The real estate industry has been through a lot in the last three years. Since the pandemic shook things up, we have seen skyrocketing prices, a migration from large cities into more desirable regions with a better quality of life, and rising rental prices.
There’s a lot we can attribute these trends to. Inflation. Economics. Home buying trends.
Remote work.
The impact of remote work on the real estate industry cannot be overstated. It’s made a huge difference in where people live, how homes are priced, and even what kinds of features are offered now in homes for sale and for rent.
Remote work turned out not to be merely a symptom of the pandemic. It is here to stay. And, remote workers can live wherever they want. It’s one of the benefits to not having to go into the office every day.
How does remote working impact the central Florida housing market?
It actually helps our market. Professionals from all over the country are realizing that they can spend a lot less money on housing when they live in a place like Florida, even while they earn their high salaries working remotely. They also enjoy a better quality of life in communities like Celebration, Tampa, Kissimmee, and throughout the Sunshine State.
Our rental market has benefited from the remote work trend, and the challenge for property managers like us is making homes like yours attractive to these tenants.
Why Is Remote Work Good for Central Florida Rental Property Owners?
Tenants who work remotely are looking for a space that’s desirable to live in and work in. They want a place where they can feel comfortable and productive. It’s also about cost and quality of life.
Historically, workers have had to live where they could find jobs. That was good for large cities, which attracted major companies and employers. Everyone who worked in tech would have to live in San Francisco or Silicon Valley. If you were in entertainment, New York or Los Angeles were the only places you would want to live.
Not anymore. Tenants can hold onto their jobs and not necessarily live within commuting distance of their employer.
There are choices, now, and these choices mean that remote workers can live in a place that provides everything they love about a city without most of the headaches.
Central Florida and the surrounding areas have a lot to offer remote workers. This area provides a warm climate. While housing costs are rising, they’re still lower than in a lot of markets that people are moving from. There is plenty of entertainment and recreation, and new construction is keeping up with the high demand for housing.
Florida is exactly the type of place that remote workers want to call home.
Rental Increases and Remote Work
Remote work has also impacted the real estate market by pushing prices up. Demand is higher in areas like Florida. And while the remote work trend has had market-specific impacts, in our rental market, this has been a benefit.
There are a lot of reasons that rents are going up. There’s inflation, the rising price of homes on the sales market, and the general demand for rental housing.
Rents are higher now because more tenants are in the local rental market.
More tenants are here because remote workers make up a lot of the tenants who are looking for rental homes. The population is growing in our area, and there’s no reason to think that growth will stall.
How Can Your Orlando Property Manager Leverage this Trend?
What does this mean for you, if you have a rental home in Orlando, Celebration, Tampa, or anywhere in the local area?
It means high rents, lots of tenants, and an opportunity to increase the value of your property.
We’ve been thinking about how to help the owners we work with position their properties to attract these remote workers. Here are some of the things we recommend, based on what these types of tenants are looking for in a rental home.
- Dedicated Work Spaces
Your rental property will be more attractive to work-from-home tenants when they have a dedicated work space. That might be an office, a den, an additional bedroom, a loft space, or even a large and open floor plan that can accommodate a desk or two. When the space can accommodate remote work, tenants will be attracted to the possibilities.
- Remote Working Tenants Need Good Tech
Remote work demands a strong internet connection.
Can you provide one in your rental home?
The Internet is perhaps as important to remote workers as cable and utilities. You might leave it up to your tenants to choose their own internet providers, but be prepared to make some recommendations on which local providers offer the best packages and the strongest speeds.
One potential way to help your property stand out in the market is by offering Wi-Fi in the rent. This doesn’t have to be forever, but if you offer it as an incentive for the first three months, you’ll get the attention of tenants who will likely be relieved that they don’t have to worry about establishing their own account after moving in. They’ll have the internet available and working so they can get started on day one.
Keep Your Rental Value Competitive
Competitively priced rental homes are always in high demand. As rents are moving up all across the country, areas like ours are increasingly attractive to remote workers who want to rent a home. They’re paying much less than they would in New York or Miami or Los Angeles.
As an owner, however, you’re benefiting from the higher rents. Just make sure you’re setting a rental value that allows for a healthy profit. Always list your rental home at a price that meets the market demands. But, don’t go too high. Staying competitive will allow you to fill your vacancy quickly. Get a well-qualified tenant into your home as soon as you can, and then work hard to retain them.
This is what we see for remote work and its impact on our local market and the industry as a whole. Want to talk more about this? Contact our team at Park Avenue Property Management. We work in Lake Buena Vista, Orlando, Kissimmee, Celebration, Maitland, Altamonte Springs, West Palm Beach, Tampa Bay, and throughout central Florida.