Owning a rental property can be one of the most lucrative ways to make passive income. The appeal is obvious: by owning real estate and renting to trusted residents, you can have a steady stream of income with little oversight. But for property owners, learning how to invest in rental property can often seem daunting and confusing. How do you find residents? How do you do the proper screenings for potential renters? How do you collect and manage payments?
For Brittany and Derrick Mosely, real estate seemed like an opportunity for both income and community involvement. As Atlanta residents, Brittany and Derick were familiar with the unmet needs for affordable housing in the area. The pair worked to buy properties throughout Atlanta to be able to provide safe, affordable, and attractive housing opportunities. Brittany and Derick had some experience with property rental using traditional property management companies and short-term rental programs. But when the couple purchased a coliving home in 2017, they saw an opportunity to take their investment further.
With PadSplit, owning and running a rental property becomes so much easier. We will work with you to manage the tricky logistics while providing large returns on your investment. If you are interested in learning how you can use your property to make income, follow along as we explore real estate investing, the housing market in Tampa, and how you can work with PadSplit to transform your dreams into reality.
Real Estate Investment: Pros and Cons
Real estate investment can be a highly profitable investment if done correctly. If you can own a property for a long period and rent it, you can benefit from real estate value appreciation and a steady cash flow. However, managing properties does take time and effort when done independently. It is important to consider the pros and cons of real estate investment when deciding how to approach it.
Pros:
- Passive income
- Active investment control
- Property value appreciation
- Tac benefits
Cons:
- Property advertisement
- Rental screenings
- Payment collections and management
- Management responsibilities
Tampa Housing Market
Tampa is one of the fastest-growing cities in the United States. Tampa currently stands as the third-most populated city in Florida and the fifty-first largest city in the United States with a population of 384,959, according to the 2020 US Census. The Greater Tampa Bay area holds over 4 million residents. Tampa is one of the best places to live in the Southeast. People continue to flock to this Florida city for its vibrant culture, gorgeous weather, and affordable living options. Tampa is currently growing at a rate of 1.2% annually.
Tampa is a warm, beautiful city that attracts both young and old. With the tropical Florida weather, Tampa draws people in for its breathtaking beaches and hiking trails. Downtown Tampa hosts a historic district influenced by Spanish, Cuban, and Italian immigrants. Residents enjoy the friendly attractions throughout the city, such as the jam-packed outdoor festivals, colorful art museums, delicious local cuisine, and electrifying sports teams.
Buying Real Estate
Now is the perfect time to purchase real estate in Tampa. For the first time in over two years, the housing market in Tampa is starting to cool off, making it easier for you to find a house for sale and purchase at a lower price. Experts expect that the housing market will continue to shift to the buyer’s benefit with more affordable purchase points and less competition. There is still a great demand for rental units in Tampa. Over half of the population in Tampa rents (rather than owns) a housing space.
There has never been a better time to be a landlord. Once you have decided to embark on the journey of real estate investment, you will need to purchase a property. Location is key, so look for properties that might appeal to potential renters. Spaces downtown might offer renters a convenient location within walking distance to work, nightlife, and local amenities. Suburban properties may offer a more quiet, private rental option. A qualified real estate agent will help you to find the perfect space, craft an offer, and negotiate the purchasing price. Use our guide to find the best possible real estate agent in the Tampa area.
Decide How to Rent It
Once you own a property, the next step is deciding how you would like to rent and manage the property. In our modern world, there are many ways for you to rent our living spaces. Technology has made it easy to find short-term vacation rentals and longer-term property rentals at the touch of your fingertips.
Short-term vacation rental management programs have grown in popularity over the last decade. These programs allow you to create a home away from home for vacationers in Tampa. You will have a higher turnover of guests, but be able to charge more for the shorter-term rentals. This model requires a higher level of maintenance and runs the risk of inconsistent revenue due to possible vacant periods.
When Brittany and Derrick were choosing what to do with their properties, they wanted to find a model that allowed for a steady income with a streamlined management structure. After a bit of exploration, the couple chose PadSplit as a perfect option for property rentals.
“To be honest, we were a little hesitant at first,” Brittany said with a laugh. “We had gotten our feet wet in the coliving realm, and the management fees felt high compared to what we’d pay a traditional property management company. But, we took a chance and switched one of our properties to the PadSplit model. The rest is history.”
The co-living rental model combines the best of all worlds. Shared living arrangements allow for both long-term and short-term/flexible leases. Co-living allows for greater affordability, flexibility, and community building. The model reduces the amount of time of vacancy and allows for a steady income stream.
Brittany and Derrick found great success using PadSplit’s co-living model and rental services. They currently list 11 properties on the PadSplit platform and plan on buying more properties. PadSplit provides a reliable platform to make renting easy. By working with PadSplit, Brittany and Derrick can create affordable living options for the residents of their community while having a strong return on investment in their properties.
PadSplit Makes Real Estate Investment Simple
PadSplit makes it easy for property owners to earn money. Our team will work on your behalf to advertise your property, verify the identity and income of potential renters, and perform background screenings where available. We manage all rental collections and provide an easy pay-out directly to you. We have a dedicated call center that will handle resident disputes, which reduces the amount of work for you as a landlord.
With the PadSplit Earning Calculator, you can compare your earnings as a single-family home rental against how much you could earn as a PadSplit host. Owners who manage properties through PadSplit have seen their yield increase more than 100% and experience lower turnover rates thanks to our pre-screened Member pool. The PadSplit team makes it easy for landlords to fill rental spaces and manage logistics.
Visit www.padsplit.com/hosts today to learn how you can become a PadSplit host!
