In the world of real estate investment, there is a crucial element that makes everything work. Without it, the whole concept falls apart: property management.
As passive real estate investors especially, we rely on property managers to allow us to be passive in the first place. Without their diligent management, we would have to involve ourselves in much of the day-to-day operations of our investments: defeating the purpose of “passive” real estate investment!If there’s anything we can’t take for granted, it’s the efforts of property managers. And more than simply not taking them for granted, there are several things that investors and owners must understand about managers if they are to have the most successful investment experience possible.
These are four things to know about property managers before you start investing in real estate.
4 Things Investors Must Know About Property Management
Managers are your biggest allies.
If there’s one thing to know, it’s this: your property managers should be your biggest allies in real estate investment. They are the ones you should trust the most in this business. They are the ones handling your residents, your property, your rent checks, and everything that preserves and protects your investment future. They help you know what’s going on with your investment property, they take care of problems, and they can make or break an investment.
Good managers can bring success. Bad managers can ruin great investment opportunities. That’s why they’re worth really investing in and caring about.
Managers know their markets better than anyone.
Managing investment properties isn’t just about your property. It’s not just about several properties. It’s about being an expert in real estate in any given market, too. Property managers know their markets. They’re aware of trends, they know how to market, they keep up with the demands and needs around them. When you’re looking for a property management team, you’re not just looking for good people skills or someone great at organizing things. You’re looking for someone who knows real estate. You’re looking for marketing expertise.
Effective management is a highly skilled occupation. It's not something that just anyone can do.
Managers are your property’s first line of defense.
Investment properties are assets. As owners, it’s our responsibility to protect those assets. Because we’re passive investors and not often in the same area as our properties, it can be tough to keep an eye on things—and that’s where managers come in.
Managers are there to ensure that your properties retain their value throughout the years. Through regular inspection, they help detect the first signs of trouble—whether caused by a careless or destructive resident or due to the natural breakdown over time.
Good property managers give passive investors the greatest security they can have. They give you the peace of mind that comes from knowing that you don’t have to worry about your properties. You can rest easy knowing that things are handled. They’re experts who know exactly what to do and how to handle any given situation.
Managers are your reputation.
Lastly, managers are your reputation. Because you’re the owner, and a passive one at that, the customer (the resident) never really interacts with you. It is all on the manager. So as a real estate investor who likely has ambitions of growing their portfolio, it’s your property manager that impacts your reputation. The manager is the one that residents will complain about or praise, and the manager is the one in charge of the upkeep of the property, which residents will complain about or praise.
The recommendation of your properties, their sustained income, and overall reputation hinges on the performance of your property managers.
So aren’t they worth investing in?
Turnkey Real Estate and Property Management
If you’re a passive real estate investor in turnkey real estate, you have a distinct advantage. If you have a turnkey provider you trust, it usually comes with a management team or company that they trust. It’s one of the many advantages of working with a turnkey real estate provider: the security and convenience of experienced and trusted individuals.
If you want premier property management and a hassle-free real estate investing experience, look no further than Memphis Invest.