What's the best way to start real estate investing? While there are plenty of options, many new investors start with a rental property. However, tackling the ongoing tasks required for successful rental properties requires dedication and know-how.
Why is hiring a property management company a good idea for rental real estate investing? If you own properties in multiple markets, having a property manager in each market can help you avoid better properties, find good tenants, conduct maintenance and repairs, and collect rent. Keep reading to learn more about why a good property manager is an excellent addition to your real estate team!
Why Choose Rental Properties
Property investors can make money in real estate in a few different ways. When getting started in real estate, it's important to choose a strategy that meets your lifestyle and long-term goals. However, many investors miss out on significant income that rentals can generate because they don't want to deal with the work to keep them occupied.
That's understandable! However, rather than avoid adding rental investments to a real estate portfolio, a real estate investor can hire a property management company to do the work and maximize returns.
Start Small (Then Grow)
Even if you only have one rental property, there are several reasons why you should hire professional management services early on instead of trying to do all the work yourself:
When looking for a management service, consider your needs. While some real estate investors might not need a full-service solution if you only have one property, outsourcing a few critical tasks can help free up your time to find your next property and keep your rental as a passive investment.
Most buy-and-hold investors choose between two property management options:
- Full-service management. These companies manage rental properties of any size for portfolios of one or more properties. As your portfolio grows, having full-service help reduces the time you spend managing rentals while your income grows. Full-service solutions can handle everything from property maintenance and rent collection to finding the right tenants and creating and enforcing leases.
- Leasing only services. If you only have one or two properties and you have a good handyman or contractor to keep rentals in good shape, you might only need help with leasing services. This means your property manager finds and manages renters, collects the rent, and creates lease agreements. You would handle or coordinate services for anything else the property needs to continue generating rental income.
Whether you choose a little help (or a lot), finding the right property manager is critical to maximizing returns for investment properties!
Finding the Best Property Managers Is Critical for Success
While there are probably plenty of property management companies near your rental property, not all of them offer the same services (or quality of services) the investors need for success. Adding a property manager to your real estate investing team requires research to choose the best fit for your properties and goals.
To choose an excellent property manager, make sure their services meet your needs (and budget). Talk with them about how they conduct tenant screenings and learn about their processes and experience in the market. Partnering with a property management company should become a long-term relationship since rental properties are a long-term investment strategy for real estate owners. Pick a management team that listens to your goals and operates your properties profitably!
What If You Invest In More Than One Real Estate Market?
Successful investors can tell you that buying real estate investments in multiple markets is one of the best ways to build significant wealth! However, when choosing rental properties in different markets, one property manager won't be enough.
While it might seem expensive to hire a different property management company in every city where you own rental properties, it's essential for success! Local property managers understand their market (including landlord-tenant laws and regulations) and are the best resources to make every rental property a success--no matter the location. Logistically speaking, hiring one rental manager to travel and oversee rentals in multiple locations can become a more costly approach without the returns you need for success.
One of our best insights about real estate investing for beginners is to hire a property manager in each market where you choose investment properties!
Build Your Real Estate Investing Portfolio and Team With Privy!
Adding rental properties to your real estate portfolio is an excellent way to generate long-term investment income! However, we know that the idea of being a landlord isn't everyone's favorite way to become a real estate investor.
Hiring a property manager is one of the best additions you can make to your real estate investing team when owning a rental property. You'll enjoy a hands-off strategy that generates passive income to support your goals and future portfolio growth!
When you're ready to find your next investment property, make sure you have the Privy Advantage. Our platform scours listings in markets throughout the country then delivers the best properties and deals to your inbox. Whether you prefer fix-and-flip investments, rental properties, or wholesaling, reach out to learn more about how Privy can help build your portfolio!
Who else should be on your team? Find out when downloading our free "Assemble Your Real Estate Investing Team: A Worksheet!”