfolio.
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 rental trends or purchasing an investment property.