The real estate market has changed in the past few decades mainly because people see it as a more stable investment. The industry trends are changing as the processes are becoming digitalized, and information is widely available, with a higher ROI potential in the market.
Individuals interested in the real estate market see it as a viable option for long-term investment. The right investment in real estate today could easily double your investment in the next two decades. Unfortunately, the Orlando market may be unpredictable if you don’t have prior experience.
The Orlando market’s inventory dropped nearly 3.7% in 2022. The changes were pretty astonishing, considering the market trends of the time. However, real estate enthusiasts suffered greatly because of this sudden change. In 2023, the inventory amount has increased, but it’s still necessary for investors to know the right opportunities.
Is Orlando Good For Investment Property?
Orlando is one of the best places for real estate investment if you know how to handle them. The Orlando real estate market is skyrocketed as the inventory levels have recovered greatly, increasing the overall investment potential in the region. People are readily purchasing and selling their properties, which has caused a lot of commotion.
The demand for online property seeking is at an all-time high. Over 43% of property buyers start by checking online sources. However, Orlando-based real estate management companies are a more viable option. Here’s a list of a few reasons to invest in the Orlando real estate market.
1. Higher Rental Income Potential
Professionally-owned resort demands skyrocketed after 2020. Short-term rental properties became the main selling point for Orlando’s real estate market in a brief period, increasing the income potential in the industry.
It is a hotspot for visitors, making it a viable option for almost everyone. Experts suspect the property rents could reach up to thousands of dollars in the upcoming years. It can prove to be a major industry shift, and the right decision right now can benefit investors in the long run.
2. Improving Local Economy
If you’re planning to earn a better ROI from your properties, knowing the general economic health of Orlando has necessary. It is one of the quickest-growing locations in the U.S. in population and economy.
Orlando has plentiful potential and could easily top the best places to live. It also has some of the best key sectors, which make it a thriving city. Further expansions ensure real estate investments bring better results in the next decade.
3. Increasing Tourism Sector
It’s no surprise that Orlando is one of the most visited locations in the U.S. It caters to a large tourist base and has some of the best offerings for those who visit. For instance, the following are some of the most visited commercial locations:
- Walt Disney World
- Universal Studios Orlando
- Discovery Cove
These locations are also contributing to the growing demand in the Orlando landscape. A single investment in Orlando could bring in better market pricing quickly. Interestingly, the market inventory has increased, making it the perfect time to invest.
Do Property Managers Handle Everything?
Property managers are great for real estate enthusiasts who want to profit from it. These professionals are experts and have the experience necessary.
You have to do a lot for a property deal, but with professional property managers; you can rest assured they will handle all the tasks on your behalf. Here’s a quick list of things the property managers handle.
1. Finding New Tenants
If you are a new commercial property owner, you may not fully understand how big of a responsibility that is. Rental units in Orlando are highly profitable—but only if you have tenants. Screening through hundreds of applicants can be a nuisance and tiring.
Fortunately, professional property managers can help in this regard and assist with finding new tenants. These tenants can be from different backgrounds, but the property managers will handle everything on your behalf.
It streamlines the renting process, allowing you to enjoy rental earnings while paying a small percentage to the managers.
2. Handling Complaints
Catering to the needs of your tenants is a part of your job as a commercial property owner. For instance, if you’re renting out the properties to frequent parties, you might face complaints from the neighbors. As a commercial property owner, it’s your responsibility to cater to these problems.
In other more severe cases, the property owners may also have to handle emergencies like a leaked valve, property damage, etc. It can be a lot of work to handle on your own, but professional property managers can lend you a hand with the process.
3. Property Adjustment
Rent collection is the property owner’s responsibility, which also includes lease management. Leases are pretty technical, so most property owners outsource the task to third-party property managers.
These professionals set up systems for rent collection and have set rules for various disputes. For instance, these managers may set up a rule for late rent payments in case someone falls short.
These property managers can also help the owners set a rental rate. Therefore, the property manager you choose should have a market understanding. These managers should set the rental prices so that it still has a good income for the owners while staying attractive for the tenants.
These property managers can also adjust the rental pricing based on industry changes and trends. For instance, you can get more rent as the property prices improve.
4. Property Maintenance
Property managers are also responsible for maintaining properties so that their real estate stays in good shape and gets the right price. It also involves creating a safe environment for the tenants and ensuring they can get the right value for their money.
As a commercial real estate property owner, handling so many properties on your own will be overwhelming. Fortunately, you can ease the process by outsourcing the task to a professional. These professionals can save a lot of trouble and ensure they get the best pricing.
5. Property Supervision
The responsibilities of property managers are more than what you think of in most cases. Their role extends more than the visible day-to-day errands and services. These property managers are responsible for almost every property-related task necessary for better income.
These managers require the best results if they are also the investors, which can be challenging. Fortunately, outsourcing property management to a professional ensures you can get a helping hand for the property whenever needed. These professionals can help manage, analyze, and plan the property.
The property managers are also responsible for supervising all other individuals involved with the property. It can be caretakers or security teams in your properties. You need to supervise their work and ensure everything works smoothly.
You’ll also need to handle their salaries and conduct performance evaluations. All these tasks can be a little too challenging, but outsourcing them to a professional real estate company like ours can ease the process.
Why Is Rent So High In Orlando?
The cost of rent in Orlando is more than $1500/month on average, which is pretty high. The question is, why is the rent so high in Orlando? The prices of properties in Orlando are increasing monthly; experts recommend we could return to the pre-pandemic price hike.
There’s an affordability crisis, which has negatively impacted the real estate market.
While the earning potential for commercial property owners has increased, it has also reduced the affordability of renters. There’s a nearly 18% increase in rents in the first quarter, and if this trend elevates, it could become a serious problem. The average price increase in this period is $380 monthly.
Because of this sudden price hike, property owners are seeking help with their rent, contributing to further complications. Another reason for this complication is the average wage in Orlando, one of the lowest among the top 50 metros in the U.S.
According to the Orlando Economic Partnership, we could witness 1500 new residents in Orlando every week if the demand for Orlando relocations keeps increasing. It will contribute to higher real estate market tribulation and cause undue pressure on existing properties.
The less fortunate individuals will have to move out and be replaced by families that can afford the higher rent. Although 25,000 apartments in Orlando are under construction, it doesn’t suffice for the current market demand.
In these tough situations, rent stabilization implementations are also being considered. However, no one knows if that’s going to be the case.
Seeking Professional Property Management? Let us help!
The right professional in property management can ease the owner’s experience. Hiring these professionals is the go-to option if you’ve struggled with property management for too long.
At Icon Property Management, we have some of the best solutions for property management up and running for you. All you need to do is contact us today.
Our professionals will carefully assess your property management needs, the kinds of properties you have, and what you plan to do with them. It will help us provide tailored solutions just for you.
Contact us today if you’re ready to make your life easier!