Buying property in another area or state can be an excellent opportunity to grow your real estate portfolio. There are, however, some things you need to consider before you make a move, like whether you should hire a property management company.
When real estate investors live in an area or state where the market is stagnant or has a smaller inventory of quality properties, looking into new markets can be an excellent way to grow a portfolio. However, while there are some fantastic benefits of owning property in another state, there are also some obstacles to watch out for. Today the best property management company Atlanta offers talks about five steps that help take the stress out of owning out-of-state investment properties while maximizing returns!
1. Invest In Property Where the Real Estate Market is Flourishing
The first item to check off the list is finding a new market. There are no shortages of cities and towns across the nation where investors can purchase real estate, but all markets are not equal. When looking for real estate property investments, owners want to find an area with current and future growth-places with people, jobs, good schools, and areas where people are thriving.
If you're not from the area but looking for your next good investment spot, Atlanta, Ga., is consistently one of the hottest real estate markets in the country. Eighteen Fortune 500 companies have headquarters in Georgia, Coca-Cola, UPS, Home Depot, and Delta Airlines. With a good jobs outlook comes an influx of people looking for homes to rent and an excellent market for long-distance investors!
2. Do Your Due Diligence Before Investing In An Out-Of-State Property
After finding a hot real estate market, the next step is to research where and what type of property to buy. If Atlanta is not in your backyard, it can help to find an Atlanta property management company to help in your research.
Some of the challenges out-of-state investors might face are:
- Out-of-state contacts. Without a local professional property management company, finding the right properties in an outside market is challenging. In addition, you'll need to find a contractor for any renovation projects the property requires and someone to do maintenance for before, during, and after a lease.
- Listing the home. Vacancies are ROI killers for property owners. Owners must get a property on the market as soon as possible and find the highest quality tenants to fill those homes.
- Understanding local laws and regulations. With varying rules across the U.S., you'll need to find someone in the area who knows the local laws and regulations.
Finding a proven leader in Atlanta property management is an excellent place to start the due diligence process for those outside the area.
3. Find the Perfect Investment Opportunity
There are a couple of significant benefits of looking at a rental property outside your area.
- Better cash flow. If you can find less expensive rental properties in another state or area and lease them at competitive rental rates, it could lead to more significant cash flow in your real estate investment portfolio.
- Greater ROI. Not only can you take advantage of higher rental rates in areas with substantial population and job growth, but there's also a great chance of appreciation in market value over time.
As you look for property in a new area, make sure to match your investment style with the location. For example, do you want to reach families in the suburbs or young people in the urban areas? Reach out to a property manager in the area to make sure your potential properties line up with your investment strategy.
4. Calculate the ROI to See if the Property Is a Money Maker
Once you find a property that matches your investment type, the next step is to figure out the ROI. An excellent return on investment is the ultimate goal of operating rental properties in any market. An Atlanta property manager can help you calculate the ROI and help you maximize your returns.
5. Find a Property Management Company in Atlanta, Ga.
What does a property manager do? It's a huge responsibility to start and run a real estate investment portfolio, and you'll need an efficient process and the right know-how to succeed. It might be challenging to figure out who to hire for your property management services, but it is imperative to your bottom line. Pick property managers who can handle every aspect of your properties in a long-distance market!
Let the Best Property Management Atlanta Offers Help You Get Started
Revolution Rental Management helps landlords find the perfect rental property, get it ready, line up qualified tenants and take care of the day-to-day details to get the best return on a property. We can help you succeed, regardless of the number of homes you own or where you call home! Reach out soon to learn more about our experienced full-service property management team!