Oh, to sell or not to sell.
Isn’t that always the Shakespearean question?
Maybe not always.
But, if you are a real estate investor or property owner in Orlando, you may have been contemplating whether now is the right time to sell your rental property. You’re not alone. We’ve been having this conversation with a number of investors and rental property owners, and the unsatisfying answer to your question is: it depends.
The Orlando real estate market has been a focal point for many investors due to its fast-moving nature and promising growth. Whether there’s just one property you’re thinking of letting go or you’re in the middle of reshuffling your entire portfolio, let’s talk about what’s best for you.
In this blog, we’re taking a general look at the current market conditions, the potential benefits to selling, and whether it’s the perfect moment for you to cash in on your investment.
Understanding the Orlando Real Estate Market
The Orlando real estate market has shown remarkable resilience in recent years. Despite global economic uncertainties and fluctuating interest rates, Orlando continues to attract both domestic and international buyers. This tourist-heavy city even managed to survive a pandemic, when hotels were empty and theme parks were closed.
Here’s what we can tell you about the market, in case this helps you make up your mind about selling right now:
- Strong Rental Demand. The demand for rental properties in Orlando remains strong, driven by a growing population and a steady influx of tourists. You will have your own reasons for selling, but if you decide to hold onto the asset, you will have continued demand from long term tenants and short term guests.
- Appreciating Property Values. Property values have been on a steady incline, making it a lucrative period for sellers. Of course, this can also be a reason to hold onto your property. It’s only going to gain more value and provide more equity the longer you keep it.
- Low Inventory. Even with constant new development, the market is experiencing low inventory levels, which can result in higher selling prices due to increased competition among buyers.
Economic Indicators
Several economic indicators play a crucial role in determining the right time to sell. You’ll have to take a look at the job market, for example. Orlando’s job market is thriving, particularly in the tech, healthcare, and hospitality sectors. A strong job market often translates to a healthy real estate market. That’s good news if you decide to sell.
While interest rates have seen historic increases, they remain relatively stable right now, and we do expect that they’ll start to drop later this year. That will ultimately push more buyers into the market.
Orlando’s tourism industry shows no signs of slowing down, either, adding another layer of stability to the local economy.
Vote Yes: Benefits of Selling Your Rental Property Now
Here are some of the reasons you might want to go ahead and sell right now or in the very near future:
- High Property Values
With property values appreciating, selling your rental property now could yield significant returns on your investment. The current seller’s market favors property owners, allowing you to capitalize on the high demand and limited supply.
- Favorable Seller Market
The low inventory levels mean fewer properties for buyers to choose from, potentially leading to multiple offers on your property. This competitive environment can drive up the price and speed up the selling process.
- Diversification of Investments
Selling your rental property at a premium allows you to diversify your investments. You can reinvest the proceeds into other real estate markets, stocks, or even new business ventures, spreading your risk and potentially increasing your overall returns.
But, Wait…Considerations Before Selling
If your instincts are telling you not to sell, give yourself some more time to think about it. You’ll want to think about your long-term and your short-term gains. While selling now might offer immediate financial rewards, consider your long-term investment strategy. If the rental property provides a steady cash flow, and you anticipate further appreciation, holding onto it might be beneficial.
Selling your rental property could also trigger a capital gains tax, which might affect your net profit. Consult with a financial advisor to understand the tax implications and explore strategies to minimize your tax liability.
Steps to Successfully Sell Your Orlando Rental Property
Let’s say you do decide to sell right now. Here’s a quick to-do list to help you make the most of your sale.
- Evaluate Your Property
Conduct a thorough evaluation of your property to determine its current market value. Consider hiring a professional appraiser for an accurate assessment.
- Enhance Curb Appeal
First impressions matter. Invest in minor renovations and improvements to enhance the curb appeal of your property, making it more attractive to potential buyers.
- Hire a Real Estate Agent
Work with a local real estate agent who understands the Orlando market. Their expertise can help you set the right price, market your property effectively, and negotiate the best deal.
- Market Your Property
Utilize various marketing channels to reach a wider audience. High-quality photos, virtual tours, and engaging property descriptions can make your listing stand out.
Ensure your property is in pristine condition for showings. A clean, well-maintained property can leave a lasting impression on potential buyers.
Finally, be prepared to negotiate with buyers. Your real estate agent can provide valuable insights and help you secure the best possible offer. Once an agreement is reached, proceed with the necessary paperwork to close the deal.
Deciding whether to sell your Orlando rental property is a significant decision that requires careful consideration of market conditions, financial goals, and long-term plans. With appreciating property values, strong demand, and a competitive seller’s market, now might be the perfect time to capitalize on your investment.
These are all very general things to think about, and we’d be happy to take a look at your unique position and help you make this decision. 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.
