The process of buying an investment home can be daunting, but making the right choice in your purchase is the first step in building an effective rental portfolio. A successful investment property brings in substantial passive income, while a poor investment choice causes stress and financial troubles. The city of Orlando provides ample opportunity for investment homes that may be overwhelming, especially for beginner investors. Orlando's best property management companies supply solid advice for homeowners to start and build their investment portfolios. The following list details how an expert property manager helps homeowners grow their portfolio and bring in substantial income.
1. Help Selecting which Properties Will Perform Nicely and Where
As realtors often claim, a home's value relies heavily on location, location, location. This claim applies to investment properties as well. Whether in Orlando or near Lake Nona, the area a home is located in affects what type of renters it attracts. A beach-front condo in Daytona will have different needs than a suburban home outside of Orlando. The best property management companies in Orlando help you decide which type of tenant you are looking for with your rental property.
There are several types of investment properties, including:
- Single-family homes
- Multi-family homes such as duplexes
- Apartment buildings
- Condos
Your expert property manager will guide you in choosing a property that fits your investment needs. Each type of property has its benefits and drawbacks. A successful investment portfolio has different kinds of investment properties in order to achieve balance. Your property management company can help you determine how to diversity your portfolio depending on your financial status and investment goals.
2. Help Find Home Features Tenants are Looking for
While the home’s location is a significant factor, the home's details and features set it apart from the competition and persuade prospective tenants to sign a lease. An expert property manager keeps their finger on the 'pulse' of what tenants in Orlando and surrounding areas are looking for. Your property management company can help you secure a home that is appealing to tenants. For example, hard flooring has easy upkeep, and most tenants prefer it in the house's living area to avoid carpet damage and increased wear. Yards with easy upkeep and entertaining features such as shaded patios and raised flower beds also appeal to tenants. The features tenants are looking for in a home also vary based on the home area. Downtown Orlando dwellers favor attractions and shops within walking distance while tenants in the outlying areas may look for larger sized homes and lots. Using the best property management companies in Orlando can help you keep an eye on the market and find homes that boast features like these. Investment homes that contain the ideal features attract tenants faster to minimize vacancy time and bring income in faster to further invest in your portfolio.
3. Help Maximize Return on Investment
The best property management companies in Orlando help you locate a home that is going to get the most "bang for your buck". The ideal investment property is well made and satisfies many tenants without too much upkeep. An expert property manager can decipher which properties are solid investments and which homes could become a liability. A homeowner that endures fewer maintenance costs can invest those savings into their rental portfolio. While purchasing an investment property, you should always keep the potential return on investment in mind. A property that meets the criteria listed above to attract tenants (the home is located in the best part of town and has features tenants are looking for) can generate a better return on investment than homes that do not meet the criteria.
Other factors that affect a property's return on investment are:
- When the property was built, as older properties typically have more maintenance costs
- The rental price of the property
- The age of appliances in the property; older appliances generate more maintenance costs or replacement
- The property taxes of the area the home is located in
Purchasing an investment property with as high of a return on investment as possible is vital in growing your investment portfolio.
4. Help Monitoring the Real Estate Market
The real estate market is known for its volatility. Having the best property management companies in Orlando working for you is key to growing your investment portfolio. Property management companies keep on the "pulse" of real estate and are on the lookout for homeowners to score the best deals on properties for sale. Extra sets of eyes to monitor the real estate market in the area of Florida you are looking to purchase in is a invaluable tool. A good property management company is consistently on the lookout for homes that are foreclosed on or priced very low to sell and act as a liaison for the homeowners to secure a new property at a great price. Finding these deals on homes is a great way to add to your investment portfolio.
An effective property management company is a crucial contributor to building your best investment portfolio. Finding income-generating homes can be a confusing process, but an effective property management company takes most of the guesswork out of building your portfolio. Your property management company also helps generate the most income from your Orlando investment home. Download "The Guide to Finding the Best Central Florida Property Management Company" today to find your best partner in real estate investment!