The booming real estate rental market in Orlando is making it an ideal time for property investors to get into the market. With home prices rising and wages stagnant or falling, it can make it difficult for many low- to mid-income buyers to get into the housing market.
With these existing market conditions, many people are left to look at renting a house until the market shifts and they can afford to make a purchase. Because of this, the demand for Orlando rentals has gone up considerably.
This creates a best case scenario for those thinking of becoming landlords. High demand means that a supply of affordable and accessible rental properties is greatly needed. With this demand comes the opportunity for a steady stream of rental income which is very enticing for those wishing to get into the rental property market.
Current Market Trends
As of September 2016, the average rental apartment in Orlando went for $1,338 per month, with a one bedroom at $1,163 and a two bedroom at $1,382. Data also shows that rental rates over the past six months have climbed as well. One and two bedroom rents have increased in value by 3.7% and 3.4% respectively. This positive rental trend bodes well for investors looking to purchase a rental property and supplement their income long-term.
Orlando rental rates vary depending on the particular neighborhood. The highest valued neighborhood when it comes to current rental rates is the Central Business District, followed by Lake Formosa and Baldwin Park in second and third place. If you are looking at making an investment in a rental property, be sure to heavily research possible locations in order to get the best bang for your buck.
Options for Rental Property Owners
Because of its desirable location year-round, Central Florida is a great market to get into for investors. Not only are you virtually guaranteed a constant demand of renters, but your property can also accommodate vacationers as well.
It is estimated that over 66 million people visited Orlando in 2015. With out-of-towners looking for more versatile options such as vacation homes or short-term rentals, Orlando landlords have plenty of opportunities to meet growing rental demands.
When it comes to property types, there are lots of options to consider. Private homes are an obvious option for those wishing to build up greater equity. Condo hotels, condominiums and townhomes are also great property type options to look at as they are more affordable and are often located in desirable locations. Additionally, smaller units like these may be easier to fill year-round with students, young professionals or vacationing families.
Whether you’re a local or someone looking to make an investment from out of town, now is the time to make your move in the Orlando rental market. The Realty Medics can help make your dream of property investment easy and hassle-free. Check out why we’re a leader in the Central Florida property management market.