by Elsa Soto | Nov 2, 2017 | Homes, Villas and Condos, Investment Property in Florida, Long Term Rental
Central Florida Single-Family Home Long Term Rentals Make a Climb!
Let’s talk about the future of your home. Maybe you’ve been thinking of selling… maybe you’ve been contemplating Long Term Rental. The housing market consists of various home types with different situations in each – but has had a substantial number of Single-Family Home used for Long Term Rentals. Is now the time? The answer is YES!! There are more and more residents making the move to Central Florida and we have more tenants looking for homes than what we have to rent.
Daily Real Estate News – Single-family long term rentals are the fastest-growing segment in the housing market, outpacing owner-occupied single-family homes and all multifamily housing, according to the Urban Institute. Single-family rentals now account for 35 percent of the country’s 44 million rental units.
That figure is likely to increase, according to a panel of experts hosted by the Urban Institute’s Housing Finance Policy Center. Changing demographics and housing market conditions will fuel more growth in the rental market, the panelists say.
“Young people are waiting longer to get married and have children, which can make renting more economical,” the Urban Institute notes in a blog post about the panel discussion. “And while the age distribution of the U.S. population suggests most millennials are reaching the age of household formation and demand for single-family homes, much of this demand is likely to be channeled into the rental market.”
Two barriers remain blockades to homeownership for many millennials, tight mortgage credit standards and increasing student loan debt, the panelists note. So who’s buying these single-family rentals? Institutional investors account for only 200,000 of the more than 15 million single-family rental units nationwide, or about 2 percent of the market, the Urban Institute notes. On the other hand, 45 percent are owned by investors who own just one unit, according to Investability.
During the most recent financial crisis, institutions heavily invested in single-family homes, but that has since changed. Institutional investing is a small fraction compared to the growing number of mom-and-pop investors who have entered the sector.
But several headwinds stand in the way of sustained growth in the single-family rental market, Urban Institute panelists caution. Now that an abundance of cheap homes is no longer available, future growth will largely depend on successful management of what investors already own, says panelist Sandeep Bordia with Amherst Capital Management. Also, growth may come as smaller players look to consolidate. “While the single-family rental market may continue to grow rapidly in the coming years, it remains unclear whether institutional investors will make an increasingly large mark on this space or continue as small, niche players,” the Urban Institute writes on its blog.
Source: “Five Things That Might Surprise You About the Fastest-Growing Segment of the Housing Market,” Urban Institute
by Elsa Soto | Feb 3, 2017 | Long Term Rental, Testimonials
As many of you know, not only do we facilitate your real estate needs – we also facilitate long term rentals for owners and potential tenants. What other way to hear good news than to hear it from a client? Tim Hack, our Senior Property Manager, received great feedback from a Non U.S. Resident Owner impressed with the level of service he experienced in re-renting his long term rental home in Davenport, Florida. Tim works diligently to ensure our rental properties are in rent-ready conditions for our new tenants but also works quickly to ensure vacancy is at a minimum. What a wonderful team we have here – we are proud to be working closely together to provide this service to our owners and tenants.
by admin | Apr 1, 2016 | Homes, Villas and Condos, Investment Property in Florida, Long Term Rental
Buying a Second Home is a Great Idea
Buying a Second Home is a Great Idea 6 Reasons Why – There is something appealing about owning a piece of land that you can call your own. But you are not limited to just one property. When some people think about vacations, owning a second piece of land is even better. There are many reasons why people want to buy a second home, and below are just a few of them:
- Investment purposes: While markets go up and down, in the long run, markets tend to go up. Purchasing a home in an upcoming or already idyllic area can allow you to see that property appreciate over time, allowing your investment property to increase in value. To make that investment even more worthwhile, you can also rent it out. And when the time is right, you can sell the property at a huge gain.
- Retirement: You need to save a large amount of money so that you can eventually retire. But you don’t have to have your savings merely in the stock market or bonds – diversification is a good thing. Buying a second home can be part of that strategy. Choose a location where you would eventually want to live; if you are not sure, vacation in different spots until you find one that meets both your needs and wants. Consider the climate, cost of living, municipal facilities, and social life. You can visit your second home before you retire to establish connections as well as relax, and you can rent it out to help pay the mortgage.
- Vacation rental: Mountain homes, prime golfing location, waterfront property, national park hiking, wildlife retreat, fishing hole, or historical spot – there are many reasons why people pick their vacation spots. By buying a second home in one of these areas and renting it out, you can pay your mortgage and generate rental income from others who need a sweet escape from their daily lives.
- Let the good times roll: According to the National Association of Realtors, when asked for the reasons for buying a second home, vacation was the top answer. Given the great transportation system in the United States, it doesn’t take long to travel to any location you want. Whether it is your small isolated wooded retreat or a flat in a cosmopolitan city, getting away once in a while is always needed.
- Family getaway: Reunions, vacations, holidays, or for no reason at all – getting family together is a great way to remain connected. For larger families or groups spread across the country, buying a second home for a family retreat can simplify that connection while allowing family members to enjoy a more affordable vacation.
- Reverse it: As the saying goes, change is good. If you want to mix it up a little, consider a reverse – living in your vacation home while renting out your city home. Technology has made it easy for many of us to work remotely. Moving to a lesser populated place can mean lower costs while reducing your stress. Additionally, you can change back to your city home when you get a hankering for hustle and bustle again. Either way, you can earn a rental income while enjoying a different location. After all, a change can be as good as a rest!
Though it may seem easy peasy, owning a second home isn’t without its complexities. Make sure you speak with a mortgage lender to ensure you can afford both properties, including mortgage payments, property taxes, repairs, renovations, and general upkeep. Always try out the area multiple times before buying to get a feel for the location and to scope out neighborhoods that appeal to you. If renting out your second property, you may need to find a professional rental company to help ensure your property stays in great condition. Lastly, you need to be aware of the tax implications on your finances. But if you do your homework and obtain a local real estate agent who specializes in second properties, you can have years of enjoyment right around the corner.
Source: Shamrockfinancial.com
Buying a Second Home is a Great Idea
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by admin | Mar 23, 2016 | Investment Property in Florida, Long Term Rental, Real Estate News
Orlando Rentals Pay off for Investors – In many towns across the country, single-family rentals are proving to be solid investments.
A recent report from bond-ratings agency Morningstar notes that “Performance of all single-family rental transactions has met or outperformed Morningstar’s original forecast.” 
Families that might prefer to buy their own homes often still cannot secure mortgage loans and are renting single-family houses to live in instead. That is helping the owners of single-family rentals find new residents –and increase their rents.
Property managers of single-family Orlando Rentals raised their average rents by 3.5 percent in 2015 across the 504 counties that data firm RealtyTrac looked at nationwide. (RealtyTrac looked at three-bedroom units for the study, which are likely to represent rental houses). That rent increase is significantly higher compared to the rate of inflation over the same period.
Thanks to high demand, relatively few single-family rental houses remain vacant. The vacancy rate for rental home portfolios included in bond transactions rated by Morningstar currently ranges from 3.3 percent to 7.2 percent. Morningstar has rated bonds backed by the loans on 91,000 single-family rental properties in 23 separate, single-borrower bond issuances. In three-quarters of these 23 transactions, the percentage of vacant rental houses was less than 5.0 percent.
“Vacancy levels are well within expectations, and rents have exceeded originally underwritten rents,” Morningstar researchers write.
Would-be homeowners fill rental houses
“The increase in demand seems to be driven in part by people who want to live in houses, but cannot get a mortgage, either because they do not have enough cash for a down payment or they have damaged credit,” says Brian Grow, managing director of RMBS at Morningstar Credit Ratings.
These families often include school-age children. Many have strong preferences for specific school districts. The percentage of people aged 45 to 64 years old who own their own home declined in the third quarter of 2015, according to the U.S. Census Bureau.
“They are more likely to have formerly been in a home and like living in a home as opposed to an apartment,” says Daren Blomquist, vice president for RealtyTrac. “But they are also more likely to not qualify to buy a home because of a foreclosure or short sale during the crisis.”
Local realtors expect demand to stay high for single-family rentals, according to Morningstar, which interviews realtors in multiple markets on an annual basis to gauge their opinion of the rental and housing market conditions.
“All of the Realtors felt that the rental demand would continue to be strong in all regions,” says Grow. “It looks like demand will continue to be strong in the near term.”
Property managers have generally spent more on expenses to maintain their single-family rental properties than predicted in the original underwriting.
“Across the board, capital expenditures have been higher than Morningstar’s original forecasts, and often more than double issuer-underwritten capital expenditures,” the firm’s report points out. However, the increased income from rising rents has made up for the rising cost of fixing up these properties.
Source: Floridarealtors.org
If you are interested learning more about Orlando Rentals and are considering purchasing an investment home or if you currently have a secondary home that you are considering renting out we can help. We have a full service experienced property management team dedicated to our owners. Contact us to get more information on our property management services.
by admin | Mar 21, 2016 | Homes, Villas and Condos, Long Term Rental, Mortgages, News, Property for Sale, Property for Sale in Orlando, Real Estate News
Orlando Renters It’s Time to Buy a Home – Homebuyers are expected to outnumber home sellers this spring, which will likely drive up asking prices, says Lawrence Yun, chief economist for the National Association of Realtors® (NAR).
“Given that prices are rising, more people will be pushed on the borderline of conventional mortgage limits and may need a large downpayment or a jumbo mortgage,” Yun told The Wall Street Journal.
Nationwide, the median price for an existing single-family home in January was $213,800 – up 8.2 percent from a year ago, according to NAR’s housing data. Home prices are moving at the highest rate since April 2015.
“There’s a decade of pent-up demand,” says Bob Walters, chief economist of Quicken Loans.
One piece of good news for homebuyers this spring: Mortgage rates are expected to stay low, with the 30-year fixed-rate mortgage not likely to rise above 4 percent before May, says Keith Gumbinger, vice president of HSH.com, though the long-term outlook for mortgage rates is less certain.
As such, lenders predict that the spring season will be a busy one.
To avoid closing delays, buyers need to get into the market sooner rather than later, says Paul Anastos, president of Mortgage Master in Walpole, Mass., a division of loanDepot. Like a traffic jam, “every minute later you leave costs you 10 minutes,” he notes. “Every day, the audience looking for houses increases exponentially.”
Anastos also urges homebuyers to get preapproved for a loan prior to home shopping – a step above pre-qualification. He says that alone could save home shoppers up to 10 days in the closing period. And “If you find a home this weekend, you look highly competitive.”
Source: FloridaRealtors.org
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by admin | Mar 17, 2016 | Long Term Rental, News, Real Estate News
Orlando among top metros for rental housing growth
Orlando among top metros – Online real estate investment management firm HomeUnion has identified the 10 metros with the strongest investment home rental growth in the U.S., and Orlando is on the list.
To rank the metros, HomeUnion looked at 44 single-family rental housing markets nationwide. San Jose, Calif., topped the list and Orlando came in at No. 2.
“It’s no surprise that San Jose leads the U.S. with anticipated rental growth of 7.3 percent, due to healthy job growth and increasingly out-of-reach prices for traditional housing,” said Steve Hovland, manager of research services for HomeUnion. “Orlando’s ranking of No. 2 on our list seems more noteworthy, but not surprising given the furious pace of economic growth in the area over the past two years. Tourism has fueled the region’s booming economy: Orlando has welcomed more than 60 million visitors, as well as job seekers, annually.”
Here are the top 10 metros, their forecast year-end 2016 rents and 2016 rent growth forecast:
- San Jose, Calif., $3,459 7.3 percent
- Orlando, $1,348, 6.1 percent
- Seattle, $4,191, 5.9 percent
- San Diego, $2,307, 5.7 percent
- San Francisco, $4,451, 5.4 percent
- Denver, $1,834, 5.4 percent
- Charlotte, N.C., $1,133, 5.3 percent
- Austin, Texas, $1,787, 5 percent
- San Antonio, Texas, $1,165, 4.8 percent
- Portland, Ore., $1,879, 4.8 percent
Source: Orlando Biz Journal
Orlando among top metros
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