3 Reasons to Use Your Property Management Company to Buy Rental Properties
When it comes to finding and purchasing rental properties, you want to ensure you have a knowledgeable, experienced partner to help you in your search.
Buying investment properties is a whole other ball game compared to simply purchasing a personal residence.
You have to think about the make-ready work, rent rates, cash flow, appreciation, crime rates, school districts, property taxes, etc, and how it will all fit in with your goals and strategy.
You also have to think about management. Are you going to self-manage or have a third-party handle that for you?
If you’re going to hire a Property Manager anyway, why wouldn’t you take advantage of using their brokerage services as well?
It makes sense on so many levels, and we’re going to discuss a few reasons why:
They Understand the Rental Market
When you employ a real estate agent, you obviously expect them to understand the sales market, Indiana real estate laws, etc. While that’s all well and good, you shouldn’t settle for someone who’s just going to help you close a deal.
When you work with an Agent who is part of a management company, you can expect them to have knowledge and resources about the things that really matter to your bottom line.
A good Property Management company (PMC) will have a team of people who know the rental market, and know it well.
They will be able to advise you on rent rates, areas that typically see better appreciation vs. cash flow, areas that don’t rent well, property taxes, and many other valuable insights that your average Agent may not be able to provide.
Information that is vital to making good investment decisions.
2. Smooth Transition After Closing
Real estate transactions can be tedious.
There’s dealing with inspections, contracts to sign, negotiations, more forms to sign, and so on and so forth. The last thing you want to do once you finally close on a property is have to go through more rigmarole getting set up with your Property Management company.
The beauty of using a PMC to purchase the property is that they are going through the entire purchase process with you.
This means that by the time the transaction is officially closed, they will have detailed information about the home that will help them manage it better, as well as spare you from having to provide it all.
They will have a game-plan in place and be ready to jump into action to do what needs to be done to get your property marketed and rented as quickly as possible.
This is a valuable asset because as you probably know, vacancy is a cash flow killer.
3. They Have A Vested Interest in Your Long Term Success
Last, but certainly not least, a Property Management company has a lot more skin in the game when it comes to your success.
Real estate agents get paid to help people purchase properties. This process has a very finite beginning and end point. They do their job, and move on.
Property Management companies on the other hand, get paid to, well, manage properties. So the longer they manage a property, the longer they make money off of it.
See what I’m getting at here?
A PMC has a vested interest in helping you find a rental that will perform well for years to come, so that all parties may reap the benefits.
In conclusion you can choose to hire any Agent to help you purchase rental properties.
But at the end of the day, why wouldn’t you choose a trusted a partner?
Someone who understands the rental market.
Someone who can seamlessly transition your property into the next phase after closing.
Someone who has a vested interest in your long-term success.
A Property Management company can provide that for you.
If you’d like to speak with us further about helping you purchase and manage properties in the Central Indiana market, please click the button below!