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What you should know if you are buying a long-term rental property as investment

There is a growing need for housing for long-term rental. Orlando is not just a city to vacation, but it has grown tremendously in recent years, bringing thousands of people from all over the world to live permanently.

Of all those thousands of newcomers, many rent houses while they adjust to their new city; also many residents cannot afford to buy a property, and others do not want to have the owner’s responsibilities.

That’s why the demand for housing rental is huge. Just enough to put an ad to receive numerous calls from interested and a large number of buyers have realized the investment potential that has to buy one or several properties for rent in the long term. Many of them are international buyers, who do not live in Orlando but want to buy purely for investment and rental income purposes.

If you are considering buying one or more houses to rent, you should know:

1-Take the time to evaluate the following factors: The price, the location, the facilities offered by the community and the size of the property. A very large house may not be as attractive as a typical four or three bedroom house. It all depends on what type of tenant you want to address.

2-Know your responsibilities as an owner-Although the tenant will have some to keep the house in the best conditions, the owner must have all equipment working, ensure that tenants comply with community standards and that the property is well maintained. Most tenants prefer unfurnished homes, (just a fully equipped kitchen), which means less furniture replacements.

3-Analyze the costs of your home-Your primary goal is to earn rental income, but you need to evaluate the costs. In addition to resident association payment, you must pay taxes and insurance, but it is not your responsibility as owner to pay for basic services such as water, electricity or internet, if it is a residential property (lower operating costs).

There are many benefits of buying to rent in a long term basis, among these:

Take advantage of current market prices and your property is gaining surplus value over time.

Monthly rental income is constant and fixed for the term of the lease, with which you can pay off your mortgage, if you made a loan to buy it, or you can make a profit immediately if you paid it in cash.

At the moment you want to live your property you just have to wait to finish the current contract and move when you like. If not, and you have a good tenant, you can always renew the lease, which typically is for 12 months.

If you have a vacation property and you have rented it short term or used as your vacation home, but now you do not use it as much or you want a more fixed monthly income, consider convert to long term rental. Many of the vacation communities are also residential; if you need more information, we will be glad to guide you.

In Viva Orlando Realty we have an entire department dedicated to the rental of long-term properties, which is in charge of property management, the marketing, finding the ideal tenant (doing background check), collecting the rent and monitoring to keep your property in the best conditions and coordinating all the necessary maintenance.

To buy, sell or rent properties in Orlando, count on the experts of Viva Orlando Realty. Call today at 407.922.4620 or write to milena@vivaorlando.com