Making the Most of Your Investment: Why Investors Need a Real Estate Management Company

You've decided to start investing in real estate--congratulations! You're on your way to creating a lifelong passive income for yourself. That is, if you play your cards right. 

Investing in real estate isn't as simple as finding a property and renting it out or flipping it. There are nuances to this market that are key if you want to make the most out of your investment. 

So, how can you successfully navigate the world of real estate investing? 

Well, you can't do it on your own. Keep reading to learn why working with a real estate management company is essential for any property investor.

Unparallelled Knowledge of the Area

If you're thinking about investing in property in a city or town that you aren't familiar with, it's incredibly important to work with professionals. No matter how much you know -- or think you know -- about the area, it doesn't compare to the knowledge of local realtors and brokers.

When investing in properties, there are many local factors that need to be considered. 

What are the market trends for the area? What demographics are moving in? What is the state of the local economy?

These are just a few of the questions you'll need to know the answers to. And a professional real estate company will have those answers, and more.

By working with a team of professionals, you'll develop a deeper understanding of the area you want to invest in. You'll feel more confident and be able to make educated decisions when it comes to investing in properties.

They'll Find You the Best Deals

Once you've learned all you can about the area, it's time to find properties to invest in. But it's not as simple as going on Zillow or Trulia and doing a quick search. That's a surefire way to overspend and lose money on your investment.

A real estate management company can find you the best deals in town that will pay out the most in the long-run and have high appreciation value. You can rest assured that you won't miss out on any killer investment opportunities when you work with a real estate investment company.

Setting the Right Rental Rates

Setting a rental rate isn't as simple as looking at what other property owners are charging their tenants. Many factors go into determining rental rates such as new appliances, location, accessibility of good schools, and tenant demand.

A real estate management company will find the rental rate sweet spot that'll get you the most money without having periods of time without tenants.

Marketing Your Property

Once you invest in a property, you'll need to market it so potential tenants can see it. Without marketing, you may end up with only a few lackluster tenant applications, or none at all.

A real estate company will market and advertise your property online so it attracts not only more tenants, but better ones. 

Attracting the Best Tenants 

Finding tenants is time-consuming and can cost you big-time if you make a mistake. The last thing you want is to end up with tenants that don't pay their rent or end up breaking their lease. This leads to a loss of income that can be entirely avoided by delegating this task to a management company.

A property management company will find you the best tenants that have adequate income, credit scores, and high-quality applications. And if for some reason the tenants don't work out, the management company will find replacement tenants right away so won't have any loss of income.

Hire a Real Estate Management Company Today!

If you're serious about making the most out of your investments then don't try to tackle this on your own. By working with a real estate management company you can find the best investment opportunities without putting in the extra effort.

Interested in investing in real estate in Pinellas County, FL? Contact us today to learn how we can help you!

Real Estate Investing for Beginners: 5 Things You Need to Know

Investing in real estate is similar to starting a business--you're putting money into something with the hopes of making a profit down the line. But with that being said, many investors don't put the same time and effort into researching investment opportunities as they would when starting a new business.

And that's why many real estate investors won't maximize their profits. 

But if you're willing to do your research and put the work in before investing in real estate, you can make a ton of money without doing work moving forward.

Keep reading to learn all about real estate investing for beginners, so you can feel confident in your future home investments.

1. Study Price Trends

The key to successfully investing in real estate is finding properties that provide you with a ton of value. For example, if you find affordable properties and you see that the price trends in that neighborhood are skyrocketing, that would be a better investment than properties with a stagnant or declining value. 

If you are investing in property in an area that you aren't familiar with, it's important to work with real estate management services that can help you find the best investment properties. Spending a little extra money on working with a local business will pay off in the end because you'll end up with a highly-profitable property.

2. Examine Statistics and Business Trends

Your research doesn't stop at simply studying price trends. You need to take a closer look and ask why these trends are happening. Oftentimes, you can find statistics such as crime rates and the availability of good schools as an indicator of why prices are increasing or decreasing.

You should also research whether new businesses are opening up and what kind of businesses they are. For example, if there is a brand new shopping center and high-end restaurants replacing run-down businesses, that's a strong indicator the area is on the rise.

3. Take a Closer Look

There's only so much you can learn from doing your research online. You can analyze countless statistics and it might look perfect on paper, but you won't know until you check it out in person. Before looking at specific properties, just take the time to go around the area and see what you find.

Look at who is living in the area and talk to them about why they moved there, especially if they are young professionals. This can give you a more human perspective and will show you what is enticing about the area.

From there, start looking at different properties and consider their location in terms of accessibility to quality schools, grocery stores, restaurants, and nature (beaches, bodies of water, hiking trails). Find a property that offers something unique, something that will make prospective tenants want to live there over other properties.

4. Calculate Expenses and Profits

Once you've narrowed your search down, it's time to talk money. You'll need to determine what the cost of buying the home will be. Consider the downpayment cost and what type of mortgage you'll get, and then determine how much rent you'll charge. If you find that you'll need to charge a higher-than-average rent in order to make a profit, how will you sell that to prospective tenants?

You'll also need to consider additional costs such as property maintenance and property vacancies.

5. Minimize Your Involvement 

If you aren't careful, investing in real estate can become a full-time job instead of a passive income. As mentioned above, you'll have to deal with maintenance issues on a regular basis. Not only is this time-consuming, but it can get expensive. Not to mention if you're a non-local investor, it'll be downright impossible.

That's why it's important to minimize your involvement by hiring a property management company. They will take care of finding you properties to invest in, property maintenance, finding and screening tenants, property inspections, accounting, preventing tenant disputes, and minimizing vacancies.

With a property management company, you'll be able to invest in several properties without having to do any of the hands-on work.

Real Estate Investing for Beginners: We Make It Easy

Putting in the time and effort to research a good area and property to invest in may seem daunting. But once you've followed these steps on real estate investing for beginners, you'll be making big profits without much effort.

If you're looking to invest in real estate in Clearwater, FL, be sure to contact Professional Real Estate Management and Investment Services today. Not only can we help you find the perfect investment property, but we will take care of all your property management needs.

Tenant Summer AC Maintenance Information

The Dog Days of Summer are upon us and relief is months away.  This is not only creating stress for you and increasing your utility costs, but is stressing your air conditioning unit. 

Here are some common sense and easy things you can learn and do to help your system keep you as comfortable as possible in the Florida summer.

PLEASE UNDERSTAND:  Generally speaking any air conditioning system is designed to hold up to a 20 degree difference between the outside air and the inside air, while keeping the humidity around 55%.  When the temperature outside reaches 95, your air conditioner will run continuously and really begin driving up the electric use attempting to reach anything below 75 degrees.  With an outside temperature of 98 degrees, for highest efficiency you should set your thermostat no lower than 78 degrees. With extreme humidity that heat index could well be at or over 100 degrees. The difference between setting your thermostat at 72 degrees and 78 degrees can increase your cooling costs by as much as 47%.

TO HELP YOUR AIR CONDITIONER KEEP YOU COOL:

  1. Make certain you have clean filters. Change them often.  This will increase air flow through the house.
  2. Make certain no furniture is blocking air conditioning wall air return vents.
  3. Use your ceiling fans or get floor fans.
  4. Make certain all shades are closed on the “sunny sides” of the house.
  5. Reduce heat sources. Use less lighting, turn fans off when no one is in the room, keep heat producing appliances, such as televisions or lamps, away from the thermostat.  Their heat can make the thermostat think it needs to work harder to cool the room.  Limit cooking and baking to the coolest part of the day.

Do not turn your air conditioner off when you are leaving for work or going on vacation.  Leave it set at 80-82 degrees.  This keeps humidity from building up, reduces energy consumption and will not over tax the air conditioning system when you get home and turn the temperature down again. 

Armed with this information and a tall glass of ice tea, we wish you all a comfortable summer.

        The Dog Days of Summer are upon us and relief is months away.  This is not only creating stress for you and increasing your utility costs, but is stressing your air conditioning unit. 

Here are some common sense and easy things you can learn and do to help your system keep you as comfortable as possible in the Florida summer.

PLEASE UNDERSTAND:  Generally speaking any air conditioning system is designed to hold up to a 20 degree difference between the outside air and the inside air, while keeping the humidity around 55%.  When the temperature outside reaches 95, your air conditioner will run continuously and really begin driving up the electric use attempting to reach anything below 75 degrees.  With an outside temperature of 98 degrees, for highest efficiency you should set your thermostat no lower than 78 degrees. With extreme humidity that heat index could well be at or over 100 degrees. The difference between setting your thermostat at 72 degrees and 78 degrees can increase your cooling costs by as much as 47%.

TO HELP YOUR AIR CONDITIONER KEEP YOU COOL:

  1. Make certain you have clean filters. Change them often.  This will increase air flow through the house.
  2. Make certain no furniture is blocking air conditioning wall air return vents.
  3. Use your ceiling fans or get floor fans.
  4. Make certain all shades are closed on the “sunny sides” of the house.
  5. Reduce heat sources. Use less lighting, turn fans off when no one is in the room, keep heat producing appliances, such as televisions or lamps, away from the thermostat.  Their heat can make the thermostat think it needs to work harder to cool the room.  Limit cooking and baking to the coolest part of the day.

Do not turn your air conditioner off when you are leaving for work or going on vacation.  Leave it set at 80-82 degrees.  This keeps humidity from building up, reduces energy consumption and will not over tax the air conditioning system when you get home and turn the temperature down again. 

Armed with this information and a tall glass of ice tea, we wish you all a comfortable summer.