Posted on: February 14, 2013
The latest Survey of Emerging Market Conditions quarterly report from the Bergstrom Center for Real Estate Studies at the University of Florida forecasts the metropolitan Orlando rental real-estate market, among other Florida locales, a “good bet for the foreseeable future.”
Here are two market conditions that continue to make the Florida market a solid investment for rental revenue for 2013 and beyond:
(1) Positive Occupancy Outlook
“The outlook for occupancy continues to improve as demographic changes over the next ten years benefit rental units,” according to the Bergstrom Center. The report notes that “people are waiting longer to start a family and prefer to rent until they do start a family.” Furthermore, significantly lower ownership rates, caused by the housing bust which drove many former owners into rental units, have also contributed to a bolstered rental market.
(2) Undersupply and Rental Rates
The Bergstrom Center’s report observes that there is an “undersupply of [rental] units” in the greater Orlando area, which is “driving expectations for occupancy higher.” As such, the “outlook for rental rates [has] increased,” concludes the report. The significantly higher demand for rental units since 2006 coupled with the undersupply of units “will continue driving rents higher over the next year.”
MSR Americas has long known the value of Florida rental investment properties and consequently targets established, liveable communities for long-term rental returns from tenants with stable employment—signed to 12-month leases. Our clients enjoy predictable net rental revenue of 8 to 10% returns on their investment and the potential for significant capital appreciation.
MSR Americas provides a seamless end-to-end experience for our investors. We take care of everything.
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