What Your Property Management Company Should Know About Multifamily Properties (and What They Should Ask)
When seeking help from a property management company in your search for a multifamily property to invest in, there will be many questions to ask. A trustworthy property management company should have the answers for you, and if not, be willing to help you find those answers.Working with a property management company when investing means asking a lot of questions. Here’s what your PMC should know about multifamily properties. Click To Tweet
What Does Your PMC Know About Multifamily Properties?
When a property management company is assisting you with your investment, they should offer their expertise and guidance on the future outlook of your property. Here are the questions you should be asking, and things that your PMC should know about potential multifamily properties:
- Income Potential
- Property Class
- Estimated Expenses
- Correct Property/Resale Value
1) What’s Your Income Potential?
Your property management company should be able to tell you the potential income you’ll be receiving through your property. The largest possible profit you can make is something that can be determined beforehand through your PMC.
2) Location, Location, Location
Is the multifamily property you’re looking at in a satisfactory location? There are location factors that can affect your income potential and expenses. Your PMC should know what to look for in the location of your multifamily property, and what to stray away from.
3) Property Class and its Affect
Your PMC should tell you if the multifamily property you’re looking at is a class A, B, or C property. It is important to understand that each property class represents a different level of risk and opportunity.
4) How to Estimate Expenses
Multifamily properties are going to come with a number of various outgoing expenses. While you may have a rough idea of what your expenses will be, a property management company will help you to list every possible expense you will take on from the property.
Pro Tip: Make a list of your goals and expectations for your multifamily property to bring to your PMC for review. This will help both you and your PMC keep track of what you’re looking for.
5) Correct Property and Resale Value
Your property management service should give you an accurate resale value on your property, which is important to know when investing for the future. Your multifamily property value is determined by the property class and surrounding factors which affects the potential income and expenses.
A multifamily property management company will expand the ROI of your multifamily asset by customizing a business plan for your investment. Ask your PMC any questions you may have along the way and they will be happy to answer them for you, guiding you on your journey toward your investment.
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