Thanks to the internet, investing in real estate remotely is becoming an increasingly attractive proposition. No longer are investors confined to their local markets. Now the entire country (and even world) is open to them. In all likelihood, there is a market out there that is more attractive than what is available in your backyard, so why not take advantage of it? That being said, remote investing does come with some risk. The good news is that investors can mitigate most of that risk simply by choosing a quality investment property provider. Finding a great provider to work with will allow investors to maximize investment returns, and minimize risk and management headaches. Let’s look at some of the characteristics of a good property provider.
Services that should be provided to investors
A good investment property provider should offer a variety of services that help make your life as an investor easier. The two biggest worries for remote investors are property selection and property management. If an investor isn’t familiar with the local market, choosing a good property in a good area can potentially be challenging. Property management also can present a challenge for remote investors because they might not be familiar with local market rental trends, demand and so on. In addition, remote investors aren’t around to ensure the property is being taken care of. This means that remote investors need a local partner that can help fill in the missing knowledge gap, take care of all day to day things, and ensure that the rental property delivers consistent returns. Here are some services remote investors should expect from a quality company:
- Help selecting quality investment property
- Help financing the property
- Full property management suite, including:
- Tenant placement
- Repair management
- Tenant management (rent collection, notices, evictions, etc.)
- Accounting
What to look for in a investment property provider
Now that you know what type of services a good investment should provide to remote investors, let’s talk about some elements that define a quality provider.
- Property management
- Low vacancies
- Low tenant turnover
- Innovative marketing
- Low delinquencies
- Quick to deliver notices
- Good system of dealing with property repairs & maintenance
- Ample staff
- High level of tenant happiness
- Quality accounting & property reports
- Property selection
- High cash flow properties
- Focus on high quality areas
- Properties selected with future tenants in mind
- Quality, low maintenance properties
- Great customer service
- High number of clients coming back to buy more properties
- Scalability – they can support additional properties
Investing in real estate remotely can seem scary, but if you choose the right local partner, your investments should prosper. When you look for that partner, make sure that you do proper due diligence.
For more related topics, visite Real Estate Investment 101.