If you’ve always set your sights on Florida’s short-term rental market, it’d be best to begin your journey from Tampa for many reasons. Firstly, Tampa is a renowned business city filled with tall office buildings and beautiful beaches for relaxation.
Presently, the Tampa real estate market is reviving. Thus, savvy investors are taking advantage of the boom. Buyers’ competition is increasing daily, and as a new investor, you need to do proper research when searching for an investment property in the city.
Hence, most investors are having difficulties investing in Tampa because they lack sufficient knowledge on how to find great properties in strategic locations in the city.
Suppose you’ve tried unsuccessfully to find great deals in Tampa’s short-term real estate market, or you’re still planning to do so; here are some tips on investing in Tampa short-term real estate effortlessly.
You can always visit the STS website to check the short-term rental market and the current industry trends.
How to Find the Best Short Term Rental Properties in Tampa
- Think About Income
Unlike a long-term rental, where you have lower rent but continuous lease, with a short-term rental, you’ll enjoy higher rent. However, your expenses will be higher too.
For instance, a short-term rental might not be continually rented year-round. More so, it might come with higher laundry fees, maid fees, and management fees. So ensure you consider this factor before deciding on a short-term rental property to buy.
- Consider the Area
Short-term rental works better in specific areas like around a beach or other popular tourist attraction spots, such as Tampa Bay.
But before starting, ensure you’re legal and permitted to use that property for a short-term rental based on the location. There are restrictions in some parts of the town, so make sure your condo association and HOA rules and regulations permit short-term rentals. Don’t forget to check the municipal codes.
- Insurance Consideration
One major tip on investing in Tampa short-term real estate market you mustn’t disregard is insurance. Florida and, in extension, Tampa has an unstable insurance market. For instance, you can lose hazard coverage as a short-term rental operator if your property is vacant for over one month. So ensure you research all these before signing a contract.
Buying an Investment Property in Tampa
There are numerous real estate investment opportunities in Tampa, Florida. However, the property you buy will depend on your reasons for investing. You probably might want to earn so much rental income from the investment for a short while or rent it out for an extended period while the value appreciates.
Regardless of your reason, there’s always a market for you in Tampa. However, if you’re considering venturing into the short-term market, it’d be best if you check out the short-term rental market analysis.
What Makes Tampa So Great for Real Estate Investors
The following are some of the reasons investors are rushing to buy up properties in Tampa:
- Affordable Properties
For the past three years, Tampa real estate market has maintained its position among the hottest market in the country due to its investment properties’ relative affordability, especially for first-time buyers.
Therefore, your investment in Tampa can yield more for you than in many other cities. What’s more? You can buy valuable properties at affordable prices.
- Florida is Tax-Friendly
Before investing in the best short-term rental markets like Tampa, you’ll need to analyze your tax situation. Although you’ll need to pay the state franchise tax, your tax burden will be low compared to other similar states because of Florida’s zero individual income tax.
This reason is why investors are rushing to buy up properties in Tampa. No investor would want to be smothered by high tax bills that are bigger than their mortgage payment. While you might also experience rapid growth in other markets, you probably will not enjoy a similar low tax burden.
- Lower Living Costs
While Tampa is a big city, the residents enjoy a lower cost of living compared to other parts of Florida and similar areas in other states. Thus, people hardly hesitate to move to the city.
Most importantly, Florida has a diverse population creating an engaging and inclusive living environment.
- Considerable Property Appreciation Rates
Short-term rental trends 2021 have shown that Tampa real estate is speedily appreciating. Compared to the last decade’s statistics, Tampa real estate appreciated over 32 percent despite the nationwide housing market downturn resulting from the pandemic.
There’s no indication of property depreciation anytime soon. Thus, you’ll always have that financial edge over investors in other markets.
Best Area in Tampa to Buy Rental Property
Suppose you’re undecided about the neighborhood to buy investment properties in; we recommend FishHawk, Riverview, and Brandon.
Although outside Tampa’s immediate downtown area, these suburbs are close to the city center. Housing development offers attractive prices, and the neighborhood has quite a considerable number of recreational opportunities. There’s always an increasing demand for rental properties in these neighborhoods.
Check out Westchase and South Tampa if you’d want properties very close to the city center in sought-after neighborhoods.
Suppose you intend to move a little outside the city and prefer quieter neighborhoods closer to the water and affordably priced; consider New Port Richey, Tarpon Springs, Trinity, and Palm Harbor. Your success from investing in Tampa short-term real estate might probably depend on the location you choose, so choose wisely.
Is Tampa, Florida, a good place to invest in real estate?
For three years and counting, Tampa real estate has continued to rank higher as one of the hottest markets. The city enjoys a booming economy and affordable investment properties, resulting in equity growth and generous cash flow.
Is it a good time to buy a house in Tampa, Florida?
Due to the pandemic, interest rates have hit their lowest now; thus, we advise you to buy now if you want a piece of Tampa, Florida’s real estate market. Once things start rebounding, interest rates might go up again.
Is Tampa, Florida, a buyers or seller’s market?
Presently, Tampa’s real estate market is a sellers’ market and very competitive. Thus, demand from buyers is more than the number of homes for sale. It’s uncommon for sellers to get 20 to 30 offers on a home.
Is Florida good for real estate investing?
Fondly referred to as The Sunshine State, Florida’s weather is one reason most investors rush to buy properties in the state. More so, properties are affordable, and families with kids can always stay near Disney World for a perfect dream holiday.
How much does a house cost in Tampa?
There are several investment properties an investor can buy in Tampa. However, they depend on the neighborhood. You can get properties for as low as $100,000 and as high as $380,000.
Why is Tampa real estate so expensive?
Tampa is presently a hot seller’s market, and property prices are hitting the roof, which is advantageous for sellers. This current phase is caused by increasing demand for houses and the accompanying shortage of supply.