How Landlords Can Use "Rentvesting" to Their Advantage

A new group has emerged in Florida’s competitive real estate market. Rentvesting turns typical clients into savvy professionals who are making strategic decisions. As a landlord, these high-value customers are terrific rental candidates. Here’s how you can make the most of rentvestors in the Sunshine State. 

What Is Rentvesting? 

The traditional approach was to rent until you could afford to buy a home. However, the tide has turned in the modern housing market. Young people want to own property, though housing prices have skyrocketed. For example, buyers should expect to pay over $500,000 for a home in Miami and $400,000 in Orlando. 

Rentvesting encourages buying an investment property in an affordable area while renting in your desired lifestyle location. Then, you use rental income to pay the mortgage and pay for your lifestyle. Meanwhile, you get to enter the property market by crossing a lower barrier.  

How Florida Landlords Can Leverage Rentvesting

Rentvestors view their rental as part of their long-term plan. As a landlord, it’s essential to understand this unique tenant group. Here are five ways to cater to their priorities and position your property as a desirable location. 

1. Highlight Convenience

Experts say rentvestors typically have high incomes from jobs in major cities. If they’re on the go, they may spend time away from their primary residence while conducting business. 

Highlight the lock-and-leave benefits of your rentals. Your management company handles exterior maintenance, package receiving and 24/7 security. Removing responsibilities creates a premium product that attracts rentvesting tenants. 

2. Emphasize the Lifestyle

Rentvestors want their primary residence to be in a location matching their lifestyle. So, speak their language and appeal to their identity as a savvy professional. 

Leverage the best features of your city’s lifestyle. For example, landlords could emphasize strong safety rankings for Pensacola and Fort Myers. Go a step further by highlighting lifestyle amenities for the tenant, such as time saved with an in-unit washer and dryer. 

3. Offer Lease Stability

A 12-month lease is standard for your tenants, though rentvestors are atypical. These property owners have a multiyear financial strategy to build wealth, so consider offering stability through longer leases.

Longer leases could be a solid strategy to encourage renewals, as tenants can stay longer. Give the rentvestor predictability by keeping their housing costs stable for extended periods.  

4. Choose Appealing Properties

Rentvesting involves making a calculated trade-off. By sacrificing homeownership, these tenants want to live a specific lifestyle in a prime location. So, your properties must appeal to their needs.

While Florida has plenty of beachfront property, it’s essential to be selective. Experts say tenants prioritize location in coastal communities, with parks and pools being influential. Enticing locations are more palatable for your tenants who prioritize long-term living. 

5. Spotlight Proximity

Your rentvesting tenants prioritize convenience in their primary residence. Cater to these needs by highlighting proximity to public transportation, central business districts and hospitals. 

Shorter commutes can save them time and money. Florida’s expanding public transportation could lead to more appealing properties later. For example, Miami plans to expand the Metrorail system to Opa-locka and Miami Gardens. 

Capitalizing on the Rise of Rentvestors

As a landlord, you want highly desirable tenants who stay for the long run. Rentvestors check this box, as they’re savvy professionals who understand the business. Courting them for your properties includes catering to their needs and centering on their lifestyle. 

Evelyn Long is a writer that specializes in housing market trends. She is also the editor-in-chief of Renovated Magazine, where she writes essential resources for renters and homeowners. She has contributed to several other publications like the National Association of Realtors and Realty Executives.