As an Orlando landlord, you may have fallen into owning a rental property by chance rather than choice. As a professional property manager, I highly recommend owning as much rental property as possible. If you are a seasoned rental property investor, you know all the benefits of owning a rental property in Orlando.
Whether your rental property investment is to cover your mortgage, produce high cash flow, or just another outlet of your investment portfolio. Any instance, you should know the ins and outs to maximize your rental property potential.
A solid rental property neighborhood should; 1. Increase in Rental Rates Year Over Year and 2. Continue to Appreciate.
There are numerous factors to consider when analyzing if a neighborhood is secure for your rental property investment. Today we'll cover how to tell if your Orlando neighborhood is a suitable investment property for the long run in Orlando and Central Florida.
Analyze Historical Data & Price Trends
The most critical aspect is fact and existing data. Meaning, you must first look at what your neighborhood is commanding on a purchase price. Are prices of real estate assets continuing to rise or fall, are rental rates rising or falling? In Orlando, the real estate market is hot; according to the Orlando Regional Realtor Association, inventory continues to fall, causing prices to rise around Central Florida, but you must make sure your neighborhood is on the rise. To determine this, you may want to look at your neighborhood's days on the market, the sale price, average rental rates, and how long a rental property lasts on the market.
In Central Florida, neighborhoods and areas can change home prices and rental rates drastically. You can have one gated community on one side of the road and a trailer park on the other side of the road. Especially if you are looking at rental rates in the Central Florida area, neighborhoods and areas can vary greatly. To determine how your community is trending, up or down, you may want to reach out to an Orlando property manager to determine better which way rental rates are trending.
Up & Coming or Down & Out
If your home falls in an area that is continuing to develop, your real estate asset will be an excellent long-term investment in Orlando. Learn about the City of Orlando's development plans here. People want to live in an area and neighborhood that are conveniently located to Shopping, Dining, Work, and Play. There are tons of employment opportunities and fortune 500 companies currently in the Orlando area, such as Darden Restaurants, Wyndham Worldwide, AAA, and Tupperware Brands; many more companies are flocking to Central Florida. If your home or rental property has close employment opportunities, it will likely be on the Up & Coming list.
If your rental home is in a developing neighborhood or area, your rental property will continue to appreciate, and rental rates will increase.
School Zoning in Orlando
In Orlando and Central Florida, neighborhoods, zip codes, and areas will be zoned to specific schools. In Orange County, you can search which school your neighborhood is zoned for here. Are the area or neighborhood occupants happy with the school system? Do people move from the community into a different school district?
Map Courtesy of OCPS.
If people move to specific neighborhoods to enter a better school district, your area is family-friendly, and the community is constantly improving.
Download the Orange County School Zone Maps PDF here.
Public Amenities and Neighborhood Amenities
The City of Orlando has numerous public parks; if your neighborhood is close to public parks, people will want to live in your area. Easy walkability makes residents and tenants pay more for an excellent and convenient home location. The City of Orlando keeps the public parks in perfect condition, and many residents take full advantage of the outdoor activities.
Does your Orlando Neighborhood have fantastic amenities or no amenities at all? If your neighborhood has excellent amenities, your community will continue to appreciate and secure long-term investment. Families seek neighborhood amenity centers for easy access to swimming pools, playgrounds, green space, dog parks, etc. Tenants are willing to pay more for these amenities.
Ask Neighborhood Residents
Your neighbors and residents in Orlando can often tell you all you need to know about the neighborhood or area. If they are boasting about positive things such as the HOA management provider, local area parks, amenities, etc., chances are you are in a neighborhood that will be great for the long term.
If your neighborhood is highly desired and home prices continue to rise, home buyers and tenants typically start to seek living areas around the focal point. There are focal points and cities such as Winter Park, Lake Nona, Windermere, Winter Garden, and Baldwin Park that have city hubs in Orlando and Central Florida. You don't have to pay the price to be on the main street; home buyers and new tenants expand their search to nearby areas and properties. You can have a nearby city hub that will continue to expand outward and appreciate.
Local Crime Rates in Orlando
Everyone wants to live in a safe neighborhood, and if you are seeking long-term investments, the crime rate is significant. The current crime rate is essential, but it is also essential to look at how your neighborhood's crime rate has changed, whether it is getting to be a safer neighborhood or trending negatively.
Screenshot and Map Courtesy of Neighborhood Scout.
Ideally, your neighborhood should be getting safer over the years. A safer neighborhood equates to higher rental rates and continued appreciation for your community and home. We have done the research and provided our Top 5 Orlando Areas for Buying a Rental Property. These areas will continue to be secure investment areas and are incredibly safe, containing low crime rates compared to surrounding areas.
Check your neighborhood crime rate here.
Talk With Agents & Property Managers
Local real estate agents and property managers are constantly looking at specific areas in Orlando that create excellent long-term investment opportunities for their clients. As a top-rated property management company in Orlando, we advise our homeowner and real estate investors on the best neighborhoods for long-term investments.
Are you interested in investing in the Orlando or Central Florida area? If so, you'll want the help of a local real estate agent and a property management company. Contact The Listing Real Estate Management today to learn more about how we can help you make the best decision for your rental property portfolio or a free consultation. Cheers!