Does your property manager do a good job of staying up to date on market trends?
We hope so. Things change quickly in the real estate market and the rental market, and you don’t want to be blindsided by a trend or a law or a new best practice that you didn’t see coming.
Think about what you expect from your property manager. Of course, you want them to lease, manage, and maintain your home with expert efficiency. You should expect a bit more than that, however. You partner with a management company because you don’t have time to stay up to date on everything that could potentially impact your investment property.
Count on your management team to do that.
You cannot be completely passive, however. It’s important to keep up if you want to successfully rent out properties and grow your investment portfolio.
Here’s how staying up-to-date on market trends will benefit property investors like you.
Making Better Investment Decisions
Understanding the market trends will help you make smarter decisions about your business.
Yes, it is a business. When you invest in even one piece of real estate, you’re running a business. By staying informed, you can identify opportunities faster and with more clarity. You’ll also see potential threats and setbacks coming before they trap you into shock and inaction.
When you have access to good data (or a property manager who has good data), you can make decisions based on the information that’s been gathered. It’s going to cut down on expensive mistakes and increase the profitability of your portfolio.
Remaining Competitive in the Rental Market
When all the rental properties in your neighborhood suddenly have hard surface flooring and you’re sticking with the same old carpet, you’re at an extreme disadvantage.
You’ll need to keep up with resident demands and priorities if you want to rent out a competitive property. You cannot charge higher rents and attract well-qualified residents if you’re not providing a property that they want to rent.
When you do stay up-to-date with the latest trends around what good residents are looking for, you will easily stay several steps ahead of your competitors. Your rental property will stand out and when it’s time for residents to look for their next rental home, yours will be the obvious choice.
Earning More and Spending Less
Losing money because of an expensive legal mistake hurts. Missing out on more income because you didn’t raise the rent enough at renewal time is also bad for your cash flow and your return on investment (ROI).
Staying ahead of market trends ensures that you’re charging what you should, making the updates that you need, and following all the rules, laws, and requirements. You need to know how inflation is impacting maintenance prices so you can adjust your budget. You need to balance what you’re spending with what you’re earning. Understanding the market and its shifts will help you earn more on your property and spend less on vacancy, turnover, and emergency repairs.
Reducing Risk and Liability
When you are up-to-date on market trends, you can more easily reduce the risk associated with your investment property. You can identify potential problems and blind spots early on, and you can develop contingency plans.
If you’re feeling a bit behind the curveball, we can help. Contact our team at Portola Property Management, and we’ll talk about how we keep our owners up to date on all the relevant changes and trends in Santa Cruz property management.