One of the first questions first-time investors ask is how much money they can make. The answer depends on a number of factors, including one's goals for investing.
A report published in Yahoo Finance found the yearly return for one residential property is about 10.6%. The more properties in your portfolio, the more money you stand to make.
Not just any property will generate income; you must invest wisely in the right properties in the right locations. This part requires research and expert advice. One of the wisest decisions you can make is to create a real estate asset management strategy from the beginning.
Discover industry-standard tips for asset portfolio management and more.
Get Property Investment Tips from the Pros
The first step of any aspiring investor is to seek expert advice. Start with an initial consultation with a property management company. Companies like At Home Rental offer a suite of services tailored to real estate investors, especially clients who want to break into investment properties, also known as rental properties.
Investment properties include:
- Commercial buildings
- Single-family homes
- Condos and townhomes
- Short-term vacation rentals
Depending on the building's zoning, apartment buildings may be classified as a commercial or residential investment property. This is another reason to seek professional advice before purchasing an investment property. A property management company can help you choose an investment property with the highest profit potential, as well as provide the necessary property management services to stay in compliance.
Invest In Property Management Strategies
Property management services are also necessary for attracting and retaining responsible tenants. Successful investment property portfolios have low turnover rates and high profit margins. These portfolios generate more income; they're also more attractive to potential real estate investors who may want to buy these properties in the future.
Another valuable property management service is tenant screening. This service ensures only the best tenant candidates are considered and screened for properties.
This process includes:
- Extensive background checks
- Income and employment verification
- Financial documents (bank statements, pay stubs, etc.)
- Past rental references
- Rent payment history
- Criminal background checks
- Eviction history
Property managers only use verified background check methods, including national databases. They don't rely on online services that produce false information.
Real Estate Strategies for Marketing
Marketing is another important service for your real estate asset management strategy. The best marketing strategies are designed to attract and convert ideal tenants; you can even consider marketing as part of the tenant screening process. The marketing starts with a clear vision of your ideal tenant.
Ideal tenant profiles include a number of demographics:
- Age and occupation
- Annual income bracket
- Long-term goals
- The number of people in the household
- Past rental history and behavior
You also need high-quality media to attract this ideal tenant, including professional real estate photos and video tours. Property listings must include amenities, policies, and monthly rental prices.
Optimize Your Real Estate Asset Management Strategy
Don't take this journey alone. Contact a property management company and get the expert advice and experience you need to scale a portfolio and generate income quickly. These smart decisions are the start of a confident real estate asset management plan.
The At Home Rental team is skilled in everything from brokerage to property marketing. Our locally-owned property management experts will oversee your entire project timetable, from sourcing to budgeting.
Book an appointment today to learn more about the income potential of your property.
