Why Should I Purchase a Rental Property in Orlando, FL
What makes Orlando, FL a good place to invest in rental property and what do you look at to determine if it is right for your strategy? Learn how an Orlando property manager can be a valuable asset before and after you make a purchase.
Before considering real estate investing in Orlando, research some important statistics about the area that will give you a good idea of the city's health. Is the city experience growth? What are the main economic drivers for the area? Let's take a look at Orlando.
About Orlando, FL
Orlando is booming! It is the 4th largest city in Florida and the most visited tourism destination in the US thanks to world famous theme parks including Universal Studios and Walt Disney World. The city has experienced a 20% population boom over the past ten years. Forbes listed Orlando the #1 Best Places to Buy a House three years in a row.
Orlando City Highlights
- Named “hottest” single-family real estate market in the 50 largest US metro areas
- Population of Orlando: 287,442 (2019)
- Population of Greater Orlando: 2.5 million
- Classified as strong renter’s market
- Above average schools
- Forbes ranked it #2 in American’s Fastest Growing Cities in 2018
Economy and Industry in Orlando
Orlando was ranked #1 in the country for job growth by the U.S. Dept. of Labor, Bureau of Labor Statistics, 2015-2018.
Your first thought might be that most people in Orlando are employed in the leisure and hospitality industry with all the theme parks located in the city. However, Orlando is more diverse than that, and 80% of the workers are employed outside of that industry and in one of the many diverse industries that include:
- Aerospace and defense
- Advanced Manufacturing
- Innovative technologies
- Life sciences and healthcare
- Logistics and distribution
Orlando is home for hundreds of large corporations
150 international companies that represent 20 countries have facilities in Metro Orlando. Over 56 major companies have either headquarters or a major presence in Orlando. This list includes companies such as AAA, Tupperware, Darden Restaurants, Massey Services, The Walt Disney Company, JetBlue, Lockheed Martin, Scholastic Book Fairs, ABC Fine Wine & Spirits, and Marriott Vacations Worldwide.
Highest rent neighborhoods in Orlando
- Downtown Orlando
- Lawsona-Fern Creek
- Baldwin Park
- Lake Nona
- Metro West
Large student population looking for rentals
Orlando has multiple Universities and Colleges including the University of Central Florida, one of the largest universities in the US with 69,525 students. With limited on campus housing, most students are looking for rental units near campus. If student housing is in your strategy, the area near the university might be of interest to you.
Orlando is great for investors
Orlando offers investors a healthy economy, property appreciation, cashflow opportunities, and rent rate increases. If you still don’t think this market is for you, Mynd manages properties in over 19 investable markets, and we’ll help find a market that fits your investing strategy and goals.
If diversifying your investment portfolio is your goal, Mynd Property Management offers you the convenience of working with one management company in multiple markets.
How to Accurately Set Rent for my Orlando, FL Rental Property
What is considered a good rate for your Orlando rental property?
As an investor you are looking to rent the property quickly for the right amount of money. The market determines the rate you can charge, so offering a competitive rent will reduce your days on market. It is important to look at the current real estate market and renter market to determine what rent rate you can expect.
- $1,375 average rent for 2 bedrooms
- $1,700 average rent for 3 bedrooms
- $270,000 median house value
- 3.69% appreciation year over year
- 55% renter occupied
- 45% owner occupied
If you are looking for cash flow, you will want need to look at home prices vs. rental rates to ensure that is possible. When checking comparable properties, only look at the properties that are like yours in size and property type. The statistics above show you how one bedroom can make a $325 difference in rent.
Overpricing your property can lead to longer vacancy rates
Price your rental competitively to reduce your vacancy time and achieve the highest ROI. The location of your property can command a slightly higher rent if it is in a hot neighborhood, convenient for commuters, or is located in a good school district.
If you want to know what your property will rent for, contact our Orlando property manager for a FREE rental analysis. Mynd manages property in the area and has proprietary data to help you determine the right rent for your Orlando rental property.
Why Should I Hire a Property Management Company in Orlando, FL
Why hire a property management company in Orlando?
Before hiring a property management company, make sure that your goals and strategy align with theirs. You want a company that manages the type of property you own. In other words, it might not be the best fit to hire a company that only manages single family homes if you have an apartment complex. Don’t be afraid to ask questions about how they handle the day to day operations.
Property managers take care of the operations side of your business that includes:
- Getting the property rent ready
- Taking photos and marketing the property
- Accepting applications
- Screening and selecting a quality tenant
- Handling maintenance issues including those middle of the night emergencies
- Lease signing and enforcement
- Rent collection
- Lease renewals
- Evicting tenants when necessary
One of the most important things a property management company does for you is ensure that your rental property and the day to day operations comply with local, state, and federal laws. Violations can cost you a trip to court and thousands in fines. As a self-managing landlord, you are responsible for knowing the laws that apply to your rental unit and complying with them. If you don't have a property manager, that leaves you spending the required time to stay up to date on the ever-changing laws that apply to your rental property.
An Orlando property Manager knows the local laws and rules such as:
- Florida Residential Landlord Tenant Act
- Lead-based paint and radon gas requirements in accordance with Florida Landlord/Tenant laws
- Security deposit laws and limits in Orlando
- Code requirements on roofs
If you are an out-of-town owner, there may be some special issues you aren’t aware of that are common with homes in Florida such as:
- Orlando FL homes susceptible to foundations shifting and sinking as the homes get older.
- Florida offers a harsh climate for roofs. Weather issues like blazing sun, tropical downpours, hail, high winds, and extreme humidity can take a toll on a roof. It isn’t common, but occasionally a weather event can cause minor roof damage.
- If you need to replace a roof, be aware that Florida has strict building codes and your shingles must be able to withstand certain mph winds depending on what zone you live in. Other wind resistive construction features like hurricane clips may also be required.
- HVAC systems get a workout with yearlong use of the air conditioning, so semi-annual inspections to keep your unit running efficiently will prolong its life. Common issues include broken thermostats and dirty air filters.
- Mold issues come along with the territory in high humidity climates. Florida experiences several months of rainy season during the summer months, and it is common to have mold on the home and roof that may require power-washing.
Ready to hire a property manager?
How much is your time worth? Property management might cost less than you think. Mynd offers three tier pricing for their Orlando Property Management services so you can select the level of service that fits your needs. Mynd is ready to be your partner and help you succeed in your investment ventures.
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In the meantime, learn more about ways to start with a smaller downpayment here.