The most interesting questions that property investors ask are:
what should I buy, and how much can I get in rent?
Investors have a choice when they select the realtor they want to work with to buy investment properties.
You can buy from a realtor who has never managed a property before, or you can buy from a realtor who has worked on an entire portfolio of properties for many years and managed hundreds of tenancies. If you are an investor or a potential rental property owner, the best way to answer those two questions about what you should buy and how much you can charge is to work with a realtor who has experience in property management.
Know the location and the rental market in that area
When you are planning to buy investment property, the most important things to consider are location, and whether the area is good for rentals, the HOA restrictions that might be in place on homes in particular developments or communities and the overall rental value, particularly how easy the house will be to rent out to qualified tenants.
There are several red flags that go up when we hear people have bought investment property without talking to a property manager or using a realtor who is also a property manager. It can be sad for investors to realize too late what a big mistake they have made. For example, we have had people call and say they just bought a property and they were told they could get $2,000 per month for it in rental income. We’ll have to deliver the bad news that they will actually be getting around $1,750 per month. This obviously lowers the return on their investment, and it’s disappointing for people. When you work with a company like Home Property Management, we will quote a rent and follow up by producing that rent because of our experience in the field.
Another situation we get a lot is people calling us because they have purchased a home in a development with restrictions that they did not know about or understand before buying. For example, they might find out they can’t rent their home out for a year after purchase, or they are only allowed to have one tenant per year in a certain community. The pressure is really on in those situations because if your tenant moves out in eight months because of a job loss or some other problem, you cannot re-rent the home and the property has to be left vacant. Using someone with property management knowledge before you buy will prevent situations like these from happening.
If you have any questions, or you’re thinking about buying an investment property in Palm Beach County, please contact us at Home Property Management.