As big cities experience a spike in population growth, their real estate markets are becoming hotter. Following such trends, more investors are entering these markets. Some are exploring the market to flip houses while others are entering the rental property business.
Just as more people are entering the real estate market, more people are becoming realtors. For example, the Canadian Real Estate Association counts more than 120,000 members – which is almost twice as many since 2000. In the Greater Toronto Area, it’s estimated that there’s one real estate agent for every 96 people, up from one for every 198 people in 2002.
For someone entering the real estate business, it’s tempting to partner with any realtor, especially if their fees appear lower. However, this can be counterproductive. Your investment property is valuable, and only an experienced property management company will treat it like their own. Here are some important reasons to partner with a reputable property management company that’s been in the business for several years:
They Understand Market Trends
Accomplished property management companies with decades of experience are run by professionals who have an in-depth understanding of the real estate market. If you need help finding the right investment property, only an experienced team can help you locate the right neighbourhoods and properties that will generate a profitable investment. Moreover, they’ll be able to negotiate a fair price.
A less seasoned company may not have a nuanced understanding of the market to inspect or assess a property correctly. With them, you may end up with a property that needs more upgrades and repairs than anticipated, in a neighbourhood that’s about to lose value because of an upcoming long construction project.
They Have Connections
Over the years, s seasoned property management company develops valuable relationships, connections, and systems that can help them serve you better. For example, if you need to buy or sell a property, they can offer great market reach. Sometimes, such companies already have buyers and sellers waiting to do business with you.
They also have the means to match you with an excellent tenant who will meet all their obligations and treat your property like their own home. They may also know the best-skilled workers who can responsibly take care of maintenance, repairs, and seasonal upkeep at reasonable rates.
The Value Their Reputation
With competition so stiff, only property management companies that provide excellent customer service thrive for many years in the business. Such companies have excellent reviews on Google and are passionate about helping you meet your investment goals.
Newer companies can be unpredictable. They may juggle several clients every day to keep their business afloat. Such realtors are known to pressure their clients into buying an investment property or renting to a tenant who isn’t ideal. They’re also known to nickel and dime their clients. While they may offer rock bottom prices, their fees are usually not all-inclusive. Expect to pay more than you signed up for, and in more ways than one.
These are some important reasons you should partner with an experienced property management company. Your investment is valuable and deserves to be taken care of by an accomplished and knowledgeable company.