Did you know property management companies can help you manage your real estate portfolio?
That's right!
These companies do more than just property maintenance and rent collection. They offer a full-service experience so that you can manage all your real estate investing from one dashboard.
If you're still in the decision-making stage, consider buying your first property through a management company like Kerr Properties, Inc.
Here are a few more ways to leverage property management for portfolio growth.
Choose a Real Estate Income Model
Never start a real estate portfolio without an ROI plan. This term stands for "return on investment." You must invest your capital wisely.
When deciding on a property, consider all fees beyond the listing price. You have to pay for property taxes, inspection fees, repairs, and upgrades. You would also need to get a professional appraisal to understand how much the property is worth.
The above points add up in cost; they're only just the start. You still have to pay for marketing services, tenant procurement, and routine property maintenance.
How are you going to get the most money from these services?
At this point, you'll need a real estate model. Draw up a list of pros and cons for buying and selling vs. buying to rent. Success in these areas depends on a number of factors, including location.
You may generate higher ROI percentages through renting if you're buying properties in college areas, financial districts, or other neighborhoods that see higher rental numbers. Thus, you should study the housing prices, rental rates, and leasing activity in specific areas; you can even find this data online.
Leverage Tenant Procurement Services
If you decide to build a rental portfolio, you'll need a reliable tenant procurement service. Tenant procurement entails marketing, screening, and leasing.
An experienced property management company can save you money through targeted marketing campaigns that promote your listings to tenants most suited for your property. They also apply strict tenant screening standards to ensure only the most responsible tenants are short-listed for consideration. This helps you save money on property maintenance, rent collection, and vacancies.
Property managers work with real estate legal teams to create lease agreements that clearly define terms, rules, and rental rates. Attracting responsible tenants also saves you the cost of lease breaking.
You don't have to worry about the cost of inaccurate background check services, either.
Property managers screen for tenants using official information databases, like national criminal databases. They check for government-approved IDs, income verification, and past rental history. Managers also call previous landlords to learn more about past tenants' behavior in regard to rent collection, landlord-tenant relations, and noise levels.
Property Management Generates Lease Renewals
One of the best ways to increase your ROI numbers (and your portfolio) is to invest in a lease renewal strategy that retains your most responsible tenants.
You can do this through excellent property maintenance, upgrades, feedback, and incentives.
Create a Profitable Portfolio
Don't pay the high costs of properties that don't produce adequate ROI numbers. Pick the right income model. Next, work with a property management company that takes tenant procurement and lease renewals seriously.
Let Kerr Properties, Inc. guide your portfolio to success. Learn more about our philosophy and services. Contact us today to speak to an expert!
