The current real estate market has changed the rental market significantly, and I do believe it will continue for some time. I don’t mean apartment rentals or those that would be considered as life time renters. I mean the single family home rental market. It used to be that most renters were people that didn’t have the money for a down payment on a home so they would rent and save while they were renting. In some cases people have jobs such as the military and while they could afford to purchase a home they chose to rent as they move every three years and it is hard in a normal market to move every three years and absorb closing cost twice in that time period. You can imagine that in the current declining valued housing market that it is a great impossibility for someone in that situation to break even in today’s market. I currently have a program to help military personnel. If you are interested you can see my MILITARY BUYER/SELLER PROGRAM
I’m sure I’m missing some of the reasons people rent, but you understand what I mean.
You may ask who makes up the majority of those who have rental property. We all know there are always investors who have rental properties and make a living at them, but there are lots of people who are choosing or being forced into becoming landlords or handing off their properties to property managers because to sell their homes in the current market means huge financial loss for most. Financial losses most can’t afford to absorb, so they become landlords and hope to sell some time in the future. And there are more investors now who are buying properties for very low prices from the banks and renting while waiting for the market to improve so they can sell them and turn a nice profit. Who are those that are now renters? The current rental market is made up of all those who have had to go through the short sale or foreclosure process. A large number of those are families who are accustom to living in a single family home and need the room of a single family home because of the number of needed bedrooms and space that most apartment complexes really are not set up for. Below is a list of some stats I found on www.responsiblelending.org just for the state of Florida.
2010 State foreclosure projections: 445,100
State foreclosure projections (2009-2012): 1,482,279
Total state foreclosure starts (Q1-2008 through Q1-2010): 764,021
Total state foreclosure sales (Q1-2008 through Q3-2009): 112,836
Total state foreclosure inventory (end Q1-2010): 484,421
Total state past due mortgages (end Q1-2010): 875,869
What does all this mean? It means that our neighborhood makeup is different. I think our neighborhoods will be more transient than they currently are and I think that in some cases the exterior conditions of the neighborhood will change. You know what I mean. Not everyone takes care of the yard like the owners do. It also affects rental prices. Our economy is a supply and demand and in my neighborhood…….FISHHAWK RANCH…. There aren’t that many rentals available and the nice ones that are priced middle of the road go quickly. What has happened in my neighborhood is rental prices are on the rise and the day of negotiating the price down are few and far between now.
As there are more rentals on the market property management is also on the rise. Finding a good property manager is key. This is the person who is looking after your investment and making sure that the renter pays the rent on time and knows the ins and outs to get a tenant removed quickly if the rent payment stops. If you are looking for a good property manager to manage a property in the Fishhawk, Lithia, Valrico, Brandon, Riverview, Apollo Beach, or Plant City area please visit my website at PROPERTY MANAGEMENT.
REALTOR, Keller Williams Realty
CDPE – Short Sale Specialist
PCS Military Relocation Specialist
I don’t work from 9 to 5. I work from start to close!