Becoming an Orlando landlord presents a number of opportunities. You can earn some great rental income, especially in the current rental market. You can also hold onto a valuable asset that’s going to appreciate in value, making you money fairly effortlessly over the years.
There are also challenges to being a landlord. You need to understand the laws and requirements that come with rental property. You’ll face having to find a tenant, screen that tenant, collect rent on time, and keep the property well-maintained.
There are pros and cons to being a landlord in Orlando, and we’re sharing some of those today. We’re also reminding you that a great way to enjoy the benefits of real estate investing without the hassles is by working with an Orlando property manager.
Becoming an Orlando Landlord: The Pros
Most of the things you find in the pro column will be financial. The potential for earning both short-term cash flow and long-term ROI is high. When you have a well-maintained rental property that’s almost always vacant, it’s hard not to earn money. Here are some of the specifics:
- Tenants are paying your mortgage and expenses. Unless your property is paid off, you’ll have to pay the mortgage every month as well as property taxes, insurance, and other expenses. The rent you earn from your tenants will contribute to those costs and in some cases, pay for them entirely. That’s a pretty good deal.
- You can benefit from tax deductions. You’ll have to declare what you earn in rent as income, but the deductions will protect you against any extra tax liability. You can write off your property management fees, the cost of maintaining your home, any mortgage interest, and you can also claim depreciation.
- This can be remote work. You don’t have to stay in Orlando just because you have a rental property here. It’s easier than ever to be a remote landlord, thanks to great property management technology.
Becoming an Orlando Landlord: The Cons
Depending on what else you have going on in your life, being a landlord can be time-consuming. It can also be risky. Leasing, managing, and maintaining a rental property comes with a high probability that you’ll make a mistake at some point. In real estate, mistakes can be expensive. Here are some of the challenges to landlords in Orlando:
- Being a landlord takes a lot of time. It’s easy to underestimate what’s involved. If you think you’ll just be finding a tenant and collecting rent – it’s not that simple. You’ll need to show your property when it’s vacant, respond to maintenance and repair requests, and supervise the turnover process between tenants. There may be calls in the middle of the night or while you’re on vacation.
- You need to have some money in the bank. Renting out a home is profitable, but a landlord could be called at any minute with a need for a new roof. There could be a sewer drain issue at your rental property or an accident. You need to keep your property habitable, and that requires a maintenance reserve. Make sure you’re financially stable before becoming a landlord.
- There will also be unexpected costs. Vacancy, turnover, and evictions are all expensive and they’ll quickly eat into your profits. It’s hard to budget for how long it will take to make a home ready for the rental market between tenants. Be prepared for these, and always budget more than you’ll actually need.
- Laws and legal obligations are complex. Florida is a fairly landlord-friendly state. There’s no rent control, but you do have to pay attention to the notice periods before you raise the rent. You also need to understand the eviction process and how to lawfully return a security deposit. Fair housing laws can also be complicated. You need to know the difference between a pet, service animal, and companion animal.
Professional Orlando Property Management
The best way to enjoy the pros of being a landlord without getting trapped in the cons is by working with a professional Orlando property management company. We can use our resources and expertise to provide a great rental experience for you and your tenants. The result is often higher incomes, lower expenses, and fewer mistakes.
If you’d like to talk about being an Orlando landlord, contact us at Park Avenue Property Management.