Why Should I Purchase a Rental Property in Clearwater, FL
What makes Clearwater, FL a good place to invest in rental property and is it right for your strategy? Let’s look at some key data about the city and learn how a Clearwater, FL property manager can be a valuable asset before and after you make a purchase.
Next you want a property type that people are looking for. This can vary from market to market. Are there a lot of houses, apartments, etc. in the area? If the rental market is demanding 2-bedroom apartments and you have an expensive, large single-family home, you might have a harder time leasing the property.
Other important indicators of a good area to invest in include job and city growth trends. Do people move in and out or do they stay for many years? This could affect your turnover time. Let’s take a look at some detailed information about Clearwater, FL.
About Clearwater, FL
Look at any top-ten list of beaches in the US, and you will typically find Clearwater Beach listed. The city’s Gulf Coast beaches are some of the most beautiful with white sand and crystal-clear water. Tourism is a large part of the city’s economy, attracting worldwide visitors all year long. Clearwater has easy access to two major airports and several larger cities in the Tampa Bay area. There are many choices for public transportation including the Jolley Trolley, Clearwater Ferry, and PSTA (Pinellas Suncoast Transit Authority).
- Population: 112,794
- Cost of living is below the national average
- $45,631 Median household income
- #1 Beach in America - TripAdvisor Traveler’s Choice awards for beaches
- #2 best city to retire in
There is a high demand for rentals in Clearwater due to so many people choosing to retire in the area.
Real estate in Clearwater
- $208,200 average home value
- 9.4% appreciation in the last year
- 42.5% appreciation over the last 10 years
Keep in mind property near the beach is pricey. If you are looking at purchasing property for an Airbnb, Clearwater has strict regulations you will want to research first.
Economy and Industry
- 2.3% recent job growth
- 41% future job growth
The most common jobs in the area are in the education, retail, and accommodation industries. Tech Data, one of the world’s largest wholesale IT distributors, is a Fortune 500 company headquartered in Clearwater. Clearwater is also home to the Clearwater Coast Guard Air Station. Tourism is a major economic contributor in the city, and the downtown has been revitalized in recent years.
The long-term growth and high appreciation in Clearwater make it a great choice for investors. If this strategy helps you attain your goals, it may be worth looking for investment opportunities in this area.
How to Accurately Set Rent for my Clearwater, FL Rental Property
As an investor you want to set the rent rate at a level that is going to maximize your return and reduce vacancy time. It is important to look at several factors that can affect what rent you can expect to collect.
What should you research about Clearwater?
- Is the city growing?
- Are rents going up or down?
- What is the occupancy rate?
- What are the days on market?
- Are you renting the property during the prime leasing season?
Knowing the answers to these questions before you even purchase the property is key to your success.
Clearwater rental market statistics
- $1,186 average rent for 2 bedrooms
- $1,554 average rent for 3 bedrooms
- Average days on market: 56 days
- Occupancy rate: 93.4%
- 43% renter occupied
- 56% owner occupied
Why are these statistics important? If days on market are typically 56 days, you need to know you can sustain that gap financially.
When looking at current rentals to determine the market rent rate, only look at properties that are like yours in type, number of bedrooms, etc. As you can see from the above average rents, one additional bedroom can make a big difference in the rent rate. You want to compare apples to apples when looking at what similar properties are currently renting for.
If you want to know what rent you can expect for your Clearwater rental property, contact Mynd for a FREE rental analysis.
Why Should I Hire a Property Management Company in Clearwater, FL
Does it make sense to hire a Clearwater property management company?
When you own a rental property, you own a business. Your success is dependent on how the property is managed. Being a landlord is more than just finding a tenant. You have laws and regulations to comply with. Having systems and procedures in place that protect your tenant as well as your investment is critical. A property management company can help you avoid costly mistakes.
Day to day operations of your rental property
A property manager takes care of the operations portion of your investment including:
- Marketing the rental property
- Screening tenants and selecting a quality one
- Lease signing and enforcement
- Lease Termination
- Rent collection and eviction if necessary
- Handling maintenance issues and emergencies
- Distributing funds to owners
Laws and Regulations
Each management task listed above may have laws and regulations that apply to it. It is your responsibility, as a landlord, to comply with laws such as Fair Housing. Mistakes can cost thousands of dollars.
What is your time worth? If spending hours each month reading up on the changes in the laws doesn’t appeal to you, consider hiring a Clearwater property management company. Our property managers are knowledgeable about the current laws that apply to your rental property. Mynd has in-house counsel to ensure our systems and procedures follow local, state, and federal laws.
Some of the laws that apply to a rental in Clearwater, FL
- Florida Homestead Laws
- Florida Leases and Rental Agreement Laws
- Florida Security Deposit Laws
- Strict regulations on Airbnbs
If your strategy is based on Airbnbs, Clearwater is probably not your market. They have strict regulations in place for Airbnbs.
If you choose to manage the property yourself, you will be the one taking that middle of the night emergency maintenance call. If you hire Mynd, we will take care of that. We have access to quality vendors to handle any maintenance requests. If you are an out-of-town investor, this will give you peace of mind that your property is being cared for.
Common home issues in the area
- Electricity problems (lightning is frequent in the area)
- Roof maintenance
- Preventive maintenance for hurricane season
Mynd’s property managers are familiar with these types of issues and know how to handle them.
Hire a Clearwater property management company
If you need property management in Clearwater or are looking to scale your portfolio quickly, contact us at Mynd today. We offer three tier pricing so you can select the level of service you need. We are here to be a valued partner in your investment business.
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