Property managers are known for just that: managing properties. But there’s so much more they can bring to the table beyond the day-to-day property management tasks. In fact, with their extensive knowledge of rental properties, a property manager can help you build your real estate investment portfolio over time.
An investment property is a property not occupied by its owner that is either used to generate rental income or held for capital gains.. Investment properties include commercial properties.
However you decide to invest, partnering with a property management company has its advantages. You’ll have an industry professional on your side as an advisor to help you make the right decisions.
This post will Today, we’re going to look at the term investment property beyond the typical landlord role. Then, we’ll walk through five ways that a property management company can work with you to find choose the next best investment for your real estate goals.
Working with a local property management company has a distinct advantage over larger firms. You’ll have access to expertise that’s specific to the area in which you’re investing. Whether you’re new to the market or a seasoned pro, qualified property management companies have proprietary insider knowledge gained through experience.
They’ll know what types of properties are the best investment in a particular location, the rental history of different neighborhoods, and local amenities such as restaurants and other commercial businesses that attract renters. They’ll also be able to clue you in on red flags that might keep renters away.
Finally, they’ll have the scoop on new neighborhoods people may be flocking to.
Beyond local knowledge, property managers are intimately familiar with what renters are looking for, which has changed dramatically in the past two years. According to Buildium’s 2021 Renter’s Report, renters now care far more about the comfort and utility of their individual units, prioritizing features like air conditioning, an in-unit washer & dryer, high-speed internet, private outdoor space, and being allowed to have a pet.
A good property manager has the most updated information on hand, and knows what you can do to raise your property’s value—and even help you target your investments toward specific types of residents, from short-term renters and students to families and working professionals. They will help you position new investments in the current market based on both neighborhood and unit amenities.
If you’re buying an investment property that needs rehabbing, property managers can guide you as to where to spend your money so it’s ready to rent ASAP. Property managers understand market value from a birds’ eye view and can help you stay within your renovation budgets by saving money on contractors or recommending cost-effective ways to DIY a project.
Simple things like $500 invested in landscaping the front yard can raise your property value significantly, allowing you to charge higher rent and, ultimately, collect bigger checks each month. Each unit is different, and property managers can help you pinpoint what needs to be done to get the most ROI, and add up the cost and value of those renovations to determine whether the investment is worth it in the first place.
Property management companies have relationships with quality contractors. They can trust the outcome of their work, and negotiate better prices for you since they bring in business regularly for the vendors they work with. Their built-in network also includes other landlords and property owners; they’re the first to know when someone’s ready to sell a property. This can be an advantage if you’re looking for an investment partner long term.
The most valuable thing a property management company brings to the table is its wealth of industry experience. They can spot a scam from a mile away, steering you clear of time and money-wasting schemes. They’re also aware of things that real estate investors may not necessarily have top of mind, like tax deductions for rental or investment properties.
Both new and experienced Real estate investors have an ace in the hole when partnering with a property management company.
The benefits of hiring a property manager’s services far outweigh the costs, with benefits that grow larger alongside your investments. In fact, finding the right property manager is often the most effective way to expand your portfolio without added risk. It pays not to go it alone