Here’s what current and aspiring investors should know about the market.
What’s been going on with rental properties here in our northeast Florida market? Recently, a lot of people have been asking me about the lack of inventory in the sales market and how that pertains to the rental side of things. Unfortunately, resale buyers and folks who are on the hunt for rental properties are equally disadvantaged right now. When there are no rental properties on the market, that means rents will be on the rise—just like home prices. But it’s a bit more complicated than that; there are many reasons why we’re seeing rents increase in our area. Here are the top contributing factors:
1. Jacksonville is a growing city. More people are finding out about all the perks that this city has to offer, whether it’s in regard to location, recreation, investments, low taxes, or general lifestyle. There’s simply more demand for every kind of property on the market.
2. The cost of labor. Maintaining a home requires more money these days, and that’s largely due to the rising costs of materials and labor.
If you’re an investor who already has property, then you’re likely in a great position. At a time like this, it’s critical that you take a look at what you’re doing to maximize your property’s potential to generate more in rent. If you have a property manager, I’d ask them how you can get more; if you don’t have a property manager, you might want to give me a shout. Make sure you’re always getting the most out of your asset.
“At a time like this, it’s critical that you take a look at what you’re doing to maximize your property’s potential.”
On the other hand, if you’re someone who’s looking to get into the rental game, know that it’s doable but quite difficult. You can certainly get in, but you probably won’t find the steal of a deal that you might’ve found seven or eight years ago. Back then, the market was low, and there were all sorts of properties ripe for the taking. That’s just not the case anymore.
If you have further questions about how you can acquire or maximize the return of rental properties, don’t hesitate to reach out by phone or email. As always, I’m here to be a resource for all your other buying, selling, or investment needs, too. I’d love the opportunity to speak with you soon.