Condo Management – Learn How It Improves Your Rental Property ROI
Are you searching for condo management in Portland Oregon? If so, you’ve come to the right place!
Condo management is the key to success with getting more ROI from your rental property because professional management saves you the hassle of managing your property yourself so you can focus on doing other things.
About Condo Management In Portland
Condo management in Portland company will offer you a full suite of property management services including:
- Condo marketing – Your condo will be professionally marketed online, attracting the most qualified tenants who will enjoy living in your property.
- Tenant selection – After screening tenants, your condo management company will select the most qualified tenants to live in your property.
- Rent collection – With a condo management company, you can have peace of mind in knowing that rent will be collected on time each month so all you have to do is sit back and enjoy the passive income.
- Maintenance – When maintenance is needed either inside or outside the condo, your condo management team will professionally manage to take care of all your property’s maintenance needs.
- Customer service – Last of all, but most important, when your tenants have questions or need assistance, you can have peace of mind in knowing that they are speaking with dedicated customer service professionals.
What is Return on Investment (ROI) and How is it Calculated?
As you might have guessed, return on investment is a measurement of performance used to measure the profitability of an investment. ROI is used to compare the return on your investment relative to your investment’s cost. To calculate your condo’s ROI, divide the profit your condo generates by the cost associated with it. So, for example, if your condo generates $24,000 from rent payments per year and the overall cost of running the property is $20,000 per year, then your profit is $4,000. If you divide $4,000 by $20,000, then you get your ROI which is 20%. In general, anything over 15% is considered a good return on investment for a property.
Is Hiring a Condo Management Company Worth the Investment?
Property managers offer significant value due to their expert ability to rent and maintain your condo. They also will have a network of other property managers, realtors, and sub-contractors to assist with finding tenants and making sure service requests are handled quickly and professionally. Let’s explore the specific benefits of working with a property manager in more detail.
It goes without saying that if your condo sits empty, it doesn’t make you money. A reputable condo management company can optimize your property’s online presence by creating well-written and well-placed listings that highlight the features of your property that set it apart. This kind of intentional marketing can attract prospective residents more effectively than you can on your own. They’ll know exactly where to advertise, how to boost the searchability of your property, and where your ideal clients will be looking for properties. If there are particularly effective internet listing services for your area, they’ll have that information readily available. These sites integrate listings across multiple sites, such as Hot Pads or Trulia, to create a single, searchable database of rental properties. Or, if renters in your area prefer to search individual rental websites, they’ll know that they should be listing your condo there, instead. Depending on the size of the company, they may also have a network of other real estate professionals who can work with prospective tenants. With more interest comes more applicants and, eventually, renters.
They Know the Value of Your Condo
One of the reasons condo owners might lose money on their investment is because they undervalue their property when it comes time to put it on the market. Reliable condo management companies specialize in doing the market research necessary to set a fair, but profit-earning rental price. On the flip side, a condo management company won’t overprice your condo, which can create long vacancy patterns.
Careful Tenant Screening
After your condo management company’s expert marketing creates a pool of applications for your condo, the “right” residents must get signed on. Many property owners find that working with a condo management company takes the guesswork out of the process. Condo managers know what red flags to look for and how to select responsible residents. By completing credit screenings and background checks on your applicants, they’ll be able to determine which of your prospective residents will be the best choice. Responsible residents will pay their rent on time, will take care of your property, and ultimately, keep your rental profitable.
Residents Will Stick Around
Part of a condo manager’s job is to build a good rapport with residents. Let’s face it, very few property owners have the time to do this. But, a large portion of your condo manager’s job is to keep your residents happy. This will keep your condo rented and make money. So, they’ll be sure to keep channels of communication open. If your residents feel well taken care of, they’re more likely to stick around. According to Buildium’s 2021 Rental Owner’s Report, 31% of rental owners reported that the pandemic hurt their residents’ ability to pay rent, with 13% of owners having worked out a payment plan with at least one resident. Unsurprisingly, the number of rental owners who wanted an expert’s help jumped from 78% in 2019 to 90% in 2020. This is because property managers can build rapport with residents and work closely with them to meet their needs. Tenant retention keeps your property occupied and making money, increasing your overall ROI.
Working With Condominium Boards
Another benefit of working with a condo manager is that they can work directly with your condominium building’s board. Condominium boards set the building’s bylaws, hire maintenance staff, and maintain common areas. A condominium management company can act as your intermediary to make sure that your residents are following all of the building’s policies. They can also keep your residents happy by working with the condominium board to make sure all maintenance requests are handled quickly.
What Should You Look for in a Condo Management Company?
While many property managers can add significant value, you must hire the right one. Here are a few things to look for in your future condo management company.
It goes without saying but, we’re going to say it anyway: experience matters. An experienced company will be better at staying up-to-date on industry regulations and on the newest methods of marketing a property. When deciding on what management company you want to hire, look for a well-established company with years of experience. You may also find that more experienced companies are more likely to be associated with organizations such as the National Association of Residential Property Managers (NARPM) or the National Association of Realtors. These professional associations offer their members continuing education and coaching that benefits you, the property owner.
Contact Rent Portland Homes – Professionals
At Rent Portland Homes – Professionals, we specialize in condo management including the management of single-family and other multifamily properties.
To learn more about the property management services that we can offer you, contact us today by calling (503) 447-7735 or clicking here.