While rental property has been a viable source of income and growth for investors for decades (or even centuries), over the past couple of years, homes and units in certain areas of the country have proven to perform even better than expected for many real estate owners.
Take, for instance, property that is located in metro areas of the United States’ “Sun Belt” – which includes cities in Central, South, and North Florida – has seen increases in both the monthly income that is charged, as well as the overall value of the investment(s).
According to a recent study by Realtor.com, February (2022) marked the seventh month in a row where growth has reached double digits for studios, as well as one- and two-bedroom apartments.
Monthly rent prices have also gone up in many of the Sun Belt metro areas, on average by more than 22%, between February 2021 and February 2022 – and this is good news for rental property owners who have good-paying tenants in place.
As of early 2022, the median asking rent reached just under $1,800 per month on 0 – 2 bedroom properties – a growth rate that is roughly four times as fast as the rate that occurred prior to the COVID-19 pandemic.
For real estate investors who are seeking additional sources of income, now could be a good time to add to your portfolio – provided that you are able to find units in desirable areas where the income-to-expense ratio is in your favor.
In terms of managing and maintaining these units – as well as your current holdings – a professional property manager could offer a solution where you can free up more of your own time while also collecting incoming cash flow from rent.
So, if you own residential rentals in the Orlando and/or surrounding Central Florida area, give us a call and we will walk you through the process, as well as the perks!
February Rental Report: Sun Belt Metros See Highest Rent Growth and Low Affordability. February Highlights. By Jiayi Xu Danielle Hale. Realtor.com March 23, 2022. https://realtor.com/research/february-2022-rent/