Owning rental properties in the state of Florida can prove to be a very lucrative business. With many people opting to rent versus buy, at least initially, it opens the door to a wealth of income for investors. However, not every property owner is successful. Listed below are a few tips to improve your chances for investors in Florida
Property Management Company
Let’s face it, you have enough to do with regard to your rental properties and finding the right tenants can take up valuable time. Thankfully, there are companies that specialize in finding highly qualified individuals. For example, if you own a rental property in Gainesville, Florida, companies that specialize in property management in Gainesville, FL will do a background check, check your credit scores, and interview potential candidates prior to consulting with you.
Just like with the purchase of a home, people interested in a rental property want to know that everything is in good working order. An older home may have clogged pipes where the water pressure is low and outdated windows that cause higher than normal heating and cooling bills. Thankfully, you can have a full home inspection completed prior to listing the property to ensure that your rental property is competitive.
The location of your rental property is just as important as its condition. For instance, if it’s on a cul-de-sac in a desirable neighborhood, chances are good that you’ll have people lined up wanting to rent it. On the other hand, if it’s out in the boonies a long way away from schools, stores, and parks, while your property may look good, it may be harder to find tenants.
The Housing Market
The housing market has highs and lows. And, unfortunately during a buyer’s market, getting qualified tenants can become quite difficult, since they are looking to buy their own home versus renting. Unless you have a lot of property and money in reserve, this can leave you strapped for cash. You may also allow otherwise unqualified renters and this can be a dangerous and ultimately expensive practice, which is a poor choice for investors in Florida
Florida is one of several states that are experiencing a population explosion. This will benefit you in that, as people continue to move to the state, they will need places to live. Most people when they move to a new state want to live in the area for a bit prior to the actual purchase of a home. Purchasing a home in areas that people want to live in will provide dividends.
Cash Reserves for Repairs
While you may do a thorough inspection of the property prior to listing, repairs will need to be done somewhere down the road. In order to ensure that, when a tenant calls and needs something fixed, you are able to do it, you need to have money set aside in a separate account. This will allow you to continue to satisfy your tenants and keep your property occupied.
Know the Going Rates
If you opt-out of using a property management company to find tenants, you’ll need to do your research when it comes to the average rent for properties located in your area. If you list the property at too high a rate and price it out of most peoples’ price range, you’ll end up with a vacant dwelling. And, if you price the rent too low, you may attract the wrong people.
Is Property Worth It?
Perhaps one of the most overlooked aspects of buying a property for rent is whether the property is worth the investment. This is especially true for new landlords. You get excited about the first purchase and the prospect of making money. Unfortunately, there are many costs associated with owning a home. You have mortgage loans, taxes, insurance, management companies, and attorney fees and repairs.
Investing in property in Florida can provide additional income and financial stability. However, if you don’t buy in a good location and inspect the property ahead of time, you may end up drowning in debt.