I am a Boston-based real estate investor looking to start purchasing investment properties (condos and SF) in Tampa. After getting quotes from multiple property management firms in Tampa, prices are way more expensive than the prices I pay in Boston (~6% in Boston versus 9-10% plus a tenant placement fee in Tampa). Is there a reason why property management seems to be way more expensive in Tampa than in Boston? Does anybody know less expensive but reliable options for property management?
The prices and rent to value ratios there are too high to make good cash flow right now. Especially for condos where you have to pay the condos fees etc.
Have you thought about the midwest?
I own and operate Rentwell in the Tampa market. We also have offices all over the country. You have to factor the rent average in Boston vs Tampa and then consider the cost of conducting a business.
Let’s say average rent in Boston is $3,000 and it’s $1,000 in Tampa... your 6% in Boston is $180 and it’s $100 in Tampa.
Same amount of work for $80 less
Hopefully that helps illustrate that it isn’t apples to apples to compare based on percentages only.
By the way we are seeing 8+caps here routinely. I agree that Condos are not the way to go but there are great investments here for sure.
Hey Chris, that makes sense. I guess I never thought of it that way. I’d love some examples of good investment properties in your mind. I’ve been looking at Ybor and potential appreciation from the Rays stadium hopefully going in. Not being local a condo seems to make more sense though I guess if it’s managed professionally it doesn’t really matter what it is.
Hi @Eric Sax ,
I love condo investing personally, and I have a pretty good story as to why they are. I own two condos, and I get to offer my tenants amenities included in my monthly HOA dues pay for. They see value in adding water, or trash for free in their rent as well as a pool, fitness center and security gates and guards. It helps me get it rented quicker by adding value.
What I really like, is condos with on-site management. Reason being, they watch my tenant day and night. My HOA contacted me about that 1 of my tenants had their boyfriend staying in my unit. This is a breach of my lease, and the HOA's rules. I found out that their boyfriend had an extensive criminal background involving drugs and theft. I was then able to get a head start on the issue before something happening getting me into trouble.
I work for a brokerage that manages roughly 60 rentals and 90% of those are condos. We love them for that reason, and allows us to do our job better and have more control over the tenants and properties themselves.
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