Rental management. If you wish to get into real estate investment, then it is something that you are going to have to learn.
In 2019, nearly 280,000 apartment buildings were built across the United States. If you want to get involved in the rental market, then you need to buy one of those buildings and have some management for it.
What do you need to know about real estate investments? What help can you get with property management?
This is your guide.
Know Your Market
The first thing that you need to know is the market that you are buying in. That should give you an idea of how much your building is worth and more importantly, how much rent you should be charging.
Let's use Salt Lake City as an example. In 2021, the average rent for a two-bedroom apartment in that city was $2,157 per month. That increased by 43% from the year prior, so you need to stay on top of rental market increases.
If you are in another part of the state, sometimes you can use the state rent average as a guideline. Last year, that average was $1,710 per month for a two-bedroom apartment.
Have an idea of what you are worth and what you can expect to get in return. You should feel more confident at this stage that you can fill those apartments, considering that Salt Lake City had a 98% occupancy rate in 2021.
Know the Local Laws
The next thing that you need to be aware of is what your local laws are. You may have general knowledge of what building permit and zoning laws are in Utah, but you have to take into account what laws could be different in certain areas.
Say you have an apartment building in Salt Lake City. Because it is the largest city in Utah, it may have different local laws when it comes to apartment buildings and rent management than other parts of Utah.
Make sure that you are aware of this before you go into business and if not, hire a professional to make you aware of these laws.
Hire a Property Manager
Finally, if you are not sure if you can be compliant with all of the local laws and keep up with the rental market, perhaps you should look into hiring a property manager. They can be responsible for all of the daily tasks that your apartment building needs along with keeping up with regular building maintenance.
This can also give you the flexibility of living further away from your investment building instead of nearby. So, if you want to tap into the Utah real estate market, you can do so while still living in Los Angeles.
Look Into Rental Management
These are some things that you need to note about rental management. If you feel overwhelmed about owning rental property, a property management company could be what is best suited for you.
Do you want to know more about it? Message us today with your questions.
