Investors too often approach the decision to buy a multifamily property without a support system, but the smart money is made when they team up with property managers well before closing. A property manager who knows multifamily property management is an irreplaceable asset for a buyer for many reasons, but there are three primary advantages these real estate professionals bring to the table when shopping for an apartment building to enhance your investment portfolio:
- Pre-Purchase Property Assessment. Property managers know what amenities and services potential renters want, and they bring seasoned industry knowledge to your property search. A professional property manager can provide a feasibility study, property analysis and market analysis on any property you’re considering. This advance work can keep your business plan in place without getting you in over your head in repairs and improvements, or invested in an undesirable market.
- Establishing and Implementing a Management Plan. Just like any important business venture deserves a detailed and clearly defined business plan, it’s important to have a management plan in place before you’ve signed papers and are suddenly “the management.” Current residents will appreciate open lines of communication, and a management plan will address how to attract renters quickly to fill any vacant units. A delay at this stage – such as searching for a skilled property management company – could be costly.
- Built-in Human Resources. Managing a property involves a good deal of grounds-keeping, repairs and maintenance. Property management companies have skilled and licensed workers capable of immediately addressing a property’s needs and quickly responding to tenants’ requests for service. Again, deferred maintenance or service delays just after a purchase could cause irreparable damage to your reputation with the people who pay the bills, your tenants.
You wouldn’t buy large amounts of stock or invest in a startup company without consulting a financial advisor, and the same rule goes for buying commercial real estate. Find a property manager you can trust to guide you through the process and help with a seamless transition after the sale. Contact Class A Management at 817-295-5959 or e-mail info@classamgmt.com for more information.