Learn more about the benefits of purchasing an investment property in Orlando
An Orlando investment property offers many benefits to local, out-of-state, and international investors and attracts new tenants every year.
Orlando has seen a lot of growth in the past decade and is only continuing to grow. The Orlando metro area growth rate is the second fastest of the 30 largest cities in the United States. From 2018 to 2019, the population grew by 2.4% which is four times the rate of growth for the United States as a whole. 
Continue reading to learn about the Orlando real estate market and why an Orlando property is the perfect investment.
What are the benefits of owning an Orlando investment property?
There are many benefits to owning an investment property in Orlando, including:
- Passive income. This may be one of the biggest benefits to owning an investment property. A passive income means that you have a recurring cash flow that requires little to no effort which also provides you with additional financial security.
- Tax benefits. The IRS allows for tax deductions on many expenses related to your investment property, such as improvements as well as ordinary and necessary expenses. You can deduct your insurance, interest on your mortgage, maintenance costs, and improvements for any wear-and-tear to your property.
- Appreciation. Appreciation is an increase in the value of a property due to improvements. This gives you the option to sell when the time is right to maximize your profits. It’s also a good idea to research the appreciation potential in Orlando neighborhoods and surrounding cities.
Examine Orlando real estate trends
The real estate market trends of any city reveal important information to investors on whether purchasing a rental property in that location will be profitable. It’s important to have a strong understanding of the state of the market, population patterns, and other economic factors.
Here are some of the recent key Orlando market trends:
- The 2020 census revealed that the metropolitan area of Orlando has a population of over 2.6 million. 
- As of 2019, the Gross domestic product (GDP) of Greater Orlando is $147 billion, an increase of over 60% since 2009. 
- The average cost of rent in Orlando is $1,611, with only 6% of rental properties under $1,000. 
- 45% of housing units in Orlando are rented. 
- The Zillow Home Value Index for Orlando is $315,152, an increase of 16.4 since last year. 
Choose the right location
Orlando has many surrounding cities and suburbs, so it’s important to find a neighborhood within the Greater Orlando area that matches your investment goals.
While Orlando may be known for theme parks that attract a lot of property owners looking to rent out short term rentals, there are also many neighborhoods in Orlando that appeal to long-term renters.
Orlando is home to many growing suburbs that provide investors with excellent opportunities. Since 2010, Ocoee’s population has grown 35.1% and Winter Garden’s population is up 32.5%. 
Orlando’s neighborhoods have different average rent prices that are important to look at before purchasing a rental property. Some of the more expensive neighborhoods include College Park, Baldwin Park, and North Orange, with the average rent being $2,028, $1,976, and $1,831, respectively. There are also more affordable neighborhoods, such as Mercy Drive and West Colonial, with the average rent in these neighborhoods being $1,062 and $1,189, respectively. 
Understand the local laws and regulations
If you are an out of state or overseas investor, it’s important to be well-versed in Orlando and Florida property laws and regulations.
Florida is considered a landlord-friendly state, meaning that the laws are not geared towards tenants:
- Rent control. A lot of other large real estate markets, such as California have rent control regulations in place, but Florida does not have any rent control laws, allowing landlords to raise rent. There are laws about how you must inform your tenants of a raise in rent, including mail or personal delivery.
- Security deposit. There is no limit to how much landlords can charge their tenants for a security deposit. This allows investors to charge an adequate amount that will ensure they will not lose money should the tenant cause damages after they move out.
- Late fees. There are also no restrictions on late fees when tenants do not submit their payments on time.
- Evictions. Florida law favors the landlord in the case of evictions. This is a big factor to look at when considering investing in rental property in any state because if this law favors the tenant they could be living in one of your units for months without paying.
- Property and state taxes. Florida has low property taxes, which helps keep more money in your pockets. There is also no state tax in Florida.
Hire a local property management company
While it’s always important to be familiar with local laws, it can be time consuming and challenging to stay on top of it all while managing your property. A local Orlando property management company can provide expertise on local laws, regulations, rental trends, and important market developments.
Rental Heroes has been managing properties across the Greater Orlando area for over 12 years. We help local and international property owners enjoy the benefits of their real estate investment with comprehensive property management services.
Looking for a property management company in Orlando?
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 we can to keep your tenants happy.
Our comprehensive property management services include:
- Marketing and showing your property
- Tenant screening and evictions
- Rent collection and remittance
- Property inspections, maintenance, and repair
- Monthly financial statements
- Expert advice on how to maximize your return on investment
- Manage relationship with Homeowners Association (HOA)
- Prepare rental units for new tenants.
Ready to choose the right partner in property management?
Contact us today!