Updated October 31, 2022.
Real estate investors almost always end up asking themselves: 'What properties are the right ones for me if my ultimate goal as an epic investor is trying to see genuinely-profitable growth from my real estate investments?'
This question is at the heart of so many people's concerns about their work in the world of rental property and real estate. After all, your personal taste in what seems like a great place to live may—or may not—actually yield a competitive rate in the Pittsburgh rental market.
A Pittsburgh property management company can be a great guiding force as you work to create a balanced (and profitable) property portfolio! Here are just some of the ways our experts here at Rentwell® can be an asset to you as you start your journey into becoming a successful property owner.
Property Managers Know All About the Pittsburgh Rental Market
Some property management companies actually work with real estate agents for some part of their business. Still, even those who are purely working in property management are highly knowledgeable about what's desirable in the Pittsburgh area when it comes to rental property.
For instance, the popularity of condos or single-family homes among those you know may prompt you to start by investing in a particular place, but talking to an experienced property management company like Rentwell® may reveal that one property type is seeing a surge in demand. These professionals have their boots on the ground: they know what people are asking for when they look to rent because of their experience in the industry.
There are many other fine details that a property manager can guide you through, from the kinds of upgrades that will translate to a higher rental rate to the number of bedrooms that people seem to want. The rental market in the Pittsburgh area is subtly different everywhere else—even across neighborhoods.
Still, a local Pittsburgh property management company will have the best information because they manage so many rental units in your area.
It's More Than Finding Your Own Dream Home
A critical insight is to move beyond what you personally would want in a rental property to look at what renters in your area are looking for.
Is location really at the heart of everything? You can find out by seeing how much rents jump in the desirable neighborhoods and how long those properties remain on the market. Maybe school districts or connectivity to particular major highways are essential, causing low vacancy rates in properties with the right features. Let your choice in property picks be guided by the market and an expert property manager—not just what you'd personally love.
Another feature to be careful about is that homeowners are generally looking for different aspects of a property than renters, since they have a different level of commitment to the property. A Pittsburgh property management firm can help you distinguish what the deal breakers are for renters in your area—and what elements you can improve on to make a rental home more attractive to future residents.
Make Selections With Return on Investment in Mind
While making the property appealing to renters is key, you have to pinpoint which renters you are attempting to reach, as well as what will make them pay a competitive rate.
There are certain upgrades and features that a renter will find to be 'nice to have,' but they don't always translate to higher rent. There also may be a great property that will fetch a higher-than-average rental rate in the market, but which is so costly to you upfront that the ROI simply isn't there.
As you evaluate the options available to you for building your portfolio in Pittsburgh, remember to ruthlessly run the numbers based on how the market really behaves in your area of interest. Your property manager can help you factor in a variety of features:
How quickly will this property rent?
What rate will it fetch?
What kind of appreciation potential does it hold?
This combination should be the guiding force behind your portfolio-building strategy, since only focusing on one element (like getting as much income as you can through rent collection) may result in less overall revenue and profit.
A Property Management Company Helps You Grow Sustainably
As you can see, a Pittsburgh property management company typically already has the kind of essential information you need on hand. Their input when you've narrowed down your options could be the difference between a positive and negative ROI down the road.
Working with an excellent property manager brings so much value already in the form of handling the day-to-day care, maintenance, and repair of your properties, so this additional assistance as you scale up your investment portfolio is just the icing on the cake.
It can be a very productive relationship, since the property manager wants you to succeed and continue to grow, adding to the properties they can skillfully maintain for you.
However, not all property managers offer this level of dedication, property management services, or skill. You need an expert full-service property management team to help you take your portfolio to the next level: how do you find one?
A great way to get started is with your FREE download of our super-useful Guidebook for a First Time Investor. This guide covers the crucial details a first-time real estate property owners need to know to start purposefully looking for their first investment properties.