Are you thinking about investing in a rental property in St. Augustine? You’ve come to the right place! This beautiful and historic city has consistently proven itself to be one of the most attractive tourist destinations in America.
St. Augustine hosts about 6 million tourists each year seeking its warm temperatures and exciting activities. The city is surrounded by beaches drenched in the sun and colonial Spanish architecture that adds to its appeal. It’s no wonder why this city is thought of as a second home to so many visitors!
For this reason, we can confirm that investing in a rental property in St. Augustine is a great idea. This beautiful city is full of life and it promises to provide you with a great return on investment.
To assist you with this investment decision, our professional team at Suncastle Property Management has prepared a review of the market and some top tips to help secure your ideal investment property in the market.
For any property owner, the most important factor in a rental property is the rate of occupation. A rental property that remains unoccupied does not generate income and causes a lot of headaches for the investor. However, this is not the case in St. Augustine.
On average, the annual occupancy rate in St. Augustine stands at 71%, with a strong occupancy rate of 52% in the off-season period. Conversely, at its peak in July, the city records a remarkable occupancy rate of up to 94%. St. Augustine is also highly rated as being in the top percentile of the most desirable cities in Florida.
The area has also experienced steady rental growth in the past few years. There has seen sustained rental growth between the third quarter of 2018 and the third quarter of 2021. The growth pattern has so far only dipped once due to the Covid-19 pandemic.
The rental property market in St. Augustine is full of great potential. Savvy property investors can leverage the high demand for properties in this city and reap the benefits of the thriving rental market for years to come.
If you’re considering investing in the rental property market in St. Augustine, there are a few factors that you need to keep in mind.
The location of a property plays a major role when purchasing a rental building. A property’s location is one of the chief factors that determine its desirability to prospective tenants in the market.
The most desirable properties in this area are located at the beach. Some of the best neighborhoods include Saint Augustine Beach, Butler Beach, Anastasia Island, Vilano Beach, and Crescent Beach. It’s worth mentioning that if you plan to purchase a property in highly residential areas, maintaining a good relationship with the local homeowners’ association is a necessity.
Any property investor would instinctively opt for large properties because they promise to provide a good return on investment. However, such properties only make up a small fraction of the property market in St. Augustine.
It’s also worth noting that the maximum number of people occupying a single-family home in St. Johns County has been capped at 10. While five-bedroom homes are the desired rental property investment in the area, such properties are few in number. The most ideal investment would be two and three-bedroom properties.
You also want to consider what kinds of tenants you’re looking to rent to. Understanding their needs and lifestyle will help you select a property that fits with your target demographic.
For property investors living outside of St. Augustine, it’s crucial that you hire a credible property management company to oversee your rental property. At Suncastle Property Management, we provide end-to-end services that will help you earn a great return on your investment.
Even as a local property investor, you stand to benefit immensely from the services of a property management company. A reputable management company would offer turn-key services that include property marketing, tenant screening, and property maintenance as well as emergency repair services.
Such companies hire experienced professionals to handle every aspect of your rental property’s management. This eliminates the hassle involved in taking care of the property and managing the renters. Some companies also provide detailed financial reports to keep you informed on your property’s performance.
Many of the neighborhoods in St. Augustine are overseen by a homeowners’ association. It would be prudent to find out more information on the local association and the regulations in the neighborhood you intend to invest in them. This will inform you of the level of upkeep that is required as well as any possible restrictions on properties in the area.
The prevailing property tax rate in an area will have an impact on your bottom line. In St. Augustine, the average effective property tax rate stands at 0.96%. This tax rate is applied to the assessed value of the property and not the appraised value of the house.
Finding the right property in the St. Augustine rental market need not be a stressful affair. The most important factor to remember is investing in the right neighborhood and finding ways to keep your renters happy. The tips mentioned above can help guide you along your property investment journey.
At Suncastle Property Management, we have an in-depth understanding of the local rental market in St. Augustine. Our team of professionals goes the extra mile to ensure that each of our clients’ rentals perform well. Get in touch with us today to access exceptional property management services!