Tampa Property Management Blog

4 Mistakes to Avoid When Investing in Rental Property in Tampa Florida
rental property investment in Tampa Florida

Currently, Tampa is one of the most lucrative cities in Florida when it comes to real estate, with homes having a median listing price of $344,900. According to the Tampa Bay Business Journal, home prices are expected to grow by 7.5% per year. This means that rental property investment in Tampa Florida can be a great way to earn passive income over time. However, it can sometimes be challenging to get a full return on your investment. With that in mind, here are four mistakes to avoid when investing in the Tampa property market.

Failing to Research the Market

Tampa is a large city, and the real estate market varies from one area to another. For instance, while some areas are serene and welcoming, others have higher crime rates. When looking for a rental home, tenants usually look at factors such as the crime rate, availability of public amenities, and proximity to major infrastructures. This means that if you invest in a prime area, you are more likely to attract more tenants and increase your return on investment. To achieve this, it’s important to conduct adequate research about the real estate market in different parts of Tampa. Thorough research will also give you much-needed information about the expected trends of the market, a factor that should typically also impact your decision-making process.

Managing Property by Yourself

Property management entails tasks such as collecting rent, issuing lease agreements, performing repairs and maintenance, advertising single-family rental homes, resolving conflicts among tenants, and handling tenants’ complaints. While managing your single-family rental home by yourself isn’t such a bad idea, you’ll find it difficult to satisfy the needs of your tenants, vendors, and other parties involved, especially if you have another job. For instance, if a tenant needs urgent repairs, it will be difficult for you to attend to them if you’re busy at work, and this will likely create unnecessary stress.

Failing to Plan

After investing in a prime area, it might seem like you won’t need to worry about much else. However, changes in the market can occur and affect your business negatively. Additionally, in case of natural disasters such as hurricanes, your property can be damaged and result in huge losses. While planning may not necessarily prevent emergencies or disasters from occurring, it can prepare you enough to deal with any unforeseen events whenever they happen. Purchasing rental property insurance can help protect your property in the event of major damage and prevent you from losing money.

Failing to Thoroughly Screen Tenants

As a rental property investor, tenants are typically your greatest assets since they directly determine your income. It’s important that you lease to credible tenants to avoid the possibility of major problems in the future. Performing a background check, a credit check, and contacting references can give you a good idea of what kind of tenants your applicants might be.

Conclusion

When it comes to property management, these are four common mistakes that property owners make. However, they can be avoided by hiring a property management company. Specialized Property Management Tampa is a team of rental property management experts that knows how to help you get the most bang for your buck. We help you do everything from tenant screening to performing preventative maintenance. To learn more about what we do, call us at 813-548-3045 or check us out online.

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