When you’re ready to invest in a Tampa rental property, choose a home that matches your investment goals. You’ll want to consider the location, the price, and the condition of the home, but before you even consider those things, you’ll need to decide what type of investment property to buy.
There are several good options, and the best types of properties are single family homes and small multi-family buildings. These are the properties that will earn you the most and attract the best Tampa tenants.
Tampa Property Management: Investing in Single Family Homes
First, let’s talk about single family homes. These properties make the most reliable rentals. They have a high demand, and you’ll have no problem renting your house to a great tenant. You are likely to have a better tenant retention rate as well; tenants will stay in place longer when they’re renting a house.
With this type of property, you can count on better appreciation over time. You’ll rent your property faster and likely for more money. That’s good news for your ROI.
Condos and townhomes can often be popular investment options, but you have to be careful. The HOAs in those communities can sometimes be restrictive, making it hard to rent out your property successfully. They also come with monthly fees, which can cut into your ROI.
Tampa Property Management: Investing in Multi-Family Units
Small multi-family units come with their own benefits. These properties are usually cheaper to acquire, and you also have a built-in defense against losing too much money on vacancies. If one unit is vacant, you still have rental income from the other units. You don’t have to worry about losing money.
Your tenant pool will be a little different with multi-family units. You might find a more transient tenant who stays for one year but not longer. As a Tampa landlord, you’ll need to be prepared for this when you’re renting out a duplex, triplex, or a small apartment building.
Tampa Property Management: Investing in Vacation Homes
There are some Tampa investors who are turning to vacation properties. This is due to the success of the Airbnb model in several cities, and the fact that Tampa is an area that attracts a lot of tourists. You can get more money for a vacation rental per-night, but remember that these are largely seasonal, and you can face long vacancy periods. You also have to pay taxes, cleaning fees, and utilities. You’ll need to provide a furnished home and all the amenities that travelers look for, such as Wi-Fi and nice linens.
In the long run, owning a vacation property can cost more money and take more work. Each community will have its own restrictions on these properties, and you’ll never really know what kind of tenants you’re getting with each booking.
As you can see, Tampa investors have a lot of options. For more information or help deciding on the right investment property for you, please contact us at Rent It Network.