There are two specific reasons to work with a professional San Jose property manager before you invest in a property in our market:
You’ll get access to a lot of market data and rental insights.
You’ll avoid making common and expensive mistakes.
Even experienced investors need guidance and help, especially when it comes to navigating the real estate market we’ve been experiencing over the last few years.
Most owners who plan to rent out the property they’ve acquired will reach out to property managers once they’re ready to market and lease the home, or when a tenant is finally in place.
Smart investors know that property managers are invaluable before they close the deal.
Access to San Jose Rental Market Information
Your property manager will ensure you’re more informed than you would be buying on your own or with the help of an agent or broker, but not a management partner. You can expect your San Jose property manager to help by:
Conducting thorough market research. A professional property manager can provide investors with valuable insights into the rental market. We will conduct a thorough market analysis to determine the demand for rental properties, the average rent in the area, and the overall rental market trends. This information can help you make informed decisions about purchasing properties that will generate good returns. We’ll help you weigh the risk and the potential rewards.
Evaluating property condition. A property manager can help evaluate the condition of a property before you make a buying decision. We’ll talk to you about the amount of work that needs to be done on the property, the estimated cost of those repairs and renovations, and any other significant issues that may affect the property's profitability. With this information, investors can make informed decisions about purchasing the property.
Evaluating rental potential. Professional property managers use our expertise to evaluate the rental potential of a property. We can assess the property's location, size, layout, and amenities to determine the type of tenants who will be interested in renting the property. We can also advise on any upgrades or modifications that may be necessary to maximize rental potential.
A professional property manager can also provide advice on the legal requirements for owning and leasing a property. In California, some investments will be subject to rent control and just cause eviction laws. You’ll need to know if the property you’re considering is included or exempt.
Remember, too, that after you’ve acquired the property, a professional property manager can take on the day-to-day management duties. This includes advertising the property, screening tenants, collecting rent, handling maintenance and repairs, and managing any disputes that may arise. By hiring a property manager, investors can focus on acquiring new properties and building their portfolios while leaving the management duties to the professionals.
Hiring a manager who already knows your property (because they helped you buy it), will minimize the learning curve.
Avoiding Mistakes with San Jose Investment Properties
Partnering with a San Jose property manager can also help you avoid mistakes. Everyone is going to have a mishap or run into some pitfalls from time to time. But, when we’re talking about investment properties that are worth a lot of money, you want to minimize the errors as much as possible.
Your property manager will help with that. We’ve seen all the mistakes. We know where the greatest risks can be found.
You need to know the fundamentals and how to determine fair market value and accurate rental projections. You need to know the cost of ownership and which neighborhoods are most attractive.
In San Jose, those hyper-local neighborhoods can have dramatically different rental rates. You can be on one street and it can be a fabulous investment. Yet two blocks over, it can be terrible. The market can fluctuate a lot by geography.
Here are some of the common mistakes we see, and how your San Jose property manager can help you avoid them before you buy a property.
Treating real estate like stock. You cannot get in and get out of real estate investing on a whim. It takes time. Real estate investments are not liquid.
Trying to get rich quick. This is a big fantasy, and in actuality, earning money on real estate investments takes skill, time, and dedication. You will find yourself earning incremental advances on your investment, which is the best way to build long term wealth.
Not having an investment plan. Your property manager cannot help you unless you understand what you want. You need to know how many properties you want to buy and what sorts of properties those will be. You need a written plan and need to know when you will get in and when you will get out.
Not understanding renovation costs. This is typically a mistake that happens to new investors. Let’s say for example you are a newer investor and you get halfway through the deal and all of a sudden, you have blown your budget. As a new investor, you are most likely to panic and then look for ways to cut costs. When you start doing that, it can be a vicious spiral, and it’s not the way to treat this business. This goes back to having a good team around you. You want to work with that team to nail down the renovation costs right up front. You cannot afford to make a mistake and disregard it. Your property manager will prepare you for what you’ll likely have to spend in order to get the property rent-ready and what you’ll have to spend for ongoing maintenance.
Think of the people you most admire. Everyone who succeeds in their chosen field or passion has a coach. They have support. You want to surround yourself with a strong team. If you want to have a partner, maybe a get a partner who complements your weaknesses. Have a good CPA or financial planner. Always have a good broker or agent as well. Who you surround yourself with matters a great deal. Do not do this in a bubble all on your own.
Your property manager is the most important part of that support team.
We can help you with your next investment. Please contact us at Cornerstone Property Management.
