Are you looking to invest in Pensacola Real Estate and take advantage of the active rental market? Would you be interested in increasing your monthly revenue? If your goal is to buy properties and rent them for cash flow, here is some information you should consider when purchasing an income-producing property in the Pensacola area.
There are different ways you can invest in property in the Pensacola area. Because of our beautiful, white sand beaches and rich history, Pensacola has a large population of seasonal tourists looking to lease daily or weekly. These type of short-term rentals are leased fully furnished with all utilities included and deemed vacation rentals. They require a different strategy and more expenses than the typical long-term buy and hold single-family real estate investment.
In order to decide on a good strategy for you, you should consider your long term investment goals for the property. Is your goal to build equity, create a positive monthly cash flow? Or is it to rent it out for a time then sell later at a profit? Do you want to own a property you can come vacation and visit? You should also keep in mind things like how much time you have to take care of and manage your property.
Single-family homes come with monthly expenses like trash removal, power and water bills, and yard maintenance which can be passed along to a long term tenant. If you own a condo, you pay a monthly maintenance fee, regardless of whether someone is living in the unit. Most include exterior maintenance, trash and the insurance for the building, some do and some do not include water inside the units.
Something else to take into consideration is what types of properties appeal to different types of renters. Condos, townhomes and apartments are great for college students and other singles. Single-family homes can accommodate singles but also appeal to married couples with or without children.
I personally like to rent single-family homes unfurnished and with long-term leases. I get a signed 12-month lease and make the tenants responsible for all the utilities, yard maintenance, pest control and some minor maintenance. Consistency and continuity are two benefits of investing in this type of rentals, and it takes the least amount of time and effort. Tenants often stay and renew their lease beyond the first year. The average length of time tenants stay in the same place is about 2-3 years in Pensacola, Florida.
We have a large number of military renters from both Pensacola Naval Air Station in Southwest Pensacola and NAS Whiting Field in Milton. We have two main types of military renters in the Pensacola area. Students attending the flight training program or another school tend to stay one year or less. Military families typically get their orders for three to four years in one location and if they like the home they are living in they will stay the entire time.
We also have several colleges including Pensacola State College, Pensacola Christian College, and the University of West Florida. Student housing is another rental niche that is very viable in areas located near a college or university. If you are considering investing in student housing, take the time to visit the housing offices on local college or university campuses and ask what's currently available and what students are looking for in terms of housing. Undergraduates typically share housing so be prepared for the unexpected, but you can charge more and therefore it can produce a higher return. Again these students typically will find a place and renew their lease if they are happy with the landlord and the accommodations, so there is the potential for a four-year rental.
For more info on investing and my personal strategies, you can purchase my book, "The Real Estate Rulebook: Everything you need to know to build wealth and create passive income." Reach out to me if you are looking to purchase Pensacola Investment Property!
Pam Keen, Broker
Realty Masters of Florida
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