Straight from the Top!

Demand For Rental Homes Increases

A good sign for investors is that according to Freddie Mac, the demand for rental houses is increasing. For the previous 12 month period, the Census Bureau reported an increase of 1.4 million households that moved into rental units. At the same time, the homeownership rate fell by about 1.5 percent. The largest percentage decease was in the 25-29 year old category.

How does this news affect you personally? If you are an investor in residential real estate, you should see a strong demand for rental houses. The downside to that is the Tampa Bay market is that we have seen quite a few tenants lose their jobs and income and be unable to pay their rent. As a property owner, the best thing you can do in make sure you have an adequate amount as an escrow deposit and insist the tenant stay current in their rent payments. If they are late, make sure you post the notice on time and beware of taking partial rent payments. Sometimes tenant may not be able to the rent due to circumstances beyond their control, but the question is, “If you have a mortgage, will you be able to continue to make your payments on time and protect your credit?”

Actually, the best thing you can do is hire a professional property manage to help safeguard your investment, make sure an attorney prepares you leases and is available should you need legal advice or assistance. If you have questions related to rentals and property management, please feel free to give me a call.