Florida, known for its gorgeous beaches and top-of-the-line theme parks, boasts a robust economy supported by business-friendly laws that have attracted rental investors in great numbers.
Investors can take advantage of this boom by investing in long-term single-family homes or vacation rentals; both offer high yields with excellent returns on investment.
Top Reasons to Invest in Rental Properties in Florida
1. Strong Economy
Florida is widely considered one of the strongest economies in America, boasting steady job growth and an active real estate market that has led to high demand for rental properties and rising property values.
Miami is known for its bustling tourism industry and luxurious lifestyle, drawing millions of tourists each year and fueling strong demand for luxurious vacation rentals – creating a lucrative investment opportunity for anyone interested in purchasing short-term rental properties in the city.
Jacksonville has seen an increase in single-family home building permits of 35% year over year, contributing to Jacksonville’s growing rental inventory and helping investors achieve an improved cash-on-cash return on their investments.
Florida offers investors many advantages when it comes to landlord-friendly laws, with nonpayment and eviction processes typically completed within 30-45 days. It’s essential that investors familiar with Florida real estate laws conduct thorough research on local landlord laws to ensure compliance. A real estate agent who specializes in investment properties may be of invaluable help here.
2. Low Unemployment Rate
Florida boasts one of the lowest unemployment rates in the U.S., making it an attractive location for investors searching for rental property investment opportunities. Orlando in particular stands out as a particularly strong market for rental properties thanks to the state’s many tourist attractions.
Disney World and AdventHealth, among many other large employers, provide jobs that drive local demand. As such, this city makes for an ideal market for both short-term and traditional rentals.
Jacksonville is a top location for rental investments due to its low unemployment rate and rapid economic expansion. Jacksonville also features world-class healthcare and bioscience sectors as well as an investor-friendly environment without an income tax, making this city attractive to both domestic and international investors alike. Recently Forbes’ list of Best Real Estate Investing Spots even named Jacksonville!
3. High Rent Prices
Florida is an attractive destination for both residents and tourists, leading to increased housing demand. Property prices in Florida tend to exceed national averages and offer investors attractive rental yields.
Florida remains an attractive location for real estate investment, making it a top state for rental investors in tourist-heavy cities like Miami and Orlando.
Before investing in any Florida city, it is wise to perform thorough due diligence. According to recent findings from Florida Atlantic University researchers, Florida’s rental market is overvalued by almost 40%. FAU real estate economist Ken Johnson spoke with WMFE’s Talia Blake regarding this discovery; part of the reason is due to the population boom in many Florida cities that has led to a shortage of rental homes causing rent rates to skyrocket.
4. High Demand for Rental Properties
Florida is an attractive investment state due to its strong job market and population growth, driving housing demand. Furthermore, landlord-friendly laws do not include rent controls in their rental laws.
Property investors in tourist-heavy cities such as Miami, Orlando, and Tampa can take advantage of the high demand for vacation rentals and Airbnb properties to capitalize on this market trend. Such investments provide more space, privacy, and amenities than hotels while creating a reliable source of revenue for investors.
There are many reasons to invest in rental properties in Florida. Whether you’re considering larger cities or markets, such as Charlotte County, Citrus County, or Palm Coast, there are plenty of opportunities to be had.