Welcome to Tampa Bay, where investors and families alike have countless homes and neighborhoods to choose from, and many have attractive price tags at this time. But, any seasoned investor knows the most ROI potential doesn’t necessarily reside within the home that has the lowest price tag.
Thinking about investing in Tampa and transforming your property into a steady stream of rental income? We recommend addressing the following areas before you take action and purchase a Tampa investment property.
- Analyze the neighborhood to determine which type of tenant you will attract. Is the home near a University? If so, be aware of vacancy…tenants may not be looking for long term/annual leases. What are the vacancy rates within this particular neighborhood?
- How much is the average monthly rent for a home this size in this neighborhood? While you may think you have an attractive and expensive rental on your hands, the market may state otherwise.
- How many upgrades will this home require before it’s livable? How much does each cost, and how long will the renovations take? For every month your house sits unoccupied, you’ll be losing money.
- Property taxes are not standard by any means and as an investor planning to make money from rent, you’ll want to be aware of how much you will be losing each year to taxes.
- You can go to the police, Internet, or public library for accurate crime statistics for various neighborhoods… what’s your neighborhood like? No one, especially families, wants to rent in an unsafe area.
If you’ve made it through the first 5 steps and decided to purchase the property, now consider the following for the best ROI possible!
- First, find out what the most useful improvement would be for this home, to increase its rental value. We’re in Florida, does the home have air conditioning? Not only will this upgrade make your home more attractive to renters, raise the rental value and pay for itself in no time, but this improvement should also boost the overall value of your property.
- Arrange to have your property inspected frequently – this will avoid major damage from occurring or unexpected expenses from arising.
- Secure a long term tenant. Securing a long term tenant is less work for you, and will decrease your chances of facing vacancies.
- Not around to check in on your property often enough? Place your investment property in the hands of managers who specialize in investment properties.
- Conduct a price review every 6 to 12 months with your property manager/advisor so that you are prepared to increase (or decrease) rent for the next tenant.
The recurring theme here is research. Know what you’re getting into, and know about existing property situations to ensure the best return on investment for your Tampa property. For more investment property advice, contact us at your earliest convenience.
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