Orlando is increasingly becoming a focal point for investors from across the country and even across the world. This is a city that’s always been known for its thriving tourism industry, but Orlando is now capturing attention for more than just its theme parks.
While millions arrive annually to visit its world-renowned attractions, the city is also experiencing significant economic growth, fueled by an influx of new residents and diverse job opportunities.
If you’re a real estate investor, you may have already considered Orlando. Here are some key reasons why Orlando real estate is worth your consideration:
- Growing Population. Orlando is one of the fastest-growing cities in the United States. Its population is projected to grow by over 50% in the next two decades. Retirees have been moving to Florida for generations, but these new population numbers include an astonishing number of younger people and remote workers.
- Economic Diversification. Beyond tourism, Orlando’s economy is diversifying into sectors like technology, healthcare, and education. It’s easier than ever to find a job, and that’s drawing new residents to the area, too.
- High Rental Demand. With a growing population and a steady stream of tourists, the demand for rental properties remains robust. There’s a competitive market for long-term rentals as well as short-term vacation homes. Investors have a lot of options.
This is the market now. While we expect it to stay strong and profitable over the long term, smart investors are always thinking about the future. Here are some of our ideas on how to make sure you’re earning what you should in any market conditions.
Key Trends in Orlando’s Rental Market
What are we looking at right now that will impact your investment properties now and in the future? These are some of the key trends we’re following as your local Orlando property management resource.
- Short-Term Rentals on the Rise
With platforms like Airbnb and Vrbo gaining popularity, short-term rentals have become lucrative for property owners. Orlando’s tourist-friendly environment makes it an ideal location for short-term rental investments. There’s a lot going for this type of investment; you can make a great nightly rate. However, it’s crucial to stay updated on local regulations, as the city has specific rules governing short-term rentals. Those rentals have to be registered, and they come with their own set of fees.
- Smart Home Technology
Modern tenants expect more than just a roof over their heads. Properties equipped with smart home technologies such as keyless entry, smart thermostats, and security systems are becoming increasingly attractive. These features not only appeal to tech-savvy renters but also add value to your investment. Consider starting with a video doorbell and a digital keypad if you’re not willing to invest in all the smart features.
- Sustainable Living
Sustainability isn’t just a trend that climate-conscious people are throwing around; it’s a growing demand among renters. Properties that boast green certifications or eco-friendly amenities like solar panels and energy-efficient appliances are likely to attract environmentally conscious tenants. Investing in sustainable features can also result in long-term cost savings. This is also a great way to future-proof your investment because we see the focus on sustainability only gaining traction. Start by switching to LED bulbs. When it’s time to replace an appliance, choose one with an energy rating.
- Community Amenities
Properties located in communities that offer amenities such as fitness centers, co-working spaces, and social areas are experiencing higher occupancy rates. Today’s renters value convenience and lifestyle amenities that enhance their living experience.
- Remote Work Trends
The rise of remote work has led to a demand for properties that offer dedicated home office spaces. Properties with flexible floor plans and strong internet connectivity are particularly appealing to remote workers. Orlando, with its fantastic climate and high quality of life, is attractive to those looking to relocate from more congested urban centers.
How to Future-Proof Your Orlando Real Estate Investment
No investor wants to make changes now that will be meaningless in five or 10 years. What can you do to make sure your investment property is as profitable in the future as it is right now?
The best thing you can do is stay informed. The real estate market is dynamic, and staying on top of the latest trends and regulatory changes is crucial. Stay current not only in the industry, but in the local market as well.
We also highly recommend that you focus on quality. When selecting properties, prioritize quality over quantity. Well-maintained properties in desirable locations will always be in demand. Consider investing in renovations or upgrades that align with the current trends, such as adding smart home features or enhancing energy efficiency.
Diversification is always a key strategy for mitigating risk and preparing yourself and your portfolio for the future. Consider investing in different types of properties, such as single-family homes, multi-family units, and short-term rentals. This approach can help you capitalize on various market segments and reduce your vulnerability to economic fluctuations.
Leverage Technology to Prepare Your Properties for the Future
Utilize real estate technology platforms to streamline your property management processes. From virtual tours to online rent collection, technology can enhance efficiency and improve tenant satisfaction. Automated services are easy to access now, and we’re seeing developments with Artificial Intelligence (AI) and other technology types that will soon become the norm.
Working with local Orlando property managers, real estate agents, and legal advisors can provide valuable insights into the Orlando market. We can help you navigate local regulations, identify prime investment opportunities, and manage your properties effectively.
Orlando’s rental market offers promising opportunities for real estate investors from any part of the state, county, or globe. By staying attuned to emerging trends and implementing strategies to future-proof your investments, you can position yourself for long-term success in this vibrant market.
We’re ready to help. Let’s take a look at your current investment portfolio and talk about next steps. We invite you to contact us at Park Avenue Property Management. We work with landlords and investors with properties in Celebration, Orlando, Lake Buena Vista, Kissimmee, Maitland, Altamonte Springs, West Palm Beach, Tampa Bay, and throughout Central Florida.
