Top five reasons to purchase investment properties in Orlando, Florida

Owners

September 26, 2022

Explore why Orlando is the perfect market for property investors seeking a high return on investment

Orlando investment properties provide real estate moguls with many unique benefits, such as a high return on investment (ROI) and low tax burden.

Continue reading to learn the top five reasons Orlando is the prime market for rental property investments.

#1: High population growth

The Orlando-Kissimmee-Sanford metropolitan area is the third largest metro area in Florida, and Orlando is consistently rated among the fastest-growing cities in the United States. [1]

According to the 2020 census the Orlando metropolitan area has a population of over 2.6 million people, in 2010, this same area had a population of 2.1 million people, showing an increase of over 25%. [2]

The Orlando area is also only expected to continue this strong growth rate—the 2030 projected population of the Orlando area is 5.2 million. [3]

This strong level of population growth is going to continue to bring renters to the Orlando metropolitan area for many years.

#2: Growing job market

Along with the strong population growth in the Orlando area, the job market is also growing. Forbes ranks Orlando as the 26th best place for business and careers in the United States amongst a list of 200 cities. [4]

The Orlando metro area also has a strong gross domestic product (GDP) of $144 billion, an increase of over 53% since 2010. [5] The Greater Orlando area is also expected to create 500,000 more jobs in the next ten years. [3] This growth in the number of jobs in Orlando will bring many renters to the area, making it a perfect place to make a real estate investment.

#3: Strong renters’ market

As of July 2022, the average rent price in Orlando is $1,937, and 40% of apartments’ rental rates are priced over $2,000. [6]

63% of the households in Orlando are renter-occupied, which is a great opportunity for property investors as there will be no shortage of renters wanting to rent your units. [6]

#4: Landlord-friendly state

Florida as a whole is known as a landlord-friendly state. Landlord-friendly states typically have little to no rent control laws, no state income tax, and rising housing costs—Florida has all of these.

Florida has no rent control laws in place and there is also no limit on the late fees that owners can set for their renters. There is also no limit on how much a landlord can charge for security deposits, but they must return the deposit 15 to 60 days after the renter moves out of the unit.

#5: Booming economy

Orlando is one of the most popular tourist destinations in the United States. In 2021, 59,301,000 people visited Orlando with 2,075,000 of those visitors coming from overseas. [7]

Orlando tourism also generates around $75 billion a year. Tourist dollars then go back into the local community through schools, parks, arts, and safety, which draws people to move to the Orlando area. In Orange County alone, tourists typically account for over 50% of all sales tax revenue. [8]

The tourism industry thrives in Orlando, but there are also other economic factors that make the Orlando area attractive to investors. The sales tax rate in Orlando is 6.5%, while the national average is 7.3%. Florida also has no state income tax, which allows investors to gain a greater ROI and save a lot of money on taxes compared to other states. [9]

Looking for an Orlando property management company?

At Rental Heroes, we are property investors, just like you! We understand what’s most important—a well-managed property that generates a steady, reliable source of income.

Our local knowledge helps us to proudly manage hundreds of units across Central Florida, and we’re committed to doing everything to keep your tenants happy by handling maintenance requests quickly and responding to potential tenant issues.

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