Quote from @Andrew Steffens:
Hey Matthew! We operate in several markets but 95% of our properties are in the greater Tampa Bay market. There are distinct submarkets within Tampa i.e. urban (Tampa/St Pete) and then the beaches.
1. Tampa metro
2. I am very bullish here because of the cities growth. Cranes everywhere, Water Street project, etc. The appreciation in the market here is tremendous and the tourist sector is still breaking records even after COVID records were set. I still believe there is a lot of running room on prices continuing to go up due to all of the jobs coming here.
3. Single Family Homes - Avoid HOA's at all costs!
4. The only challenge I see now is the supply and demand. When hotels want to build a new hotel they know the competition and the announced new competitors. It is tough not knowing how much more inventory could be introduced, or taken off the market. It requires almost daily metrics (thanks LSI tools) tracking.
5. Best practices must be followed. Gone are the days of buying an outdated house, throwing in Facebook MP or Craigslist furniture and cashflowing $3,000 a month. The property must be modern, well furnished (professionally unless you are a very good amateur), well located, have all amenities possible (usually a pool here, unless very urban), and have proper bed counts for the space (sleeps as many as possible without overextending the water heater, looking like a gypsy camp).
6. Florida's state level moratorium on local jurisdictions passing new laws or amending old laws regarding minimal rental periods is great. Tampa city council cannot meet tomorrow and pass a new law effectively putting us out of business. That being said, there are jurisdictional areas that have grandfathered in restrictions and it is BEST to working with an agent with a lot of experience. We have met a lot of people who worked with an unscrupulous agent who sold them a house for STR in an illegal area!!
7. As mentioned above I think Tampa will continue to grow both is regards to the market as a whole for real estate as well as for the tourism market.
Thank you for sharing your insights into the Tampa Bay market. It's clear that you have a solid understanding of the dynamics in the area, and I appreciate the valuable information you've provided.
In my markets, I've found a pattern where properties with higher guest capacity tend to perform exceptionally well in terms of pricing and occupancy.
Could you elaborate a bit more on your experiences with larger homes and their performance? Have you noticed any specific strategies or amenities that are particularly effective in maximizing the potential of these larger properties?
Your input and perspective would be invaluable as I continue to explore vacation rental opportunities in the Tampa Bay area.
Thanks again for sharing your insights!
