Shifting sands: Orlando area’s increasing rent prices

Shifting sands:  Orlando area’s increasing rent prices

The Tide’s rolling….err…The Tide’s turning…err….No, for once, I’m not talking about my 13-time National Champion Alabama Crimson Tide (hopefully 14-time soon, by the way).  Here, rather, I’d like to talk a bit about our Orlando area’s increasing rent prices and the tide that rolled in and and brought them.

Our industry didn’t see rent prices drop through the floor overnight- so we shouldn’t expect a recovery and prices through the roof any more quickly.  There’s a strange period of adjustment going on right now, and the adjustment will require a good bit of a balancing act as the sands shift.

“‘Balancing act’, you say?”  Indeed.

There have always been tenant prospects, and there always will be.  If you cast your net (or Internet, as it is these days) wide enough, they’ll come.

The shift that’ll be dealt with as things unfold is a bit like this…

Tons of properties, tons of prospects….. some have been great, some “not so great”.  The great ones have had the luxury of viewing 20 places and choosing the one they felt was good enough for them to grace with their Holiness for a year’s time- while (oddly enough) the “not so great” prospects felt similarly entitled.

Shrinking properties list, growing prospects list… great prospects are their in lesser numbers, overall prospect pool is growing.  This lead to a bit of pressure on the great prospects- as they could be as great as they could be and have no place to live ’cause the places they waffled on renting got gobbled up by folks just a tad bit worse.

Now comes the swing… Inventory has dropped like a brick- a crazy drop.  Great places are going quickly- as with one in Errol Estates yesterday.  I placed a Trulia ad for it, got a call within an hour and set a time to show it last night and knocked it out.  I had the application online late last night and certified deposit funds in hand this morning.

This is the time when great prospects can (and will) snooze and lose.  There’ll be less showings scheduled- because we won’t need as many.  On a bit of the down side, though, we’re going to be dealing with an increasing number of folks that have lost their homes and have hit the rental market for the first time in their lives.  Great to have the tons of prospects, yet a challenge exists in ensuring all folks are dealt with fairly and that they feel they’ve been dealt with fairly.

For example, rejections will be a bit harder in some cases as more and more folks hit this market with an unrealistic view of their credit worthiness.  There’ll also be a period of crazy times to come when we hit the point where the low inventory allows us to be more selective, yet the prospect pool in general might have poorer credit because of a renewed avalanche of folks displaced by foreclosures.  How long to wait on the great prospect around the bend will be an interesting scenario.

Shifting sands:  Orlando area’s increasing rent prices

It’s a great time to be an investor, though- a great time to invest.  Properties in great shape and priced properly will rent quicker than in previous months/years.  Rents are increasing, and projections show that continuing- Econ 101.  Supply down, demand up means prices up.

I’ve never hit the beaches of Waikiki with a board lookin’ to hang ten, but this Orlando area and our rental market may soon present waves that’d make Kelly Slater jealous.

Shifting sands:  Orlando area’s increasing rent prices

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About Dennis Burgess

Dennis B. Burgess Realtor in Orlando, FL ORRA Vice-chairman of Strategic Planning/Secretary ORRA/FR Boards of Directors Empire Network Realty 6000 S. Rio Grande Ave., #104 Orlando, FL 32803 Cell: 205-445-4755 Office: 407-440-3798 bamaburgess@hotmail.com Twitter: @orlrentals Turning vacant into occupied, and "houses" into "homes"
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