Should I Invest in St. Petersburg, Florida Rental Properties?

St. Petersburg, Florida, a sunny and vibrant city located in the Tampa Bay area, is one of the best cities to invest in rental properties right now. St. Petersburg holds the Guinness World Record for most consecutive days of sunshine at 768 days, starting back in 1967. If that alone doesn’t convince you that a St. Petersburg investment will be a prosperous one, we’ll tell you all you need to know about why you should invest here.

Where is St. Petersburg, Florida?

St. Petersburg, Florida is located on the gulf coast of Florida in the Tampa Bay area. Downtown St. Petersburg is a short 15 minute drive to St. Pete Beach, a 25 minute drive, or 50 minute ferry ride, from Downtown Tampa. St. Petersburg is located near some of the most beautiful and relaxing beaches including Pass-A-Grille beach, Treasure Island, Sand Key, and a plethora of others, making for the perfect beach day.

For those looking for a road trip or a quick get away, St. Petersburg is approximately two hours away from Orlando and five hours away from Miami. Though the perfect starting point for a road trip, St. Petersburg residents and visitors will be more than happy to stay right where they are.

Why invest in St. Pete?

1.) St. Pete is ranked the Best Run City in Florida

If you’re reading this, you’re probably looking to get the answers to why you should invest in St. Petersburg, Florida. We’re here to tell you that St. Petersburg is the perfect investment destination for multiple reasons, including its location, community, and a booming economy and business climate. 

After evaluating cities across the United States in operational efficiency, WalletHub ranked St. Petersburg as the best run city in Florida, coming in at #38 nationally. To come to this conclusion, the categories taken into consideration included:

• Financial stability
• Education
• Health
• Safety
• Economy
• Infrastructure and pollution

A city recognized for being the best run in the state provides strong credibility for investment opportunities, attracting visitors and new residents from across the country seeking rental properties and a steady living situation.

2.) Competitive Rental Market

Because St. Petersburg is a peninsular city, there is limited room for developmental growth. Though Downtown St. Petersburg will see an influx in multifamily residential units within the next few years, expansive development across the peninsular is impossible due to St. Petersburg’s geographical location and pre-existing development.

The limited opportunity for development means the rental market is and will continue to be competitive. As St. Petersburg continues to flourish as a city, people across the United States continue to have a peaked interest in moving here. While the population increases, the rental market will only continue to get more competitive and owning a rental property will remain highly beneficial. 

The increasingly competitive nature of the St. Petersburg rental property market means that as a rental property owner, your investment will flourish and your cash-flow will remain steady. If you’re looking to invest in a city where rent is continuing to rise and tenants will compete for your property, St. Petersburg is the place for you.

3.) Vibrant Community 

St. Petersburg is known for its active, inclusive, and vibrant community. Home to dozens of museums, galleries, and theaters, this city is filled with arts and culture, and there is never a boring day. The streets are lined with palm trees and the walls and buildings are beautifully decorated with colorful murals showcasing the works of local, national, and international artists.

St. Petersburg hosts a variety of diverse events throughout the year, including the Grand Prix of St. Pete, an annual MLK Jr. Celebration, SHINE Mural Festival, St. Pete Pride, and St. Pete Run Fest. In addition, you can find daily events like farmers markets, open mic nights, and waterfront yoga throughout the city sponsored by local businesses.

Whether you’re a concert lover, foodie, nature enthusiast, or coffee shop connoisseur, St. Pete has checked every niche off the list. I Love The Burg, your go-to website for all things St. Pete, details guides for a variety of interests and events. The locals’ love for St. Petersburg is evident, making this beautiful city so inviting and attractive for renters across the country.

What Are the Best Neighborhoods to Invest in St. Petersburg, Florida?

The best neighborhoods to invest in St. Petersburg, Florida are Palmetto Park, Downtown St. Petersburg, and Kenwood.

1.) Palmetto Park

Palmetto Park is the ideal area for an investment property. Located just 10 minutes outside of the main Downtown St. Petersburg area, Palmetto Park provides residents with a suburban feel, convenience, and vibrant atmosphere.

Palmetto Park’s neighborhood has a wide variety of investment opportunities and property types, including single-family and townhomes. Palmetto Park has seen some recent redevelopment offering investors the luxury of investing in a newly renovated home, appealing to renters seeking a modern and updated living experience.

The average rent in Palmetto Park ranges from $1.7K – 3.45K. 

2.) Downtown St. Petersburg

Downtown St. Petersburg is a vibrant urban area attracting a diverse group of people ranging from young professionals to retirees. The benefit of investing in Downtown St. Petersburg is that the area attracts a significant number of renters due to the recent development of modern high-rise apartment and condominium complexes.

Rent prices are typically higher in Downtown St. Pete as renters are willing to pay for amenities, luxury, and a central location. The initial price of an investment in Downtown St. Petersburg may be more expensive than that of other areas like Palmetto Park. However, your monthly income will be substantial and constant if your property is managed efficiently.

The average rent price in Downtown St. Petersburg is $3,377 for all bedrooms and property types.

Hiring a professional property manager to oversee the daily operations of your rental property, from start to finish, will significantly expedite your return on investment. 

3.) Kenwood

Right on the outskirts of Downtown St. Petersburg is Kenwood, a charming residential neighborhood known for its historic bungalow style homes and picturesque streets. Its close proximity to both Downtown St. Petersburg and the beaches, while still maintaining the feel of a true suburban neighborhood, make Kenwood an enticing area for renters and an ideal location for an investment property.

Aside from its charming aesthetics, Kenwood is especially popular because of its close-knit community and artistic influence. The neighborhood residents and local businesses host intimate get togethers and unique events like happy hours, art walks, folk shows, and Sunday markets.

Not only is Kenwood a highly-rated neighborhood, but a promising area for an investment as rent prices continue to rise. The average rent in Kenwood is $2,200.

How to Maintain a Successful Rental Property in St. Petersburg, Florida

As St. Petersburg has become one of the most sought-after cities in the United States, purchasing a rental property investment here would be more than a sound decision. A rental property investment in St. Pete gives investors the potential to generate a substantial passive income and return on investment.

Hiring a professional property manager will ensure the ability to maintain a successful rental property in St. Petersburg, Florida. A property manager will assume responsibility for all daily management operations for your property, allowing you to earn a profit without having to tend to your property and tenants’ needs. 

At The Listing Real Estate Management, we offer the best property management services in the Tampa Bay area. Our team works hard to offer the best service through a personal, proactive, and dynamic approach to residential management. Our hands on approach includes:

• Marketing and Leasing
• Tenant Screening
• Rent Collection
• Maintenance and Repairs
• Rental Property Accounting

We call St. Petersburg, and Tampa Bay home, and as a boutique property management company, we take pride in knowing each single-family, condominium, and townhome we manage throughout the Tampa Bay Area. We’ll ensure your single-family home is maintained and thriving throughout your rental management experience.

With the Listing Real Estate Management on your side, your St. Petersburg rental property is sure to thrive. Whether you’re in the process of purchasing an investment property or don’t know where to begin, our professional property managers and licensed Florida real estate agents are here to help. 

Contact us today at The Listing Real Estate Management, your boutique property manager, to get started on your investment property search today!