Are you thinking about making your first property investment? If so, you might want to consider buying real estate In Florida. The state provides a wealth of opportunity for those eager to make their mark in this industry. Profits could be substantial and you may find the process is easier than you would perhaps first assume. As well as this, the state is ideally managed for landlords and in many cases puts the needs and requests of the landlord before that of the tenant.
Indeed, it’s true to say that many people find the possibility of buying property for investment purposes in Florida incredibly intriguing. Through the last couple of years, demand for properties and in particular, single-family homes has consistently risen and more people are likely to rent than buy. Due to this rental prices are continuously growing. Benefits of buying investment property here include low taxes and insurance. As well as this, there is absolutely no state income tax.
Then, there’s the climate and excellent healthcare. This makes Florida one of the top places where baby boomers retire which again, could mean great profits for investors. So, let’s look at a few of the things you need to know before you proceed with this possibility.
A Landlord Friendly State
One of the first points to be aware of is that Florida is considered to be a landlord friendly state. The reasons for this is that there are absolutely no laws regarding rent control. There are no deposit limits and these may be returned as many as 30 days after someone moves out.
As well as this, a notice can be provided within 3 days of not paying rent while a seven-day notice can be given if there is evidence of intentional damage on the property. If there are various repeated issues, then you can expect to gain a seven-day unconditional notice. However, this does need to be approved and upheld by the court. These facts suggest that Florida is the ideal location if you are keen to enter into the property market for the first time.
Points Of Responsibility
There are various responsibilities that you will need to be familiar with if you do choose to rent out property in Florida. For instance, you might be keen to have a solid level of control of the type of tenants that rent your property. Legally you are free to do this, however, there are some boundaries to make sure that you comply with anti-discrimination laws. For instance, in Florida you can reject applications based on poor references or bad credit history. You can not however, choose based on sex or familial status. In other words, you can not choose not to rent to a couple with children. There are exceptions to these rules and you should check whether you are bound by them.
You must make sure that the housing you are proving is habitable. This means that the home is safe and secure for residents. For instance, there might be a broken heater on your property. You are legally obligated to fix this as a landlord. If you fail to do so, then there are a number of potential avenues that your tenants can consider. They could even legally withhold their rent until the problem is resolved. Similarly if you are renting an apartment, you will be responsible for rats, roaches, bedbugs, and mice unless it is explicitly stated otherwise. Do note, you will not be responsible for pest issues like this for a single-family home or a duplex.
Can you check up on your property? Yes you can but you need to make sure that you adhere to the rules here too. In Florida, tenants are provided with a certain level of privacy and you must respect this. You must make sure that you give them 12 hours notice before you enter their home. This is the case even if you are completing repairs or entering the home for a reason that would benefit them.
Furthermore, you may believe that if a tenant takes legal action against you, there is a legal right to retaliate. This is certainly not the case. Instead, you do not have any rights to increase rent or take any action against a tenant that makes a complaint against you or your business. If you do this, you could actually end up in more serious trouble. You must avoid that possibility.
Key Selling Points
It’s always a good idea to know some of the key selling unique selling points for any property that you are letting out to tenants. This will ensure that you have no issues gaining attention from target renters. It will help guarantee that your property is not left empty for significant periods and also help you judge which homes you should be investing in.
If you are buying holiday homes, then you should definitely be looking at the distance from the attractions. Beaches, theme parks, malls and other exciting possibilities should be close by if you are going to purchase a home somewhere like Orlando. This will ensure that you can charge higher rates for rent and guarantee that you will have a popular property for families. Alternatively, if you are buying property and marketing towards long term tenants then you need to think about what they need or would want.
You may want to think about investing in property on a gated street or a planned development. The benefit for tenants here is the additional level of security as well as the community feel to areas such as this. Furthermore, homes such as this tend to have the facilities that tenants will love such as swimming pools and sports facilities. Be aware, as a landlord, you may be responsible for the cost of maintenance on facilities like this. It is crucial that this fits within your annual and monthly budget.
The Ideal Places To Invest
You should research the best places to invest before you start to think about buying. There are a number of possibilities to consider here. One option would be the Villages Florida. This is a prime location and is just thirty minutes from Orlando. As such, it will be attractive to families and those who are on vacation in the area. If you visit the Voice of the Villages, you can gain a lot of fantastic information about this area. We’re sure the thriving community will be enough to prove to you why this is such a great area for real estate investment. That’s not even mentioning the local facilities such as stunning golf courses.
Alternatively, you could buy somewhere like Kissimmee. If you are seeking out a place to purchase property perfect for families on vacation, this is the ideal choice. Kissimmee is no more than a stone throw away from Disney World as well as various other attractions. There are plenty of gated areas here. This provides the benefit of additional security for your property and maintenance included in the fees.
Kissimmee is one of the main suburbs of Orlando and the city has seen phenomenal growth. It’s important to be aware that the main employment sectors within the city are accommodation and food services. So, if you are investing here and you are not focusing on vacation homes, these workers will be your main target tenants. The average home price here is a cool $285,000 while the median rent is just $1,478.
Or, if you are searching for some of the best cities where you can buy property in the sunshine state, then do consider Tampa. The city has seen significant home price rises as of late. However, there are plenty of suburb zip codes where the property is cheap. Once purchased, you’ll be able to rent out the home for as much as $1,500 each month. Tampa has also seen significant increases in employment, ensuring it is popular with buyers.
Then, there are places like Jacksonville. This city is the largest in Florida and has fantastic potential. Home prices are low here too with an average of just $210,000. As well as this, it has a fantastic healthcare system and a brilliant biological science sector. Rent growth here is also very attractive and the city saw a 2.6% increase through 2018, easily surpassing the national averages.
We hope this helps you understand some of the key points when you are thinking about buying property and renting it out in Florida. This could be a great decision and you will likely see strong profits if you seek this opportunity as long as you take the right steps. You just need to make sure that you understand your full responsibilities as a Landlord and are aware of the key conditions specific to the sunshine state. If you do you can easily buy property and rent to anyone from retirees to families on vacation or even food and accommodation workers. Target these tenants and Florida is a potential goldmine just waiting to be discovered.
About the author
Matt Angerer is the Founder and President of VerticalRent. He enjoys writing on a variety of topics that help Landlords, Property Managers, and Renters across America. He is particularly interested in helping renters understand their local marketplace, pick the best places to live, and find an awesome roommate. Since 2011, VerticalRent has grown to service over 100,000 landlords and renters across America.