Rental market caution flag
The well laid plans of the ever expanding pack of investors -- buying property in SW Florida with the expectation to cover operating expenses with rental income -- while realizing appreciation has hit a snag -- an oversupply of rental properties and a shortage of prospective renters.
In this boom market, many former seasonal renters have taken the plunge and purchased their own home in the Florida sun. This rental property glut represents a fundamental shift from a market where traditionally it was quite difficult and expensive to score an in-season rental.
With the ongoing records being set for new building permits this is not a problem that is going away.
Renter’s Market [Naples Daily News]