Why today’s rental market is the ideal time to own a rental property in Tampa Bay.

The voracious demand for housing in the Tampa Bay Area is reaching new heights. Inventory is at its lowest in decades. That’s great news for home sellers. But what if selling your home right now isn’t an option?

You can still benefit from this strong seller’s market by renting your home out to eager tenants. There are many awaiting your listing. Not only is the Tampa Bay housing supply tight but so is the rental market. The rarity of both the single-family home and rental market converging is a rare one indeed, but it’s happening for a number of factors, not just COVID-19.

Higher Rent, Higher Cash Flow

Now has never been a better time to rent out a single-family home property in Tampa Bay. According to RentCafe, the median rental rate in March 2021 was $1,432 per month. This is up from previous months. The median rent in the metro area was about $1,375 a month in January 2021. That’s a 6.9 percent increase compared to January of last year, according to Realtor.com data which included an analysis of 4,000 rental properties, including single-family properties. However, the increase in rental rates isn’t unusual for the Tampa Bay Area. This area is notorious for higher rents due to the beauty, job market, and excellent schools.

Tampa Bay’s experience is far different from other popular cities like San Francisco, Boston, and San Jose, where the rent has moved in the opposite direction. According to Realtor.com, the nation’s 50 largest metro areas had drastic rent decreases. What’s unusual is that in these metro areas, as the rents went down, the home prices went up simultaneously. This is a bit of an anomaly, but the pandemic has achieved many firsts this and last year.

The Tampa Bay Area home prices and rental rates have increased in recent years, surpassing the national average, ranking as the sixth highest in the country, according to CoStar Group (real estate data company). So, if you choose to transform your home into a rental property, it could be a lucrative choice that will generate a positive cash flow for years to come.

Tampa Housing Supply Is at Record Lows In Major Areas

The pandemic has put more pressure on an ever-shrinking housing supply across the nation, especially in Tampa Bay. The beautiful landscape, thriving job market, and safety attract many from out of state and within the state to the Tampa Bay Area. However, when the pandemic transformed many workplaces into remote workplaces, this allowed for a more mobile workforce. When you can work from wherever remotely, you have more flexibility in choosing where you’d like to live. Naturally, most people enjoy the warm and sunny coastline of Florida. What better place to work than in Tampa Bay?

The mobility of today’s workforce is not the only reason that the housing and rental markets are tight now. It’s been a gradual progression over the past three or four years. The housing supply has tightened so much that an open house now results in streets filled with parked cars awaiting their turn to tour the home for sale. It’s a dream come true for those who want to sell their homes now.

Those who want to hold onto their home are also a great opportunity to score some positive cash flow in rental income. This may appeal to you if you own a second home that you only use occasionally or seasonally.

– Marie Negron

Why not turn that home into a profit-generating rental property?

The real estate professionals at HOMM can show you how. We’ve advised many homeowners who wish to turn their second homes into rental properties, and many have stayed with us for decades because of our expertise and accessibility. We genuinely enjoy sharing our knowledge of the Tampa Bay Area rental market and enjoy seeing our clients benefit financially.

As one of Tampa Bay’s premier property management companies, HOMM Real Estate Services provides professional rental services, tenant screening services, and much more. We do the work so that you can enjoy your investment passively without the fuss of interacting with tenants and property management tasks. Contact us today at (813) 684-5954 for more information!