PROPERTY MANAGEMENT AND REAL ESTATE INVESTMENT: WHY YOU NEED IT !
I’m sure you’re aware of the many advantages to investing in real estate most especially the massive Return on Investment (ROI) opportunities. However, you’ve probably also heard about the hassles associated with managing your recently acquired properties.
How do you begin to list your properties? How do you find tenants and much more than that, how do you find responsible paying tenants and keep them happy? These are a few questions that when pondered upon too deeply, the impending stress is enough to keep you from investing in real estate.
If you’re a business owner, working a 9-5 with a packed schedule or you are someone who would rather invest your time elsewhere but is still interested in investing in real estate, then property management is the best option for you!
Keep reading and let us show you how property management can significantly simplify your investment journey.
Looking for property management services? Look no further. Luxury Redwood Properties offers property management services. Contact us and let us help you.
WHAT IS PROPERTY MANAGEMENT?
Property management involves all the processes carried out to maintain and take care of one rental property or multiple rental properties which could be either residential or commercial properties. Efficient care of your rental properties involves multiple processes some of which are listed below.
SERVICES OFFERED UNDER PROPERTY MANAGEMENT?
- Collecting rent payments
- Letting and renewing tenant lease
- Executing leases and lease agreements
- Consulting on insurance policies
- Specifying and enforcing landlord and tenants maintenance roles
- Taking care of property repairs and management
- Taking care of the eviction process when the need arises
These are just a few of the roles that your property manager will handle. These roles, however, are dependent on the landowner and how involved the landowner would like to be in managing the property.
Types of Property Management
There are different roles involved in property management which is usually dependent on the type of property. Some real estate companies specialize in the management of a specific type of property. On the other hand, other real estate companies may offer a wide variety of services for different types of properties.
Do you need property management services? Head on over to our website to see how we can help you!
The types of property management are listed below
- Residential Property Management
- Commercial Property Management
- Industrial Property Management
- Special Purpose Property Management
1. Residential Property Management
Residential property managers are hired to manage rental properties which include single-family homes, vacation rentals, multi-family homes, townhouses, condominiums, apartments etc.
2. Commercial Property Management
Commercial property management differs from residential property management in a number of ways.
Commercial properties include hotels, air BnBs, restaurants, shopping complexes, office complexes etc
Find more information on the differences between residential and commercial properties, here!
3. Industrial Property Management
Examples of properties that require industrial management include automotive plants, food packaging industries, warehouses, distribution facilities, manufacturing factories and logistic centres.
4. Special Purpose Property Management
Special Purpose Property management covers the management of properties that don’t necessarily fit into the other properties listed above.
A few examples of these properties include theatres, sports arenas, resorts, places of worship, schools buildings etc
Who Can Benefit from Property Managers?
There are numerous reasons why anyone who is a real estate investor can benefit from property management. If you’re wondering if you fit into this category, read on to find out!
Most homeowners who rent out their properties are usually involved in their own day-to-day business, which could be a 9-5 job or an entrepreneurial venture. Most often, they do not have the time to commit to overseeing their properties. These homeowners profit greatly by paying a fee to property managers to oversee the management of these properties while they attend to their own day-to-day activities.
Landlords who also have a booming real estate portfolio can also benefit from property managers. Due to the multiple properties owned by these landlords, it may prove impossible to keep up with the optimum management of all the properties. Additionally, not all landlords have the expertise required to manage properties and all the different services that are included in property management.
Why Do I Need a Property Manager?
Each investor is different and hence the answer to this question is not straightforward. It is dependent on a number of factors which must be carefully considered.
Let us look at some important ones!
1. Time
Time is an important- if not the most important factor to consider when you want to determine if you require the services of a property manager. With property management, there are no real ‘regular working hours’. This is because problems could arise at any time and from anywhere. Tenants could call at any time to complain about certain issues and you may be required to visit the property as well as attend to administrative duties at any time of the day, any day of the week.
Therefore, hiring a property management company is crucial for the well-being of your property if you’re on a rigid schedule for a significant number of days per week.
2. Money
Money is another factor that must be heavily considered in your decision process. Investing in real estate is only profitable if you can make a good return on your investment. Ensure you have created a budget and if the services of property management fit right within your budget then, it is a great decision to include product management services as a part of your investment.
3. Location
Another factor that you might consider is location. Ideally, you would most likely not require a property manager if you live a close distance to your property. It would be significantly easier to make a visit when necessary and complete tasks that keep the property in good care.
On the other hand, if you happen to reside miles or even continents away, then you definitely require the services of a professional that lives within close proximity of the property to ensure efficient care and smooth running.
Here are 5 common mistakes you can make while investing in real estate and how to overcome them!
Manage your Property Well
An effective property management structure is very important in real estate investment strategy. It is important in all the necessary processes required to acquire tenants, collect payments, settle lease agreements and many more. An effective marrying of all these processes will eventually come together to determine your return on investment and ultimately, the success of your investment.
Therefore, emphasizing the importance of making use of a professional who is well acquainted with all the knowledge required to manage your real estate investment.
The good news is that Luxury Redwood Properties offers top-notch property management services. Contact us to find out how we can help you.
Additionally, if you need help getting started on your investment journey, we have some properties ready to put you on the right path! Start investing with us now!
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this board and I to find It really useful & it helped me out a lot.
I am hoping to give something again and aid others such as you helped me.
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I think you’re right about how an efficient framework for managing properties is crucial to a real estate investment plan since it affects every step of the process of finding tenants, collecting rent, settling lease agreements, and much more. My husband and I own several commercial properties that are getting a little too hard to manage all on our own. Reading this just piqued my interest in looking into hiring a property management service we can rely on.
When you mentioned that location is another issue to take into account, I thought it was fascinating. Ideally, if you live near to your property, you probably wouldn’t need a property manager. It would be much simpler to perform the duties required to maintain the property and to pay a visit when needed. It seems like a smart idea to hire a property management business as I plan to buy an apartment complex this year. I’m going to look for a respectable local property management business that I can work with.
You won’t believe it, but my parents are seriously considering hiring a commercial property management service for their rental properties. With all the hassle of dealing with tenants and maintenance, they’re ready to hand over the reins to the pros. Plus, it’ll free up more time for them to kick back and enjoy retirement. Just typical Mom and Dad, always finding ways to make life easier! Don’t worry, I’ll relay to them your info on how to make sure you’ve established a budget, and if property management services fall comfortably inside it, then investing in product management services is a wise choice.