Posts

Orlando Rental Trends | Rents Still On The Rise | Rental Property

Orlando Rental Trends: Rents Still On The Rise

/0 Comments/in /by

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.

Slowing Housing Market Trends: Good News For New Investors

Slowing Housing Market Trends: Good News For New Rental Investors

/0 Comments/in /by

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.

Manageable Amenities

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.

Will A Recession Affect Property Management In Winter Park

Will A Recession Affect Property Management In Winter Park?

/0 Comments/in /by

We’re hearing a lot of talk from economic experts recently, and many of them are starting to talk about the likelihood of a recession in the not-too-distant future. If you own, or are considering buying, residential rental property, you may be wondering how a recession might impact you and what changes you might need to make in property management to protect your investment. While the Great Recession that began in late 2007 was a painful blow to most property owners, if another recession does happen at this point, it’s far less likely to cause such massive upheaval in the real estate market. You can take some steps now to reduce your risk as a rental property owner.

Why The Great Recession Was An Exception

In short, bad mortgage practices were a major cause of the Great Recession. People were saddled with mortgages and rates they couldn’t afford, and the vetting process for income verification was sorely lacking. As the job market weakened, homeowners found themselves unable to continue paying those mortgages, and they had little to no equity to fall back on. Lenders and investors who purchased had purchased those loans also failed as an increasing number of homeowners defaulted, and property values plummeted. Since then, the mortgage industry has been more carefully regulated and homeowners, overall, have more equity.

Smart Property Management Practices To Adopt Now

Now is a good time to review and revise your tenant screening criteria. Establishing a fixed set of criteria for judging applications to rent your properties is a critical part of protecting yourself against discrimination claims, and it can also help you keep stable tenancies throughout a potential recession. Consider whether you need to adjust your minimum requirements for income, credit score, or length of employment, and whether it may be a good time to add situations where you may accept tenants with a co-signer, extra deposit, or increased rent.

Professional Property Management In Winter Park

Working with a professional property management firm for your residential rentals in Winter Park and the rest of the Orlando area can help you maintain a steady income, even if another recession does happen. The team at Belmont Management are highly experienced in residential property management, and we’ll work with you to stay legally compliant while protecting your investment and income, now, and in the future. Call or contact us online for a consultation.

 

Note: Please keep in mind that this is an overview of the important points, but by no means does it constitute a prediction of the economy, nor of the impacts it may have on the residential rental market.