When needing your properties to be sold, finding the right real estate agent is very important. This will determine the success of the over-all transaction. You sure want to make the most out of the deal, right?
The research is in. Investing in real estate generates more wealth than any other investment option. Want to build your net worth without wasting valuable time or risking traumatic monetary losses?
If so, multi-family real estate may be the perfect investment option for you. Let’s get into the top benefits.
All successful business owners understand the undeniable importance of scalability. While it may seem like a safer bet to invest in a single property, this decision may not be very safe at all.
Think about it. Each individual property needs individual servicing and attention. You need to take care of all the nuances of homeownership like maintenance, landscaping, dealing with evicting tenants, etc.
When you scale up, the per-unit expenses go down. Less maintenance, fewer lawns to mow, and no driving around town to meet with different tenants.
2. Reduce Tenant Risk
A single-family home may be great- when you have tenants. But what happens when the house goes vacant, and the mortgage still needs to be paid?
If, on the other hand, you own a multi-family home, you build a diversification strategy naturally. Multiple tenants are forking over rent payments- this can help you float even if one of the units goes vacant.
3. Less Start-Up Effort
Let’s say you want to buy four houses to rent. Think about all those different closing costs, offer letters, and dealing with various agents and sellers. Think about all the work you need to do before you even own the property.
Compare that effort to that of owning a multi-family home. With this strategy, you visit one property, collaborate with one owner or seller, and engage in a single closing. That’s less time, money, and overall headaches for you!
4. Excellent Tax Breaks
As it turns out, the government rewards real instate investors with some attractive tax incentives.
For example, a major multi-house unit is going to come with serious deductions like depreciation. The depreciation can take place over two or more decades depending on how the property is classified.
To take advantage of these tax breaks, it’s best to work with a CPA who has ample experience in real estate. A CPA can help you save tens of thousands of dollars on your investment each year.
5. Faster Rent Increases
Multi-family properties can adjust with current market conditions, which means they change according to inflation and market demands.
Multifamily leases are typically a year. Commercial real estate, on the other hand, often have 5-year leases. This short-term lease means that you can raise the rent more quickly and consistently according to market conditions.
Translation? More money for you! And you’re also keeping your property competitive on the current market.
Final Thoughts On The Benefits of Multi-Family Real Estate
Multi-family real estate is one of the best options to diversify your assets and grow your wealth quickly!
Want to learn more about renting out property like a true professional? We have you covered. Check out this property management guide today.
There are more than 43 million Americans that rent their property. That’s the highest number in the past 50 years. No doubt about it: it’s a great time to be in property management.
Property management professionals are in a great position thanks to the recent “rental rush”. And this trend doesn’t seem to be going away any time soon. Whether you’re new to this career path or you’re a seasoned professional, we’ve got some tips that’ll help you do a great job.
Property Manager Responsibilities
Job responsibilities of property management professionals depend largely upon if you are a residential or commercial property manager. Residential property managers run a piece of property on behalf of its owner. These can include apartments, homes, condos, and townhouses.
A commercial property manager runs non-residential spaces. These include offices, shopping centers, and retail spaces.
Residential Property Management
Leases on residential properties tend to be shorter than commercial ones. This means that residential property managers do a lot of marketing. They have to show the property to potential renters, set the rates of the rental, and set the lease time and terms.
Residential property managers also deal with the financial aspect of the rentals. They collect the rent from residents and pay taxes, mortgages, and maintenance for the owner. They also deal with daily upkeep of the property, which can either be hands-on or outsourced.
Commercial Property Management
Marketing is also an important part of the commercial property manager’s job. Negotiating the lease and marketing the property can take longer than a residential property. But as industrial leases last longer and have built-in renewals, it’s a smaller role.
The financial aspects are like residential property management, too. But one major difference is that a commercial property manager is less responsible for daily upkeep. Most commercial tenants take care of maintenance and other upkeep responsibilities.
Tips for Property Management Professionals
It doesn’t matter if you’ve managed zero properties or one hundred—there’s always room to improve. So no matter what type of property you’re managing, check out these tips to become an amazing property management professional.
Know the Law
Whether you know the law or not doesn’t change the fact that you’re bound by it. It’s best to know as much about rental laws and real estate laws as possible. Most important are fair housing laws and landlord-tenant laws.
Some important areas to focus on are legal screening processes that don’t allow for discrimination and the use of unlicensed contractors for plumbing and electrical work. And make sure to know your lease! You can find our quick guide on some of the basics of property management law here.
Find Great Tenants
Finding a good tenant that’s here to stay is the best-case scenario. Tenant turnover costs about $1,750 a month. It’s important to properly screen your tenants before selecting them. Don’t rush into filling a vacancy.
Look out for a criminal background or eviction records. If possible, get a reference from the tenant’s previous landlord.
Finally, consider requiring an application fee for a background check. This is often able to deter unsavory individuals from applying in the first place.
Keep a Stellar Team
There are so many property management responsibilities, it would be nearly impossible to do them alone. Know your weaknesses and delegate these tasks out to your staff.
Try using a tier system. That way, you can focus your energy on dealing with the owner and delicate matters. Meanwhile, your staff can manage inquiries from current and future tenants.
Now You’re Ready to Be the World’s Best Property Manager
Now that you know your responsibilities and have a few tips on your side, you’re ready. If you’re just getting started among the ranks of property management professionals, check out our tips for newbies.
Or maybe you’ve managed your fair share of properties and you’re looking to branch out and invest in your own property. Contact eFind Agent to locate a real estate agent that’ll help you find your own perfect rental property.
Using the internet as a way to get our various needs has been growing very common nowadays. When it comes to real estate property sector, this is also not new. Through the website of efindagent.com you will be able to find the agent that will be most suitable based on your needs.