Does the city of Hollywood rank among the best places for rental income in Florida? Let's find out!
As a broker who specializes in the South Florida Metro area, I have to argue that Hollywood is one of the best places for rental income in Florida. The surrounding towns of Oakland Park, Cooper City, Davie, and others are fabulous… but Hollywood has something special.
That being said, one of my firm's mottos is "make informed decisions" - so I'm going to use this article to back up the claim that Hollywood deserves a spot of the list of best places for rental income in Florida. Read on to find in-depth analysis and primary research of rental rates for Apartment dwellings of 10+ units (state land-use 03).
Research includes sales grid with metrics for price per unit, price per square foot, capitalization rates, gross rent multipliers, unit breakdown, and rent surveys.
If you’re looking for research in an area which is not included in any of these posts feel free to call me anytime to request research specific to your property and location.
How does Hollywood Weighs in Among the Best Places for Rental income in Florida...
(Costar Submarket Report)
The Hollywood Submarket has attracted a fair amount of apartment development over the past five years. One of the reasons that Hollywood ranks among the best places for rental income in Florida is that the submarket's lower than metro-average rents made the area popular with renters that want affordable alternatives to Downtown Fort Lauderdale or expensive premier suburban submarkets that lie to the west, such as Pembroke Pines/West Miramar.
Close to 1,000 units came to market over the past five years, increasing the submarket's inventory by 10%. About 340 units are currently in the works. Due to the size of this submarket, vacancies spike when large projects deliver. But strong demand allowed vacancies to retreat towards their historical average before the coronavirus pandemic ensued in early March.
Consistent demand underscores Hollywood, Florida's position as one of the best places for rental income in Florida. Amid significant deliveries, relative to the size of this submarket, and on the back of the coronavirus-driven rising economic uncertainty, the forecast is calling for vacancies to rise only mildly over the next year.
Sales volume for the submarket was healthy, before the coronavirus pandemic onset, totaling $97.6 million, compared to $150 million the prior year. Deal volume has subsided considerably since early March, a trend that is consistent with both the Fort Lauderdale metro and the country.
Investors are attracted to this submarket as pricing generally remained below the metro average over the past five years. Most deals over the past few quarters involved 2 and 3 Star buildings. As this submarket has grown over the past decade, it has consistently gained popularity with some national institutional investors, including JP Morgan Chase and Starwood Capital.
Rent Survey - West Hollywood Florida
The following are rent surveys for 1 and 2-bedroom apartments in Oakland Park. We invite you to utilize the rent surveys provided below in researching your investment property or a prospective purchase.
That being said, if you're considering selling or acquiring a residential investment property it's best to get the most up-to-date information to support your decision. In this case, please contact Peter Dacko for a complementary Proposal to Market. This Proposal to Market will include the most current rent surveys and other information complied specifically for your subject property.
Comparable Sales - West Hollywood Multi-Family Investment Properties
The following document is a comparable sales sheet for multi-family apartment buildings in West Hollywood of 5 or more units.
Why Comparable Sales?
The market or direct sales comparison approach is a strategy to estimate the of value of a property. In this approach we undertake a process of comparing market data - that is, prices paid for similar properties, prices asked by owners, and offers made by prospective buyers or the tenants willing to buy or lease.
Typically a comparison grid is used and adjustments are made to each comparable sale used for major differences between the comparable and the subject property. These adjustments are made for factors like location, construction quality, and significant amenities. In this approach (the market/direct sales approach), the attempts are made to both gauge and reflect the anticipated reaction by a typical purchaser to the subject property.
Taking this approach can sometimes have beneficial outcomes for the estimated value of your property as compared to other appraisal strategies. As a broker, it's my job to establish the best value I can in any property I bring to market. That's why I spend the time to create comparable sales sheets and establish the value of my client's property.
What are Comparable Sales?
The market or direct sales comparison approach to an estimate of value is a process of comparing market data, that is, prices paid for similar properties, prices asked by owners, and offers made by prospective buyers or the tenants willing to buy or lease. Typically a comparison grid is used and adjustments are made to each comparable sales used for major differences between the comparable and the subject property for such items as location, construction quality and significant amentias, etc. In the market approach, the attempts are made to both gauge and reflect the anticipated reaction by a typical purchaser to the subject property.
When I research comparable sales, I'm researching properties that are similar to a subject property in most respects. I do this research for each subject property that I'm considering taking to market. I determine if another property is a comparable sale if
- The property is located in a nearby location.
- If it has recently sold for a fair market value.
- It has other pertinent characteristics that are similar to the subject property.
The selection of comparable sales is in most appraisals is the single most determining factor in establishing the value of the property. It is essential to fully research the local real estate market and determine which comparable sales represent the best value characteristics of the subject property.Comps
If you're interested in receiving the most up-to-date rent surveys and comparable sales for your subject property, please contact me for a complementary Proposal to Market. My firm, Media Realty enables our clients to maximize their net returns by providing the best information. This allows our clients to make the most educated decision in a timely manner. Let us create value for you!