Why Should I Purchase a Rental Property in St Petersburg, FL
Does investing in St Petersburg, FL fit your rental property investment plan? Learn more about the city, real estate market trends, and how a St. Petersburg, FL property manager can be an important part of your team.
As an investor purchasing rental property, look for a city that is experiencing growth and forecast to continue growing. Examine the historical data over the past 10 years and look for the positive trends. Let's take a look at St Petersburg, FL.
About St. Petersburg, FL
Known for its award-winning Gulf Coast beaches, St Petersburg is a popular tourist destination. Downtown offers great shopping, bars with live music, and restaurants. The city is home to the Salvador Dali Museum, Fort De Soto Park, and Tropicana Field where the Tampa Bay Devil Rays play. The area hosts a long list of festivals throughout the year. The city's past reputation of being full of retirees has changed. Many of the older homes have been replaced with new construction, and the city has attracted younger families.
- Population: 261,338 (2018)
- Cost of living: below the US average
- Median household income: $55,134 (2017)
- Average household income: $80,310 (2017)
- Average age: 42 (2019)
- #8 Best Baseball Cities
- #3 Best Cities to Retire in America
- #41 Best Cities to Buy a House in America
- Family Friendly
Real estate in St. Petersburg, FL
- $212,800 current average home value
- 10.2% appreciation in last year
- 51.3% appreciation over the last 10 years
St Petersburg has seen significant appreciation over the last 10 years. There is a wide selection of homes in the area from older, charming bungalows to newer, modern stucco homes. There is a wide ranges of home prices depending on size, type, and location. Locations near the Gulf, on the water with a dock, or close to downtown will bring a premium price.
Top rated neighborhoods include:
- Downtown St Pete
- North Shore
- Crescent Heights
- Old Southeast
Economy and Industry
- 2% recent job growth (above national average)
- 40% future job growth (above national average)
Industries in the area include finance, manufacturing, and healthcare. The largest employers are Jabil (technology manufacturer), Raymond James (financial), Home Shopping Network, and Johns Hopkin’s All Children’s Hospital.
St Petersburg offers investors appreciation and future growth backed by a strong, diverse business presence that includes 3 Fortune 500 companies. If cash flow is part of your investment strategy, you will need to calculate home prices vs rental prices for specific properties to see what the cash flow potential is.
How to Accurately Set Rent for my St Petersburg Rental Property
How do you know what to charge for your rental property in St Pete? You want to maximize your return and minimize vacancy. When setting rent, look at comparable properties and what they are renting for. One additional bedroom can have a significant impact on the rent you can charge, so only look at similar properties (unit type, number of bedrooms, size, and location).
Statistics to consider when setting rent
- What is the average rent for the area?
- What is the average home price?
- What is the appreciation over the last 10years?
- What are the trends for the rental prices?
Rental statistics for St Petersburg
- $1,163 average rent for a 2 bedroom
- $1,524 average rent for a 3 bedroom
- Average days on market: 14 day
- Occupancy Rate: 96.2%
Properties are renting quickly, and tenants are staying in the properties longer based on these statistics.
- 46% renter-occupied
- 53% owner-occupied
Statistically homeowners take better care of their property, so having more homeowners than renters should result in values going up over time.
Why Should I Hire a Property Management Company in St Petersburg, FL
When purchasing rental property, you need to make smart decisions at each step of the process. Once you have purchased the property that is going help you reach your goals, the next step is managing it correctly. Most investors don’t buy rentals to take on a second job. If you value your time, hiring a St Petersburg property management company might be the right choice for you.
What does a St Pete property manager do?
A property manager will take care of the day-to-day operations of your business, ensure you are compliant with applicable laws and regulations, and make sure your tenant is taken care of.
Day-to-Day operations include tasks such as:
- Marketing the property
- Taking applications and screening them to find a quality tenant
- Lease signing and enforcement
- Rent collection and eviction (if necessary)
- Lease renewals
- Handle maintenance requests
Common maintenance issues in the area include:
- Air conditioning – St Pete has warm weather about 11 months of the year, so the air conditioner gets above average use in a year. Regular maintenance is important to keep the units running efficiently and to save wear and tear on the unit.
- Bathroom and main floors repairs
- Interior caulking
One out of three landlords are involved in a lawsuit because they do not understand the laws.
That is a scary statistic unless you are sure you are following the laws. As a rental property owner, you should be doing everything you can to make sure your asset is protected, your tenants are safe, and you are complying with the laws. If you are self-managing your property, this means committing the time required to read up on the ever-changing laws. A mistake can cost thousands in fines and legal fees. A property manager knows the laws and will ensure your property is in compliance. That is just another advantage of having a property manager looking out for your investment.
Examples of laws that apply to a rental property in St Pete:
- Florida Tenant Rights Laws
- Golf Ball Hazards in Florida: Legal Overview
- Property and Fence Laws
Mynd has in-house counsel to ensure our processes and procedures comply with local, state, and federal laws.
Ready to hire a St Petersburg property management company?
Our professional property management in St Petersburg helps you have a profitable business that runs without you. At Mynd, we have a three-tier pricing structure to choose from so you can select the level of service you need.
If you are considering expanding your portfolio in a new market, we can give you advice based off your strategy and goals. We have offices in 19 markets across the country and access to proprietary data to help you make smart decisions. Contact us today.
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In the meantime, learn more about ways to start with a smaller downpayment here.