Rental Market Update

Long-Term Rental Snapshot

As rents are softening (flattening or decreasing) in most areas, coupled with longer leasing times (on a national average) we have seen an uptick in March as we kickoff the better leasing times of the year for the next few months. When it comes to leasing properties, the minimum need for a viable product and pricing aggressively is the name of the game. “Value add” can be a tricky scenario currently, use caution not to over improve your properties in the current market.

Short-Term Rental Snapshot

Tampa’s STR market is showing signs of a seasonal slowdown, with guests booking more last-minute and pushing back on price. While long-term metrics remain strong, the number of active listings has dipped sharply in recent weeks and months, a sign some hosts may be stepping back.

•    Last 7 Days: ADR (Average Daily Rate) dropped to $164 and RevPAR slid to $127. Listings fell to 3,429 — down over 1,000 from the yearly high.
•    Last 30 Days: Despite a small drop in occupancy, ADR climbed to $171, and RevPAR rose to $137. Still, guests are booking just ~19 days in advance.
•    Last 365 Days: ADR is up 4% ($149), and RevPAR rose 10% ($102). But listing count peaked at 4,462 and is now on the decline.

Takeaway: Less supply could mean more opportunity for well-positioned hosts. Pricing smart and delivering value are key to standing out in this tightening market.

Based on the current housing prices,
should you buy more single family homes right now for long term rentals?

From our perspective, paying the median housing price (around $400-425k) the returns for a gross rental are predicted to be 6-7%, when you factor in all the other expenses it just doesn’t make sense unless you get a great price on a property that needs work.

If you can make 4-5% at a bank, relatively safe, we think that can be a better option unless your rental opportunities will potentially achieve a higher return to factor in the rental risk, repairs, insurance, taxes and mortgage payments.

This is why we recommend those looking to expand their portfolios to look for houses with mother-in-law suites or duplex properties (or larger).

Interest Rates & Economy Snapshot

Upcoming US Economic Reports
4/4/2025 detailing the data on jobs added, unemployment rate and other labor statistics

The most recent jobs report for February confirmed unemployment at 4.1% remaining stable from the month prior nationally with just 3.6% in Florida.
(U.S. Bureau of Labor Statistics)

The graph below shows the % chance that the FED lowers rates at the next meeting and by how much. The next meeting is scheduled for May 7th.

Tampa News @TampaTomorrow

St. Peter News @StPeteRising

Housing Market According to Zillow

I like some of the data from this guy but sometimes there is a bit of sticker shock and “doom and gloom” so keep a macro view on real estate but he has some good information.

I do think that values will be a bit flat in the general Tampa Bay area for the next year, with a lot of people renting their homes versus selling (due to their lower rates). Additionally people are choosing to rent for a bit longer because of the higher rates, homes may sit longer on the market from a more conservative, limited buyer pool. Generally speaking it is still cheaper to rent than buy.

WATCH IT HERE

Book/Podcast Recommendation

Estate Planning

At least once a year I meet with our estate planning attorney to review new businesses, investments, family changes, etc. Once you do an initial plan, the maintenance year to year is fairly minimal but so important, who wants the government to decide what happens to your stuff if something happens to you?

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💰Tampa Bay Investor Meetups

Every month we host local meetups through www.tbreia.com where there are multiple meetings a month around the area. All meetings are 7-9pm with a wide variety of topics being discussed. We’d love to see you out!

⭐⭐⭐⭐⭐ We’d love a 5 Star review!

Give us feedback on Google! g.page/r/CRouDiFuPtWwEB0/review

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💭Closing Thoughts

“Real estate is not just about property, it’s about people” – Tom Ferry

See what else I’m up to: https://linktr.ee/Jeremykloter

That’s it for this month! See you next time!