20 May Buying a Rental Property? Here’s What You Should Know
It is no secret that buying rental properties continues to be a profitable investment. In fact, the recent growth of Austin property management only emphasizes the rise in number of real estate investors in this market. But if you’re new to the real estate landscape and want to buy a rental property, it is better to work with a local and professional real estate agent and property management partner.
When it comes to becoming a landlord and acquiring a great tenant , there are a lot of variables involved that often befuddle and overwhelm investors. If you want to make the right investment decisions and gain high ROI (return on investment), a property manager can help you evaluate the potential growth, highlight potential risk, and provide strategic steps to move forward.
What Constitutes a Rental Property?
A rental property refers to a purchased real estate by an investor to rent out to one or more tenants. You can view rental properties through the lens of residential and commercial properties.
Residential properties involve apartments, condos, and single-family homes. On the other hand, commercial properties involve office buildings and zoned industrial buildings. As a rental owner, your focus of attention should revolve around residential properties.
When it comes to owning a rental property, investors should be more familiar with changing trends in 2021. Even if you’re an experienced rental owner/landlord, it makes more sense to hire a property management partner to communicate with your residents, take care of repairs and so much more.
Benefits of Buying a Rental Property
As a rental owner, you may not realize it, but a property management partner can help you deduct expenses. So, not only do they help you manage your rental properties, but they also help you file more accurate income tax returns. For example, you wouldn’t want to miss certain deductions like, maintenance costs, taxes, and interest.
The value of your property increases over time – with the right rent estimate in place, your renter’s costs will be able to cover the mortgage, maintenance, taxes, and insurance – earning you a ROI (return on investment).
A financial expert and property management partner might advise you to diversify your rental properties. It is an effective way to mitigate risk and pave the way for more opportunities. For instance, if you somehow lose 401(k) money, you can count on your rental property’s home equity.
What Does it Take to Buy a Rental Property?
In layman’s terms, you will need to find and purchase the rental property, find a suitable renter, and cover the required costs. However, becoming a real estate investor does require much more than that. As a landlord, you will need a strategic approach to head in the right direction. From the property search to saving an appropriate maintenance budget to setting a fair market rent price, a property management partner can help you establish key factors.
Get Property Management Partnership
In most cases, rental owners get loan pre-approval, set a dedicated budget, cover costs, and then opt for a property management partnership. And do keep in mind that before you hire a property manager to manage your rental property, you will be able to review the upfront and recurring costs in detail, in addition to all the service inclusions that your PM will provide.
Search and Buy Potential Rental Properties
While you can count on your real estate agent to scout neighborhood attractions and help you find the right deal in the perfect location, your property management partner can help you assess the location, property taxes, property condition, average rent, and amenities.
Landlords can also reach out to a real estate team (local agent and property management partner) to learn more about the local job market and local transportation facilities. In the end, the purchase decision will be yours to make. So, your objective should be to get as much information as you can from the start.
What Can You Expect from a Professional Property Management Partner?
Whether it’s managing properties on a daily basis or initiating the process to gain a renter, a property management partner will be ready to help you every step of the way. Contrary to misguided perception, you don’t have to be a seasoned rental owner or investor to opt for a professional property management partnership.
So, if you’re planning to buy your first rental property, it is even more important to seek out the help of experts who understand the dynamics and changing trends of the real estate sector – especially in the extremely competitive Austin, TX market. Remember, it’s the value your property manager brings that can simplify the process of reaching your financial goals with your investment.
If you want to follow in the footsteps of experienced landlords, hand over the burden of buying and managing a rental property to a professional property manager. Furthermore, property management offers a personalized approach to managing your rental property.
One notable benefit is that your PM will manage the maintenance that will undoubtedly come about when you own real estate. And part of that process is receiving updated and detailed reports about maintenance work or repair. In time, you’ll learn just how much risk you can minimize and the profits you can earn by having the right guidance and team on your side.
Primarily, these individuals help rental owners align their investment objectives with changing an ever changing real estate landscape. But most importantly, a professional and experienced property management partner will ensure that your property is always well maintained, your tenants are properly communicated with, and that you stay on track with a devised strategy to meet your financial goals.
There is more to rental properties than investors realize in 2021. Interestingly, even experienced property investors must continue to educate and inform themselves about the changing real estate market. But since there is so much information to know about owning a rental property and managing renters, having a real estate team on your side to help you make sound investment decisions is of utmost importance. The last thing a rental owner needs is added stress or excessive burden of responsibilities. Hire the professionals that do this work day in and day out so that you don’t have to!
Take some time to educate yourself about the current real estate market conditions and how it favors property investors. And then when you’re ready to purchase that real estate investment, hire a property management company to help you devise a strategic plan to help you manage one or more rental properties efficiently. On the surface, self-managing your rental property or properties may appeal to you, but it takes a personalized and professional touch to mitigate risk and gain high ROI.
If you’re ready to partner with a reliable Austin, Texas property management company to help you manage your rental properties, reach out to us today!
BDM@1836pm.com | 512-994-4323 | 1836propertymanagement.com
By: Kayla Gonzales, 1836PM Marketing Manager