For the last few years, the owners/landlords and investors of properties have been taking lots of hits. With higher cost on insurance, maintenance and repairs, taxes, and even utilities it has been hard to maintain the ROI on your investment. Well, times have changed finally. With the uncertainty of the pandemic waning and the demands growing in most market, this is the time to catch up for all the years. Property owners need to monitor that renewal rates are raised to the appropriate amount. If you see the standard $50-$100 rental increase request from your property manager, find out if an analysis of area rents have been done correctly! Our market in the Tampa Bay area has seen increases of around 24% year or year! Units that were renting for $800-$900 are now going for $1050-$1200.
Therefore, check your market rents and make sure you are recouping your ROI. The conditions of great demand, low inventory, and generational shifts from millennials and baby boomers have created a convergence of bidding for rental properties! And let us not forget about the pandemic! With remote working and zoom meetings, the rental market in second tier cities have skyrocket!
Some people think that rents are too high. Yes, the market will eventually even out. I rather come down from a high rental rate by a little than be stuck in a lower rental rate with uncertainty of if I can raise the rent. Carpe Diem!
As with many areas in the United States, rental demand continues to climb in the Tampa area. The latest data from the Federal Reserve suggests that now is a great time to be a property owner since during the last three months of 2015 property owners’ rental income amounted to around 4.3 percent of the U.S. national income. Meanwhile, key takeaways from the “Emerging Trends in Real Estate” report published by the Urban Land Institute and pwc has us looking forward to successful investments for properly managed rental assets.
• Prospects for the multifamily rental sector still rank “well” for 2016.
• Due to the size of generation Y, demand for both rentals and ownership housing is poised to expand.
• Investment strategy for single-family home rentals is changing from the “flip” strategy to becoming operating businesses, as more people opt to rent by choice rather than necessity.
• Investment prospects for single-family homes rank “fair” for 2016
• Some older home renters are opting for luxury rentals.
• Domestic and global capital continues to flow into the U.S. real estate market.
• “The industry is trending toward more intensively active management…”
• Interest rates will continue to rise.
• “The Supreme Court has affirmed that local communities can take legal action to address disparities in housing, even if they are the unintentional result of actions rather than conscious discrimination.”
• According to reports by ApartmentList.com, rent in Florida is increasing at a higher rate than the national average.
• HomeVestors and Local Market Monitor have ranked St. Pete -Tampa one of the top ten areas in the United States for real estate investing.
• Millennial populations tend to rent for longer periods than did their parent and they add to the overall rental demand.
What if my rental is vacant?
Selecting the right tenant for your rental is a critical first step toward maintaining the value of your investment property. Qualified reliable tenants play a significant role in protecting against undue deterioration.
If your rental has been on the market for a significant amount of time, consider talking with All County Tampa Bay Property Management about what changes can be made to decrease the amount of time it takes to find a qualified tenant. While every situation varies, there is a short list of frequently cited improvements that can often lead to more rental applications.
• Give it some curb appeal. Spruce up the yard or to trim the trees and bushes. A freshly power washed driveway can also make a big difference.
• Clean the carpets. A professionally steamed and shampooed carpet can make a rental feel like new again!
• Add some paint. A little bit of outdoor and interior paint can go a long way.
• Price it right! If your rental is drawing in the kinds of applicants that you are looking for, talk with your property manager to ensure that the asking monthly price is competitive and compares to other similar properties in your area and that are relatively the same age.
All County Tampa Bay Property Management can help you get your property rent ready and help you take advantage of the Tampa rental market. Call now to learn more about our annual management services and how our professional property managers can make a big difference to your bottom line.
It is important to be aware of changes to real property law and contract law. Perhaps what is more valuable is to have a lease reviewed by a lawyer who specializes in landlord/tenant law. Our management professionals always make use of a carefully worded Tampa, Florida lease agreement that has been reviewed by an attorney.
Recently, major changes have been made to landlord/tenant law in places like California, Wisconsin and other parts of the country, which has social media all abuzz. In an effort to equalize the position of property owners and their tenants, landlord/tenant law is constantly evolving and landlord’s rights and landlord’s responsibilities in Tampa Bay and elsewhere are constantly changing. For instance, prior to March of 2015 landlords in Wisconsin were obligated to make arrangements for storage of any personal property that belonged to an evicted tenant. To fulfill such an obligation, landlords in that area needed to notify the sheriff’s department, hire a bonded mover, and give notice to the evicted tenant. The revised law now allows a landlord to presume that property left behind and to deem it abandoned. There are exceptions to the rule, of course, and this is just one example of how estate law can and has evolved in places around the country.
The lessons that we can take from trending news topics like those out of Wisconsin make it clear that your property manager’s role goes way beyond simply filling unoccupied space. At All County Tampa Bay Property Management, we can proudly say that our expertise in tenant placement, lease execution and lease enforcement will help to protect your property investments for years to come.
In order to keep in line with the ever changing rules, we regularly update the Tampa Bay lease agreement. A well written lease allows All County Tampa Bay Property Management to enforce lease requirements, and in the case of an escalated issue, a well written lease could mean the difference between winning or losing a court case. Our leases are well written and tenants’ responsibilities are clearly defined. Tampa Bay property owners can entrust All County Tampa Bay to safeguard your property investment and allow you peace of mind!