New Tampa Rental Market Update

The MLS can provide a good indication about the New Tampa Rental market. By looking at the Rental Homes in New Tampa that rented in the last few months, along with the current inventory, we will be able to make some analysis of the current rental market and what homeowners must do to ensure their home gets rented in the least amount of time.

Currently, there are 211 properties listed for rent on the MLS in the 33647 zip code. This number has been steadily climbing the past few months. The communities with more then 4 active listings per subdivision are as follows:

Arbor Greene (Single Family Homes) - 15
Canterbury Trail (Townhomes) - 8
Cory Lake Isle (Single Family Homes) - 19
Cross Creek (Single Family Homes) - 10
Equestrian Park (Condos) - 4
Faircrest (Townhomes) - 6
Grand Hampton (Single Family Homes) - 20
Heritage Isle (Single Family Homes & Townhomes) - 9
Hunter's Green (Single Family Homes) - 7
Live Oak Preserve (Single Family Homes & Townhomes) - 26
Pebble Creek (Single Family Homes & Villas) - 5
Stone Ridge and Stone Creek - (Townhomes) - 7
Tampa Palms - (Single Family Homes, Townhomes & Condos) - 27
The Hammocks - (Townhomes) - 14
The Highlands at Hunter's Green (Condos) - 8
The Villas (Condos) - 9
West Meadows (Single Family Homes) - 8

From December 1, 2007 - January 9, 2008 there have been twenty six (26) properties listed as Rented in New Tampa. Fourteen (14) of these were rented in December and the other twelve (12) in January according to the MLS data. Considering the holiday and the fact that twenty one (21) homes were listed as rented in November 2007, it is likely that many of the twelve (12) properties rented so far this month could actually be attributed to December. Counting the properties in November, 47 properties have rented in the past 69 days.

At the pace of 47 properties every 69 days, that would be 309 days to rent all of the properties currently on the market - and this does not take into account any of the rental properties that will come back onto the New Tampa rental market. During the peak period of 2007 (April 1 - July 31) an average of 28 homes rented every month, with a high of 38 in July. Needless to say, even at a rate of one property renting every day, there is still 7 months of inventory.

What does this all mean? Well, a few things must be considered first. It is likely, and probable in fact, that many homes that have been rentals for a while were not listed on the MLS last year, but are being listed now - because homeowners are finding it more difficult to find tenants this year then in years past. With that being the case, the true "rental rate" that can be seen in the MLS is likely significantly higher then what can be determined in the MLS. Also, with so much supply and rental prices dropping as homeowners look to do anything to get a tenant, many would be buyers are finding it makes much more sense to rent since they can do so for a fraction of the cost for a comparable home.

Unfortunately, even if the historical rental rate is higher then what can be seen in the MLS and more people continue to decide to rent then to buy, it is likely that a portion of the current units listed for rent on the MLS will NOT GET RENTED IN 2008! This is certainly not great news for anyone, particularly those that are reluctant to drop rental prices in an effort to increase demand.

Price is not the only differentiator a tenant will consider, but given the current quantity of homes available in just the 33647 zip code, it would be wise for any Landlord to ensure their home is listed at a competitive price in TODAYS MARKET.