With the Orlando area potentially heading towards a recession/depression, it is essential to know your options when it comes to your real estate asset. The real estate market in the greater Orlando area has been hot for numerous years. (We hope this continues!), but that may not always be the case. With looming economic constraints, many homeowners may become accidental landlords here in the near future. An accidental landlord is someone who ends up owning a rental property without the intent of actually owning a rental property. Accidental landlords fall into owning a rental property due to numerous factors, such as; job-relocation, owning a vacant property, owner needing to cover the cost of their mortgage, and the list goes on. If the economy does not rebound, many homeowners may need to rent their property to stay afloat. Today, we will be covering whether or not renting a home in the Orlando market is a good or bad idea during a recession.
Here at The Listing Real Estate Management, a property management company in Orlando, Florida, we believe it is a good idea to rent your home during a recession. A recession can cause hardship and stress for many homeowners in the Central Florida and Orlando area. With job loss, hours cut, and financial uncertainties, keeping up with your monthly mortgage payments may get tough. Who knows, you may not even be able to sell your home if the recession takes a hit to the real estate market. There is a silver lining in a downturn, there are always renters (more in decline) ready to pay down your mortgage. Below are some POSITIVES about renting your home during a recession in Orlando, Florida.
Influx of Renters
During a recession, you will find an influx of people having to rent in some cases, raising rental rates. With more people searching for rental housing, you can ask more and get more for your rental property in the Orlando real estate market. It is the same scenario as when you list a hot rental property on the market. We see the number of prospects through the roof, numerous potential renters at one showing time, and people calling asking if there are any applications yet. What this does is allow you as the landlord to choose the most qualified renter (make sure you follow the fair housing, state, and local regulations) and rent the property for the highest rental rate. Tenants will always be in the market to rent, so it may be a good idea to take advantage of the situation if there is a recession or financial lul.
Rental Income is a Beautiful Thing
As stated by Aaron Marshall CEO at Keyrenter Property Management in a Forbes interview, "Rental income may be your one steady oasis during a recession." During an economic storm, it is great to look at your bank account and see a direct deposit of rental income. Financial stability is a whirlwind in a recession, but your rental property will always produce an income. Whether you own your rental property outright or rely on the rental income to cover your mortgage, it is simple to sit back and profit. Our rental property owners and real estate investors love sitting back and collecting their rental income without lifting a finger. Property managers in Orlando help assist in making rental income efficient and comfortable.
Rental Payments Covering Your Mortgage
You may find yourself struggling with your mortgage payment due to losing a job or being laid off. Many people get put in a position where they either have to sell for a loss or lose their real estate assets entirely. Don't lose your real estate asset! There are many benefits to owning a rental property in Orlando, Florida. If you need help renting your home, hire a property manager, that is what we specialize in, and we're here to help. When you need to rent your home, we see that in the Orlando market, if your property is clean, and accurately priced your home will lease in 30 days or less! Less vacancy means you can pay your mortgage due or a portion of your mortgage payment.
Keep Your Real Estate Asset
Zillow estimates that over 83% of people love their homes. After all, it is your home. Don't lose your home because you're in an unfortunate or unplanned situation. Allow renting to be your saving grace. After a few years of renting, you may be in an entirely different financial case. You can allow an Orlando property management company to protect your home, so you can move back in when the economic storm settles. The tenant's rental payments will pay down the mortgage and reduce much of the stress of carrying mortgage payments. Allowing a property manager to keep your asset in excellent condition can be a great Welcome Home.
Ride Out The Storm
If the Orlando real estate market gets hit by a potential looming recession, it may be best to ride out the storm with renting. Do not continue to reduce your property or take lowball offers, rent your home, and wait for the market to come back. Keeping your assets will only help you in the long-run. During times of uncertainty, no one knows how long a recession will last or how devastating it will be. Both you and the economy might come right back; this allows you to keep your real estate asset and equity in your property.
Orlando Property Management: Conclusion
We are hoping that a recession in the Orlando and Central Florida area does not happen. But if it does, it is not the end of the world. You have options, take a deep breath, and think about your real estate options. Do not make decisions on a whim. If you become an accidental landlord, we are sure you will love all the benefits that come with it. If you have any questions about how a property management company in the greater Orlando area can help assist, feel free to reach out to The Listing Real Estate Management. We are your trusted choice for property management in Orlando.