How can your property management company help you build a strong investment portfolio?
This should be on your mind as you choose a property management partner and establish your investment goals.
Plenty of property managers can help you find a resident, collect rent, and schedule maintenance. But, if you’re looking for a little more value (and you should be), you’ll want to know how they can help you grow.
A good management partner will deliver access to knowledge, resources, and ideas. You’ll also get an idea of how the market can support your goals and where your next acquisition can be found.
You can build a strong investment portfolio with the help of your property manager. Here’s how to do it.
Leverage Property Management Education and Experience
You can expect that your property manager has years of experience in real estate and residential management. Management professionals spend a lot of time staying current in the industry by taking classes, attending conferences, and networking with other property managers and real estate agents.
You can rely on your property manager’s experience when it’s time to make good decisions and plan your own investment strategy. Property managers will understand better than anyone what makes a good investment property. We work with residents every day. We work with owners and investors every day. We have a large network of vendors and contractors who can help you make renovations and prepare the property for the rental market.
When you talk to a property manager about your investment goals, you can get an idea of what will work and what may come with challenges. For example, you can discuss in detail whether a single-family home is better for you than a multi-family unit, or whether it’s better to buy a long-term investment property versus a short-term vacation rental.
Local Market Knowledge
A talented property manager will have a unique understanding of the local rental market. If you want to grow your portfolio successfully, you’ll need to know what the market rents are, what the vacancy rate is, and how long it typically takes to start cash flowing a rental home.
Your management team can help you grow your portfolio by providing data on neighborhoods, rental values, and residents. As you’re increasing your portfolio, you can have some idea of what your next property will earn and how long it will take to find a good resident.
Identifying Investment Opportunities
Always leverage your property manager’s relationships.
This is one of the benefits to your own relationship. You’ll have access to an entire professional network, which is helpful when you’re growing your own portfolio.
Property managers will know when new opportunities show up before they’re listed or advertised. Your property manager’s circle of professional partners will likely include agents, brokers, and developers. Trying to find your own investment opportunities will take a lot of time and may require resources you don’t have. Partner with a property manager so you’re immediately notified if something comes on the market that fits your investment goals.
Finally, when you work with a property manager before you buy an investment property, you’ll already have someone you trust in place to lease and manage it for you.
Let’s talk about your investment goals and how we can help you reach them. Please contact us at Sunburst Properties.
