Top Tips When Buying Investment Property in Tampa
Have you thought about Tampa for your next real estate investment?
Tampa, FL has become quite the hot spot for real estate investors in the past few years, and with good reason. The housing prices in the city have been on an upward curve, thus capturing the interest of many potential buyers.
In fact, the Tampa Bay Times has ranked Tampa in 7th position as the most attractive metropolitan area for investors in the country. In recent years, the state of Florida has witnessed a rise in average rental prices by as much as 30%.
This is currently the largest recorded rent increase in the entire country. The rising rent prices have made this city an exciting prospect as seen by the increasing interest from potential buyers.
So, what makes Tampa such an attractive destination for investors? Generally speaking, Tampa is a great place for business. The economy is diverse with multiple industries such as tourism, construction, and technology.
The Port of Tampa also provides businesses with the opportunity to ship their products to other markets outside the state. To understand the property market in Tampa, you’ll need the professional input of a reputable property management company.
Here at Best Rental Services, we have a great understanding of the Tampa rental market and we’ll help you find the best investment that meets your financial goals.
What Drives the Real Estate Market in Tampa, FL?
The property market in Tampa is affected by several factors, the chief of which is the influx of new residents.
Within the past ten years, Tampa has witnessed tremendous growth in population by as many as 230,000 new residents according to the US Census Bureau. The main reason for this growth is attributed to the high quality of life that Tampa residents enjoy.
Tampa is generally a great place to live. There’s an abundance of job opportunities that attract people from other cities in Florida and all over the country. This has increased the demand for housing and caused a subsequent rise in rental prices.
A significant number of the jobs in Tampa are provided by the private sector. As of September 2021, Tampa recorded 86,400 new jobs since the beginning of the year. This presents a positive growth in employment, attracting even more people to the city.
Currently, the property market in the city is overflowing with buyers. With as much as 48% of the households being renters, there is a need for adequate rental housing. The high demand and low supply have driven up the rental prices in the Tampa metropolitan area.
Some of the buyers have also been found to be institutional investors looking to earn great returns from the market. The rise in rental prices is expected to continue if the competition between potential buyers carries on.
Tips for Investing in the Tampa Rental Property Market
Tip #1: Inspect the Property
After you have identified a suitable property to invest in, it is always advisable to inspect the property’s condition. An inspection tends to reveal many details that may not have been mentioned in the initial communication. This can potentially save you a lot of money in unforeseen expenses and damages.
For a more thorough inspection, you should consider hiring a professional property inspector. Such experts tend to catch any damages and inconsistencies that might go unnoticed by the untrained eye.
They also provide a comprehensive inspection report that highlights all the details of the property. Thus, you’ll be able to know if you’re getting a good deal from the transaction or if you’ll need to negotiate for a better price.
Tip #2: Negotiate for the Best Price
Property negotiations encompass a number of factors, not just the overall price. When negotiating the appropriate price for a transaction, one needs to consider factors like the property’s condition, the location, the market prices for comparable properties, and so on. The transaction fee should be a reflection of these different factors combined.
In real property transactions, you can also negotiate who bears the costs of the transaction and to what extent. For example, the seller may sometimes offer to cover the closing costs of a transaction as an incentive to the buyer.
A real estate transaction should be approached with all the relevant information so you can negotiate a price that works best for you.
Tip #3: Familiarize Yourself with the Local Homeowner’s Association
Homeowner’s associations have taken up a vital role in the development of neighborhoods and local communities. These associations ensure that there is harmony in the community and uniformity in development. They also oversee common spaces and ensure that the local property owners adhere to the plan.
They also have rules and regulations that are intended to guide the members. These rules can determine various issues such as parking spaces, landscaping, and property maintenance, among others. The rules may be agreed upon by consensus and the property owners may be required to pay a membership fee.
Tip #4: Hire a Property Manager
For property owners and investors living outside of Tampa, it is an absolute necessity to find a reliable property management company. A competent property manager will make real estate investment so much easier by representing you with the tenants.
Here at Best Rental Services, we provide full-service management to relieve the pressure from our clients.
Even as a local property investor, you stand to gain a lot from working with a property manager. Property management companies provide beneficial services such as property marketing, tenant screening, rent collection, property maintenance and tenant management.
Such services are vital in ensuring that your property performs at its best, thus, helping you receive a healthy return on investment.
Investing in Tampa real estate promises to be a lucrative endeavor. With the influx of new residents, the demand for property to settle on will only increase. At the moment, many buyers are trying to enter the market because of the attractive rental prices.
At the same time, renters are attracted to this city because of the employment opportunities and the high quality of life.
At Best Rental Services, we have an intimate understanding of the Tampa rental market and we can help you navigate through your investment journey. Our professionals have the knowledge and expertise to help you maximize your returns and to keep your property in peak condition. Connect with us today for exceptional property management services.