Landlords have a lot to keep track of when they are renting properties out to tenants. Having gone through the arduous process of renovating a property to increase its rental value, it is only natural to want to maximize the impact of your investment. A property manager can handle all of the most important tasks that landlords need to stay on top of and enable you to focus on the bigger picture.
Maximize Your Occupancy Rates
Once you have finished renovating your rental property and bringing it up to the standard you desire, you want to get someone moved in and paying you rent as soon as possible. However, this is often easier said than done. You might be able to snap up a bargain property in a desirable part of town and renovate it as a rental, but the property market is fickle. There are always going to be factors at play that are beyond your control.
Not only do you need to find potential tenants, but you also need to be able to evaluate them and decide whether they are right for your property or not. You don’t want to inadvertently let a wolf into your barn. Fortunately, there is a simple solution to this problem – hire a property manager! Property managers know how to find the tenants that are best-suited to the property that you’re offering. They can maximize your occupancy rate without compromising on the quality of the tenants they find.
Focus on Your Next Property
Once you have successfully renovated your new property and you have some paying tenants living there, you can then begin to think about your next move. Most landlords have to divide their time between seeing to the needs of their new tenants in the last property that they renovated and searching out the next real estate opportunity for their portfolio. However, if you have a property manager taking care of your property for you, you are free to focus on your future.
This enables you to be more versatile as an investor and reduces the time between opening up new revenue streams. You will be able to build and manage an empire before you realize it.
Take Advantage of Local Experience and Expertise
Most real estate investors will make their first investments relatively close to home. Some people try to reduce real estate investing to nothing more than a series of equations and algorithms. The thinking behind this approach is that by looking at the right data, you can predict the fortunes of any property with a reasonably high degree of accuracy. For example, if a property similar to the one that you are investing in has sold for $300,000 then, assuming nothing unexpected happens, you would expect your property to fetch a similar price. Obviously, it is more complicated than this.
But no amount of algorithmic magic can improve upon local experience and knowledge. If you invest in the service of property managers that have already managed properties across multiple states, then you can expand your pool of investing targets with confidence. For example, BMG, Bay Property Management Group, is a property management business that operates in DC and the surrounding states. If you are considering investing in a rental property in this area, then you should check them out –you can find more details here. BMG will be able to navigate all the local laws and regulations while bringing first-hand knowledge of real estate in the states they operate in.
Maximize the Return on Your Investment
Having invested the time and money necessary to renovate a property prior to renting it out, you obviously want to do everything that you can to maximize your returns and ensure that your investment was worthwhile. Hiring a property management business to take overseeing to the day to day needs of your property gives you total peace of mind that there is someone keeping on top of the essential tasks.
Hiring a property manager will cost you more in the immediate future. However, you will reap the rewards of your investment over time. It is very freeing when you realize that you no longer have to concern yourself with some of the more tedious and time-consuming aspects of your work.
These are just some of the reasons why we think a property manager is a smart investment. You can work with individual managers or with property management companies depending on the scope of your plans.