The real estate market in Tampa is booming, and real estate investors are flocking to the area to scoop up properties while the market is hot. During times like these, everyone wants to know the “secrets” to buying, selling, and renting real estate in Tampa. Speculation is running high – which means people are floating a lot of different ideas about what’s coming next.
Here at Vintage Real Estate Services, we’re not in the business of guessing the future of Tampa real estate. Over the course of our more than 15 years serving Tampa Bay, our leadership has gained insight that helps us see through the fog surrounding real estate investing. In this blog, we’ll be debunking some of the most persistent myths that continue popping up in the industry. These are our top 5 real estate investing myths:
Myth: Being a Landlord is Passive Income
We’ll start with the myth that being a landlord is “passive income”. Today, more people are looking to build a network of income streams and passive income ideas. A recent Zapier survey found approximately 1-in-3 Americans has a ‘side hustle’. Being a landlord is not one of them.
If you are currently a landlord, you already know there is large amount of work involved. If you’re considering becoming a landlord (or recently have become one) and are not working with a property manager like us, expect to be on call at all times. Landlords are responsible for maintaining properties, repairs, handling complaints, marketing, vetting tenants, responding to problems, and more. Being an independent landlord can quickly turn into a full-time job.
Truly passive income is possible by engaging our property management services. We give you the benefit of collecting rent like a landlord without the hassle of handling the day-to-day operations. Vintage Real Estate Services is a full-service real estate brokerage. We can manage the properties you already own and help you expand your real estate portfolio.
Myth: Handling Several Properties All By Myself Will Be Easy
As we’ve just discussed, a single rental property can require a huge amount of attention. Multiple properties multiplies the work. It’s as simple as that. The myth that handling several properties on your own is a “DIY” type of job is false. So where does it come from?
In researching this illogical myth, we came across the same reductive idea: ‘multiple homes means multiple streams of passive income’. There’s a kernel of truth there: yes, several properties means collecting rent from several households. But being the sole landlord for multiple tenants (who are likely not neighbors) means handling repairs, cleanings, inspections, etc. in multiple locations. Working alone will make it impossible for you to be in several places at once. Depending on traffic conditions and locations around Tampa Bay, travel time alone can eat up most of a day. Even for seasoned landlords, handling several properties poses challenges – you’ll find very few who truly work alone. It’s often too much work for a single individual to handle. It’s possible, but by no means is it easy.
Myth: No One Will Treat My Home Like I Do
At some point in your life, either on social media or the news, you may have seen a video of a nightmare tenant. We aren’t going to tell you they don’t exist. But we can say with confidence that we believe there are more good tenants than bad ones looking for homes, and our tenant screening process greatly increases your odds of placing a dream tenant. These are our neighbors and friends, members of our community who are simply looking for a place to call home. How can you figure out who will treat your home like you would?
Vintage Real Estate Services vets tenants to match prospective renters with homes around Tampa Bay. We’ve been at this for a long time. We’ve helped renters find homes and helped our clients keep their faith in renters. If you’ve been burned by a tenant before, consider bringing in a partner to arrange relationships in the future. Contact a member of our team to find out how easy finding respectful, responsible renters can be.
If you choose us to also manage your rental property after purchase, you’ll enjoy some of the best property management services in the Tampa area. From property maintenance to tenant placement, to rent collection and issues, we handle it all on your behalf and treat your home and property the way you would.
Myth: The Timing Must Be Perfect to Invest in Real Estate
When is the best time to become a landlord or invest in rental properties? Should you sell your current home or rent it out? If you find yourself saying “I want to wait until I can perfectly time the market”, we encourage you to change your perspective. It’s a myth to believe you can predict exact future market conditions. Real estate fluctuates, but there are opportunities in every economic climate.
Consider this: the pool of available houses is expected to continue shrinking, according to Fortune, while the number of interested buyers is projected to rise – and housing prices with them. Buyers who could afford to purchase homes last year might might feel regret today; in another two years, they may feel grateful they bought before prices rose another 20%.
Of course, no one can predict what events might change the economy, for better or for worse. Markets can be unpredictable even in the best scenarios. The best time to buy is when you’re in a position to do so. Housing bubbles burst. Real estate sentiment can turn relatively quickly – we’re already seeing signs the market is cooling from the 2021 frenzy as we head towards summer 2022.
The takeaway from this myth is that no one can know with 100% certainty what the future will hold. The best we can hope for is making informed, confident, reasonable decisions based on the trustworthy guidance of people who know better. We’ve been doing this for over a decade and a half. Let Vintage Real Estate Services guide you toward the right choice for your investing future.
Myth: Property Management Costs Too Much
The final myth on our list is one we hear often: Property management costs too much money. For some, any amount of money for property management services is “too much money” – that reasoning is partly based on the ill-conceived myths of “DIY”ers outlined above. Property management is not passive income. Being a landlord is not an easy, low-maintenance side hustle. It requires significant and consistent investments of time and money to get a return.
Consider the number of hours you’ll invest each month traveling between properties and directly coordinating tenants, contractors, and listing agents. Finding (and properly vetting) prospective tenants can be risky for new landlords – one small error in judgment can cost tens of thousands of dollars later on.
Vintage Real Estate Services management fees are lower than the sum total of time and money you’ll invest as an independent landlord. Our team can take that burden off your shoulders. When you do your next cost-benefit analysis, ask yourself, “what is the cost of not doing it?”” In almost every case, you’ll discover management fess will be worth it. Plus, our Full and Premier packages offer multi-property discounts.
Real Estate Investing in Tampa Bay
As we’ve discussed, myths contribute to common misconceptions about the relationship between acting as a landlord and creating passive revenue. The most logical way to turn your real estate ambitions into a low-maintenance income stream is to find a trusted, full-service real estate investment brokerage to help you find, manage, and fill your rental properties. We do the hard part, and you collect income.
Be diligent in your research. Then bring your questions to our talented team of professionals. We’re here to help you separate fact from fiction – satisfaction guaranteed. Call us at 813-684-0001, or fill out our online form to get your free rental analysis.