Does purchasing rental property in Palmetto, FL align with your investment strategy? Learn more about what makes this area attractive to investors and residents, how to determine what rent to set, and what laws apply to you.
When deciding if Palmetto fits your strategy, what should you be looking for in a real estate investment? Look at the current data for the average rent, time on market, and average home prices. Know what your strategy and goals are before you start looking for property.
You want to make sound decisions based on current, accurate data. What kind of appreciation can you expect? Can you get any cash flow out of the property? Base your decision on realistic expectations that the data and numbers give you. Let’s take a look at the Palmetto area.
About Palmetto, FL
Palmetto, FL is a waterfront community rich in history and full of opportunities to enjoy nature. Located on the Gulf Coast of Florida between Tampa and Sarasota, it is minutes away from major roadways such as I-75 andI-275. St Petersburg is only a 15-minute drive across the famous Sunshine Skyway bridge. It is a small city at a little over 4.4 square miles.
- Population: close to 14,000
- Cost of living is below the US average
- 12 city owned parks and 60 acres of green space
- Median age: 45.6
- Good schools
- Family friendly
People that enjoy water sports are close to sailing, canoeing, kayaking, scuba diving, and swimming activities. Golf enthusiasts can be found on the course enjoying Florida's sunny days in one of the many golf communities in the area.
Palmetto FL real estate
- $275,000 median listing home price (Dec 2020)
- $284,000 median sold home price (Dec 2020)
- 7.3% appreciation
- 42.3% appreciation in the last 10 years
The city has seen growth with the expansion of several water view condos. There are newer, more expensive homes being built in the area that can range from $375,000 - $959,990. Prices for real estate vary drastically depending on how close it is to the water, whether it is a new property, etc.
As of November 2020, this is a sellers’ market as there are more people looking to buy than there are homes available. The good news is the area has had steady appreciation in home values that look to continue into the next 10 years.
Economy and industry
- 2.4% job growth in the last year
- 45% future job growth over the next 10 years
- $41,289 average household income
Most jobs are in the healthcare, retail, and construction fields. It is an easy commute to nearby Bradenton, Sarasota, St. Petersburg, and Tampa for residents. Palmetto benefits from the economies of the larger cities that surround it as well as their own tourism industry.
How to Accurately Set Rent for my Palmetto, FL Rental Property
As an investor, you want to maximize the return on your property while also keeping vacancy to a minimum. To accomplish these goals, the rent must be set correctly based on the market. The market determines the rate. There are several factors that can affect rent rates including:
- Marketing your property during peak leasing season
- Current economic status of the city
- Growth trends in the city that could increase or decrease demand
- Type of unit you are renting
Before buying rental property in Palmetto, find out what types of units are most popular with rentals. Are they looking for single-family homes or condos with a water view? Having the type of property people are looking for is going improve your chances for success when investing in Palmetto.
Rental statistics for Palmetto, FL
- $1,100 average rent for 2 bedrooms (Fall 2020)
- $1,685 – 1,870 average rent for 3 bedrooms (Fall 2020)
- 15% renter occupied
- 84% owner occupied
- Average days on market: 19 days
- Occupancy rate: 94.7%
There is a low number of renters in the area. Because owners usually take good care of their property, your investment will benefit in terms of maintaining your home’s value. It also may help you rent your property because there isn’t a large supply of rentals in the area. This probably accounts for the low 19 days on market for rentals.
Rent rates vary significantly in this area depending on the unit type and location. Water view homes and condos rent for more. When determining what your property will rent for, be sure you are comparing like units (bedrooms, unit type, size) as well as the location of the property. Contact Mynd for a FREE rental analysis.
Why Should I Hire a Property Management Company in Palmetto, FL
Why would you look at hiring a Palmetto property management company like Mynd?
It is important to make sure a Palmetto property management company aligns with your goals. If you have a single family rental, you want a company that manages that type of unit. If they only manage condos, that probably isn’t the right company for you. Also, make sure they are abiding by all the laws and regulations that apply to your property.
A property manager takes care of the day-to-day tasks required such as:
- Marketing the property
- Finding and screening for a qualified resident
- Leasing the property
- Collecting rent from tenants
- Handling maintenance issues including emergencies
- Ensuring the property is being properly maintained and complies with the laws
- Offering superior customer service to reduce vacancies
Typical maintenance issues homeowners have in the area include:
- Foundation repair
- Air conditioning due to the hot temperatures in Florida
- Preparations during hurricane season
Mynd’s property managers know how to handle issues such as these. If you are an out-of-state owner, this can give you peace of mind that your property is in good hands and being taken care of and protected.
Laws and Regulations that apply to rentals
There are a lot of laws that protect tenants’ rights as well as a long list of local, state, and federal laws, rules, and regulations. This includes things like:
- Buying and selling homes in Florida legal considerations
- Florida Adverse Possession Laws
- Florida Civil Statute of Limitations Laws
- Property Code
- Fair Housing
- Evictions codes
You can try to research all these regulations yourself, or hire a Palmetto property manager to handle that for you. Mynd has legal counsel on staff to look out for your best interests and to keep up with the ever-changing laws. This is especially important during COVID-19 where even more laws and rules apply to landlords.
Hire a Palmetto Property Manager
Mynd property management is ready to be your strategic partner. If you are looking for investment property to buy property management in Palmetto, we are here to help you succeed. We offer a three-tiered pricing for our management services so you can pick the level that fits your needs. Contact us today for more information on how we can help you.