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The Florida property market has been on a serious hot streak in the last few years.
On average, property prices around Florida are up around 58% since the start of the pandemic back in 2020. In simple terms, investing in Florida real estate would have been one of the best investment decisions you could have possibly made.
With this hot streak finally starting to slow down, it may be the perfect time to invest in the local property market. Better yet, the right Florida property management company can help make investing and managing your property portfolio a walk in the park.
Looking for a good property management company in Florida? You’re in the right place. Here’s a complete guide on everything you need to know about property management services in Florida.
Why Invest in Florida Real Estate?
The Florida real estate market has been growing at record rates over the last few years. While the rest of the country lagged behind, the local real estate market seemed completely immune. This immunity was a direct result of people deciding to move to the state, driving up demand for housing in the process.
Florida is a great state to live and invest in. While you may think the best part about Florida is the year-round sunshine, there are also a few economic reasons for moving to the state. The most important benefit that people move to Florida for is the favorable income tax rates.
Whether you have a business or not, moving to Florida can save you thousands of dollars every year. This is because the state of Florida has an incredibly low business tax rate of just 5.5% and a personal income tax rate of 0%.
If you think the state probably makes up the shortfall with a sales tax, the sales tax rate is only 6% in Florida. This means that the cost of living is not too far from the national average, making Florida even more attractive. The savings and lifestyle on offer are why people have flocked to Florida in numbers over the last few years.
Investing in Florida Real Estate
As mentioned above, the cost of living is incredibly affordable in Florida due to the massive tax savings the state offers its residents. Even though the state does have sales and state taxes, the corporation tax rate is also very low. This is why investing in Florida real estate is such a good investment for both corporations and individuals.
The demand for property in Florida has risen immensely over the last few years. This increase in demand has helped increase property prices throughout the state. In addition to this, the increased demand has also increased the average rental income in the state.
This means that if you’re thinking about investing in rental property in Florida, you can make more money from the property every month. While property prices have gone up substantially, many areas are still below the national average.
This is because the property in Florida was heavily undervalued before the pandemic. With this being said, the property market still has a long way to go to reach the levels we see in areas like New York City and San Francisco. This means that there is still a ton of upside potential when it comes to investing in Florida real estate.
How To Invest In Florida Real Estate
Whether you want to buy a home for your family or a rental unit for an additional source of income, Florida is the place to invest. If you think that it’s going to be incredibly difficult to invest in the local real estate market, think again. This is because working with a real estate company can help you every step of the way.
Real estate agents and property management companies can work with you to either sell or buy property in the area. Real estate professionals have the experience and the network to help you find your dream home in the blink of an eye. In addition to this, property management companies are there to help you grow and manage your property portfolio for you.
In this way, you can save time and money while still creating a profitable property portfolio in the state of Florida.
How a Property Management Company Can Help You Invest in Property
Working with a real estate agent can help you buy or sell property in the blink of an eye. However, property management companies can partner with you to help manage your property over the long term. This means that they can help you find tenants, collect rent, and even do essential maintenance to keep your investment property looking great.
While the exact property management services may vary from company to company, the aim is to help make your life as easy as possible. When managing a property portfolio, the most complicated aspect is to find tenants and collect rent. This is where a property management company can help as they can do the heavy lifting for you.
If your rental property is vacant, the property management company will advertise the location and screen tenants for you. In this way, you will only need to meet with serious candidates that have already been vetted. All you have to do is sign a rental agreement and the rest of the admin will be taken care of by the property management company.
This saves you a lot of time but also allows you to find good quality, long-term tenants for your rental properties. This makes it worth the fee that property management companies charge.
Finding The Right Property Management Company
As you can see, partnering with a property management company can help you make the most out of your real estate investment. However, it’s important to find the right property management company to partner with in the first place. Here are a few tips to help you.
1. Start Local
When it comes to finding a property management company, always go local. This is because local companies have a fundamental understanding of the property market in that area and are the best people to help you invest locally. When searching for companies online, make sure that they have an office in the area that you can visit in person.
2. Do Your Research
It’s important to do your research before making your final decision. This can include talking to other property investors in the area or even a few clients of the property company in question. This is the best way to get a fundamental understanding directly from individuals that have first-hand experience working with them.
3. Ask Questions
It’s completely normal to have a meeting with a representative or a real estate agent from the property management company before finalizing any agreement. When you’re at this meeting, don’t be shy to ask questions. Asking questions is the best way to find out if they are the right partner for the job.
You can ask questions such as how many properties they manage, how many clients they have, when did they start, how many people work for them, and how much their services cost. This can give you a good idea of the entire company from the ground up.
4. Ask About Fees
As mentioned above, it’s important to ask about the property management fees beforehand. When asking about the fees, it’s vital to understand how the fees are calculated. This is because some property management companies may charge a fixed percentage of the rent they collect while others may set a fee every month regardless of the rental price.
Understanding the differences can help you plan effectively.
Essential Florida Property Management Services
When evaluating a property management company, it’s vital that you take a look at what services they offer. This is essential to determine exactly how they can help you manage your property. Here are a few of the most essential property management services to look for.
1. Finding The Right Home
Whether you want to buy a home for the first time or expand your portfolio, it’s important to find a partner who can help you through the entire process. This process includes helping you navigate the local property market to help find something that can fit your budget and ambition.
2. Negotiate On Your Behalf
When it comes to buying a home, negotiations are incredibly important. This is the part of the deal where an experienced real estate agent can help lower the total cost of the home. If you were selling a property, your agent can negotiate to help get the most for the property.
Whether you are expanding your property portfolio or finding a tenant for your rental apartment, paperwork cannot be escaped. This is another area where professionals can help save you tons of time. A holistic property management company can help create, organize, and even file all the paperwork for you.
This prevents any small mistakes that you could have made, but also saves you tons of time.
4. Finding Tenants
Finding a tenant for your home is a lot more difficult than you may think. This is because not all tenants are the same. When it comes to your rental property, you want to make sure that you can find a reliable, trustworthy, long-term tenant.
This is because long-term tenants are the best way to maximize the revenue you can make from the property. Every time a tenant moves out and another one moves in, there is some lost time between them. The lost time also means that you could lose a few months’ worth of rent.
If you were to have a new tenant every year, it means that your rental property loses a few months of rent every year. Having a lower turnover rate means that you can maximize your rental income every year without having to worry about the costs associated with finding and moving a new tenant into your property.
Property management companies offer property marketing services to find potential tenants but also screen them for you so that you can find a trustworthy, long-term tenant. This means that the property company will do a background check and even look at their credit score before you even meet them. This saves time but also helps you find the perfect tenant for your property.
5. Managing a Property Portfolio
Whether you have a single investment property or an entire portfolio, you want to make sure that the property management company you use can handle it all. This is essential as you want to know that you can grow with the company you partner with. It would be incredibly difficult and stressful to have to find another partner because your portfolio is too big or complex.
This is why scalability is so important when finding the right property management company. A great way to evaluate whether the company can scale is to look at other property portfolios that they currently manage. If you have a few homes but the company has another client with hundreds of homes, you know that you’re in good hands.
Invest In Florida Real Estate Today
Florida is one of the most diverse and popular real estate markets in the country. While real estate around the country has been taking a dip in the last year, the Florida property market is still a great investment. Whether you’re looking to move or just invest in rental property, a Florida property management company can help every step of the way.
Looking to buy or sell property in Southwest Florida? The experienced real estate agents at Brista Realty can help. Reach out to us today for all your real estate needs.