Marketing Your Rental Property

Yes, now is a great time to buy homes in Central Florida. Homes in Central Florida continue to appreciate even though many headlines may lead you to believe home prices are dropping all around the country. The median home price in Central Florida in May of 2020 was $259,900. Today those homes are selling for $441,300. That’s an average annual appreciation of just over 9% annually. (These stats are from the Orlando Realtors Association). Adjusting for inflation using CPI data this is still a 4.5% growth.

US Census data shows that the Orlando area is the fastest growing metro area in the state and one of the top 10 in the nation. There is no reason to believe that home values are going to do anything but continue to rise in this market.

A full one third of people migrating into the Orlando area rent vs buy and the average first time home buyer is now at a record high age of 40. This means there are more people moving into this market and more people than ever are renting instead of buying, a trend that show no sign of reversing.

The decision to invest in rental property in Central Florida is a clearly supported by basic supply and demand data.

While the eviction process isn’t pleasant anywhere, Florida is a very “landlord friendly” state. The state only requires a three-day notice to pay rent. So, if the rent isn’t paid on time the tenant is served a “three-day notice.” Once the three days are up an eviction can be filed. After that they only have 5 days to respond by asking for a court hearing if they intend to contest it. As long as everything is handled properly the process can be completed in a matter of weeks. This is among the fastest processes anywhere.

Professional property managers, like Remi Emerson Residential, are equipped with the tools to maximize your rent rate without extending vacancies. Professional property managers can see what homes are actually renting for, not just what owners are asking for on Zillow. Improper pricing leading to longer vacancies or lower rents are a common mistake made by self-managers. This alone can more than make up for any fees required.

Professional property managers can also keep an investor out of hot water legally. Whether it’s serving three-day notices for non-payment, 7-day notices to cure, or dealing with an ESA animal there are a myriad of ways a landlord can wind up in court. And in Florida, even a small loss in court can require the landlord to pay the tenants attorney’s fees.

At Remi Emerson Residential we have systems set up to pre-qualify tenants before they even see the property. We do a full screening including credit, criminal background, job history, rental history, and ID verification, and we do it all within the boundaries of the Fair Housing Act. Our leases are written by the top law firm in Florida for Landlords and Property Managers, and we do a total of five different inspections before, during, and after each tenancy to ensure the investments we manage are protected.

Whether you work with one of our agents or you already have one we are happy to evaluate a potential rental property BEFORE you buy it. We can run a full cash flow analysis for you so you can see not only the monthly cash flow but how fast you will build equity, what the tax benefits will be, and what your total cash on cash return over time will be (the real reason you invest!) We work with a lender who only does Real Estate Investor Loans. These DSCR loans are based on a property’s rental income and not the buyer’s personal income to debt ratio. With the right agent, the right financing, and working with a professional property manager from the very beginning makes an unbeatable team.

HOA’s vary wildly in how they view and work with investors. Some HOA’s are afraid of large institutional investors turning their neighborhoods into rental zones (a complete mirage) and require owners to have possession of the house for a year or more before they can rent it out. Other HOA’s require tenants to fill out applications (usually accompanies by a fee) or have some other small requirements. That is why it’s important to involve a professional property manager BEFORE you buy. We know what questions to ask!

As far as government regulations go there are very few. Florida is a landlord friendly state. There are no license or inspection requirements specific to long term rental properties. Many states require rental licensing and ongoing “safety/code” inspections or “habitability inspections” (all with accompanying fees, of course) or even rent stabilization. There is none of that in Florida.