If there's one thing experienced real estate investors know, it's that recessions create opportunities. When sales slow, sellers are forced to stabilize or lower prices.
In other words, now may be the time to buy undervalued properties. The question is, how can you protect your investment and see a real ROI in the long run?
To manage your portfolio of stocks, you probably partner with a financial advisor. Why not work with property management experts to manage your investment property?
Read on to learn why partnering with a property management company can protect your investment property.
Finding the Right Tenants
If you intend to invest in rental properties, you're going to need renters. Many new real estate investors don't realize that finding the right tenant isn't as simple as listing your property online and waiting for someone to sign the lease.
If you have to find new tenants year after year, there's room for improvement. Property managers will use a thorough tenant screening process that can improve tenant retention and reduce financial burdens like missed rent. By resigning tenants year after year, you'll save money on marketing, move-in ready maintenance, and more.
To be a truly successful property investor, you'll need to maintain and improve your property over time. Steady maintenance will prevent value degradation so you don't lose money if and when you decide to sell. Active property upgrades will increase property value, allowing you to increase rent and sell at a profit.
If your goal is to earn a passive income, outsourcing tasks like maintenance is a must. Rather than scheduling individual maintenance services, hire a property manager.
Property managers will answer all emergency calls and maintenance requests. They will also partner with the best contractors in Columbus who offer the best prices. A combination of preventative and reactive maintenance will not only save you money but increase your profits.
Tracking Financial Needs and Growth
Earning a profit on rental properties isn't a given. In addition to mortgage payments, you may also need to consider:
- Marketing costs
- Maintenance costs
- Property taxes
- Basic utilities
- HOA dues
To cover these costs and earn an income, you'll need to keep track of your past expenses to estimate annual costs. In addition, you'll need to conduct regular market research to determine how much rent you can charge based on things like location and amenities. It may seem appealing to charge more to cover deficits, but increasing rent without a strategy can alienate potential renters.
Protect Your Investment Property with PMI Columbus
Though the real estate market is in flux, it's not a bad time to purchase an investment property. However, turning a profit isn't a guarantee. Partnering with property management is the best way to maximize your ROI and protect your property for the long run.
PMI Columbus offers full and customizable property management services in the wider Columbus area. Thanks to our state-of-the-art technology, you'll know exactly how much your investment property is thriving in real time. Contact us to learn more about how we can help.