How To Find A Great Property Management Company To Work With

Published online: Feb 14, 2022 / Property Owners

Investing in real estate is one of the smartest investments you can make for a lot of reasons. The stock market and other investments can be “simpler” because there can be less upkeep and maintenance. While real estate can be one of the best and most profitable investments, it doesn’t come without its own difficulties and challenges.

Even with these extra challenges to work through, real estate investments are considered one of the most profitable and worthwhile investments.

Because of these extra difficulties that you have to work through, it is often wise to look into a property management company to help you stay on top of rent, maintenance, and other day-to-day issues.

Especially in Southeast Idaho, property is an excellent investment, and at Rooftop Real Estate Management, we want to make your investment as headache-free and straightforward as possible.

Why Is Real Estate a Good Investment?

There are tons of different ways to invest your money. Some are smarter than others, but none come without complications and risks. Investing in real estate has many advantages and reasons why it is a great investment.

Consistent Cash Flow

Cash flow is composed of the money that you make from your real estate investment every month. Generally, this is made up from the difference between the cash you consistently make from charging rent and the money you spend paying your mortgage.

The cash flow in real estate is more consistent and regular than that of other investments because of the ability to charge rent on a monthly basis. You create a set amount and have passive income that you know will be there every month.

Because of the cash flow from rent, your real estate investment’s profit and net income are gradually more significant as you pay off your mortgage.

Along with the perks of consistent cash flow, investing in real estate can present some significant tax advantages for you. There are ways to receive tax deductions and tax benefits because of your investment property.

Real Estate Appreciates Exponentially

Unlike other types of investments, real estate can be a “safer” or more “stable” option because of the appreciation rate of land and real estate. Real estate is unique because there is a set amount of land in the world, which means there is a specific amount of real estate that can be available.

This generally means that the value of your investment will appreciate (or increase) over time. Like anything, there are risks involved. But, the risks are smaller with real estate than with other investment forms.

Along with that, real estate in Southeast Idaho has been drastically increasing in value in the last couple of years because of the increase in population and demand.

As the demand for property, real estate, and land increases, so does the cost of it. Meaning, over time, as the demand increases, so does the worth of your investment. This appreciation in the value of your investment also means that as time goes on and the demand for properties increases, the rent price naturally goes up.

When the time comes for you to sell your real estate investment, odds are you will sell for a real profit. Hopefully, before you sell, though, you have been able to make back (or at least contribute to your mortgage) because of rent and increasing rent prices each year. Together, these factors make real estate one of the most beneficial investments.

Build Equity

We often hear people talking about how important it is to build equity. But what does that mean? It means that as you pay your mortgage, you own a more significant percentage of your home.

For example, if you put $20,000 down on your $200,000 home, you own 10%. As you make mortgage payments eventually, you can work your way to owning 25%, 50%, and eventually 100% of your home. Owning a greater percentage of your home equates to building equity.

As you build equity in your home, it also increases your net worth. As you have a greater percentage of your home in your name, you are worth more financially because you own more of an asset.

There are many benefits to building equity, including eventually being able to sell your home for a profit. Rather than selling it and using the majority to pay back your loan, including interest, you get to keep a higher majority of the profit from the sale, making your investment worthwhile.

Diversify Your Portfolio

Your investment portfolio is composed of all of your different forms of investments. Your portfolio can include stocks, bonds, IRAs, real estate, cryptocurrency, NFT’s, and many more.

In general, investors like to “diversify” their portfolio; meaning, they try to invest in numerous different things to reduce the amount of risk and maximize their return on investment (ROI).

There are risks to any form of investment, so investing in many things allows you to reduce the risk. The stock market can crash, things can happen to your real estate, your crypto wallet can get hacked, and many others. Investing in many forms allows you to not “put all your eggs in one basket.”

Why You Need A Property Manager

Now that you have decided that real estate is the best investment for you, what are the next steps to finding a good property manager? There are a lot of steps to finding the right property management company for you, along with a lot of amazing benefits of having a property management team.

Avoid Monotonous Tasks

Having a property management company to help you navigate your real estate investment property allows you to spend more time doing what you love and less time overseeing your investments. A property management team will enable you not to sweat the small stuff like maintenance, rent, finding tenants, and other minute details that take up your time.

At Rooftop Real Estate Management, we know the value of your time, and we want to help you protect it.

Lower Stress

Managing a rental property can be stressful because a million things need to be done to have it run smoothly and successfully, and to properly take care of your property. Not only does this take your precious time, but it can cause stress.

While any investment is bound to come with some stress, real estate doesn’t have to. We are happy to take on that stress and make sure everything runs smoothly without causing you to lose sleep.

Investing in Property in Idaho

In the past 2 years, Idaho has become one of the best places to invest in real estate because of the growing population and economy. People have been moving to Idaho from across the country, meaning a higher demand for rental units because of a growing job market and economy. This makes Idaho (specifically Idaho Falls, Rexburg, and Boise) one of the best places to invest in real estate properties. Idaho is just overall a fantastic place to live.

It is also one of the cheaper places to invest in real estate because of the lower price per square foot compared to other areas. While it can be cheaper to invest in a property, the appreciation of homes and real estate is astronomical right now, making it easy to sell for a profit.

On top of that, there is demand no matter the home, apartment, or rental unit. People are searching to rent out all types of homes as they move to settle and start a life in Idaho. There is a growing job market (along with the increasing population), meaning people of all types are looking for a home.

If you think Southeast Idaho could be the right place for you to invest in a real estate property, check out this article about what types of homes you should be looking for as a prospective investor.

Rooftop Real Estate Management is one of the best property management companies in Southeast Idaho. We would be happy to answer any questions about investing in property, managing your property, or starting your investment property journey. Contact us today!