With properties still selling in many areas at above asking price, a significant number of would-be homeowners have been forced to remain on the sidelines – at least for a while longer – and continue to rent their living space…and as a residential rental property owner, this can be profitable for you, particularly if your investment real estate is located in warm sunny areas of the U.S.
According to data from Realtor.com, February 2022 marked the 7th month in a row where rent growth reached double digits for studio, 1-bedroom, and 2-bedroom properties. In fact, figures indicate more than a 17% increase as compared to the prior year.
Likewise, the median monthly rent in the 50 largest U.S. metro areas – which include the Orlando / Central Florida locale – hit a new high of nearly $1,800. Some of the other fastest-growing markets include:
- Miami, Florida
- Tampa, Florida
- Memphis, Tennessee
- Austin, Texas
- San Antonio, Texas
- Jacksonville, Florida
- Las Vegas, Nevada
- Phoenix, Arizona
- San Diego, California
Overall, this represents an average growth rate on monthly rent of over 22% across the board in most of the Sun Belt metro areas. Yet, while this increase has made renting less affordable for some potential tenants, if you have good-paying renters in place, it is possible that you have also seen growth in your investment property income stream.
Keeping up with the needs of tenants – as well as the everyday and emergency items related to your investment properties – can be somewhat tedious, though, especially if you own multiple units. This is where bringing a professional property management team on board can help.
If you own residential rental real estate in Central Florida and you are looking for a way to delegate some (or all) of these time-consuming tasks, give us a call and we’ll walk you through the services we offer that can make your life easier.
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/