Real estate investors from around the country have their eyes on purchasing long-term rental property assets in Florida. This is due to several factors causing rental property owners to reap the benefits of Florida population growth, demand outpacing supply, and high rental rates. Numerous Cities in Florida can produce an excellent investment property, but why is Orlando, Florida, our favorite rental market for real estate investors right now?
This article will cover why we like the Orlando rental market better than any other market in Florida. As a professional property management company in Orlando, Florida, we’re seeing great things happening for our rental property owners and real estate investors.
So let’s jump into the underlying reasons why Orlando, Florida is the best market to invest in and what we see first hand at The Listing Real Estate Management.
Why Orlando vs. Other Rental Markets in Florida?
Real estate investors looking to purchase a rental property in Florida often debate which market is the best. We believe the Orlando rental market is currently outpacing other Florida metro areas and will continue to produce better returns for landlords and real estate investors.
Why the Orlando Rental Market?
- Population Growth
- Future Economic Plan
- Rental Rate Increase
- Migration Change
Population Growth
All of these factors are currently pushing the success of rental properties in the greater Orlando area. News Orlando states Orlando is the 2nd fastest growing city out of the 30 largest cities in the U.S. Central Florida consists of 7 counties: Orange, Osceola, Lake, Seminole, Volusia, Brevard, and Polk county, which consists of approximately 1,100 new residents moving to the area every week.
Future Economic Plan
The future of the Orlando economic landscape is looking positive for the future to come. Orlando has the framework for excelling and expanding industries and outpacing the nation. The Orlando Economic Partnership and the City of Orlando have plans and expectations. The Orlando Economic Partnership states, “The Orlando Economic Partnership serves the seven counties and 95 cities and towns of the Orlando region to advance broad-based prosperity. This means finding regional solutions that address shared current and emerging challenges to create equal access to resources that enable opportunities for all.”
Orlando has numerous vibrant and flourishing industries. Our industry growth is creating numerous jobs and causing new work opportunities.
Courtesy of the Orlando Economic Partnership
Rental Rate Increase
In Orlando, rental rates are soaring. According to Orlando Sentinel, rental rates are flying due to record-breaking demand. According to CoStar, rents in Orlando have soared 13.8% since this same time last year. Click Orlando is claiming its ridiculous growth. As an Orlando property management company, we have seen firsthand our property owners and real estate investors can expand rental rates and still have a large tenant base. Rental properties are leasing extremely fast, and investors are currently riding the rental increase wave.
In any city in Florida, there are better areas and towns to be invested in. Certain areas in the Orlando market will have higher rental rates and will continue to increase at a steady upward trend. We have provided our real estate investors and landlords with the best areas to buy a rental property in Orlando, Florida.
Graph Courtesy of Apartment List
- Rental rates are expected to continue to rise in Orlando, Florida. Over the past year, we can testify that tenants are willing to pay a premium to secure your rental property.
Migration Change
The State of Florida is experiencing a tremendous increase in new residents. According to Business Insider, new tech companies, sunshine, and no state income tax are the leading reasons people are moving to the state of Florida.
Here in Orlando, we’ve seen a new wave of residents; no longer is it just residents from the Northeast, now we are seeing many west coast residents moving to the Orlando area. Orlando Business Journal states Californians are moving to the sunshine state. Leasing professionals here at The Listing Real Estate Management have seen new residents from all over the country relocating due to reasons such as no state income tax, covid lockdowns, work opportunities, quality of life, etc. It used to be that many of the new residents were relocating from the Northeast, but now we have national and international residents flocking to Orlando.
Potential Investment Properties in Orlando, Florida.
As an investment property source and management company in Orlando, we deal with rental property assets daily. We have researched and provided a few investment properties that could yield a solid return for any real estate investor. Please note that these examples have been provided by our investment specialists but only as an example of rental property assets that would be great rental properties. These properties are from the local Orlando Regional Realtor Association.
This new listing in Longwood, Florida, is an excellent example of the type of rental property you can buy and rent in the Orlando area. When real estate investors are looking to purchase an investment property such as the one shown above, you need to be ready to submit an offer as this home will not last more than a few days.
Potential Rental Rate:
- $1,300-$1,450/mth
In the Casselberry and Longwood areas, you can still find cheaper properties that yield the same rental rates as surrounding Orlando areas.
This next property is a duplex located in the Conway/Hourglass area in Orlando, Florida. This area is just outside of downtown Orlando and a highly sought-after area for new tenants.
This duplex is listed at $375,000; one side of the duplex is a 3 Bed/2 Bath. The other side is a 1 Bed/1 Bath unit. This property is very well priced as typically in the Downtown Orlando area; you won’t find a duplex or multifamily property for under $450K.
This property may need a little TLC, but once updated, rental rates are sitting very well at:
- 3bd/2bth Unit Rental Rate: $1,350-$1,450/mth
- 1/1 Rental Rate: $950-$1,050/mth
- Total monthly rental potential: $2,300-$2,500/mth.
These are just a few examples of rental property assets that can be found and purchased in the Orlando real estate market.
Property Management’s Take
Our rental property owners and investors seek out rental property assets as a property management company in Orlando. Our goal is to assist them throughout purchasing a rental property from start to finish. Whether you need an investment buyer specialist, a free rental analysis, vendor or contractor references for fixes and flips, we are here to be a resource for you.
The Central Florida and Greater Orlando Metro is ripe for economic growth and expected to continue in that trajectory. If you are looking to invest in the Orlando real estate market, reach out to us here at The Listing Real Estate Management. Orlando Florida’s the most unique and highest quality property management company in Central Florida.
