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The Role of a Property Management Company in Building a Strong Investment Portfolio - Article Banner

As you think about building a strong investment portfolio, you’re likely thinking about the partnerships that can help you succeed. Even if you’re new to investing, you have likely noticed over the last year or two that the properties you buy and hold will steadily grow in value, and sometimes that growth will be faster than expected. 

The market is always changing, and investors who are smart and prepared have opportunities to grow their portfolios and increase their scope and value in any market

Right now, the rental market is strong. Rental values are increasing and inventory is low, setting up real estate investors who focus on rental properties for high occupancy and retention rates

As you’re thinking about your long term and your short term investment goals, you need to know the best way to expand your investment portfolio is with the help of a local property manager

Yes, you rely on your property manager to place residents, establish the right rental value, collect rent, and respond to maintenance. But, we can do much more for you when you’re willing to tap into our expertise. We can help you build a strong investment portfolio. 

Let’s take a look at what we mean. 

Increasing Rental Income on San Diego Investments 

When you think about building a strong portfolio, you might think this means adding to the number of properties you currently own. 

Certainly, this is one way to do it. But, it’s not the only way. You can also increase the size and strength of your portfolio by making the properties you currently own more valuable. 

Property management helps you earn more rent. This starts with pricing your property for profit. We know the market better than you do as an independent investor. We have unique strategies for:

  • Understanding the rental values
  • Evaluating the competing properties
  • Following the changing demands and preferences of residents. 

All of this expertise and all of our tools and technology helps us establish a rental price that doesn’t leave you playing catch-up. That leads to a stronger portfolio.

We can also recommend improvements and upgrades to your property that will increase your rental value and help you attract high quality residents. 

We know which updates and renovations are the most cost-effective. You’ll find you’re able to reduce your vacancy loss, keep your good residents in place, and charge more in rent because of the advice we offer and the project management support we provide. 

Protecting Your San Diego Investment and Income

The role of your property manager in keeping costs down cannot be overstated. This helps you grow your portfolio by giving you more available cash and increasing equity. Protecting you from risk and liability is an important part of helping you succeed as an investor. 

Expect your property manager to provide the sort of protection and risk management that is difficult for independent landlords and investors to access on their own. We understand all of the local, state, and federal rental laws that pertain to your property. We understand how to properly return a security deposit and what to do when a resident doesn’t pay rent. 

We protect you from unqualified residents and expensive legal mistakes. This is essential to maintaining and growing a strong portfolio. 

Property managers save you money on:

  • Maintenance and repairs
  • Vacancy and turnover
  • Cleaning, landscaping, pest control, and other services
  • Evictions and legal risk

We accomplish this by maintaining great relationships with some of the best vendors, contractors, and service providers in the San Diego area. The volume of business we provide them with our large portfolio of rental homes means they prioritize the work we need. They also give us their best discounts, which we pass on to you. This reduces your repair and maintenance bills, which is extremely helpful as those costs just keep rising thanks to inflation and labor shortages. 

Treating Your San Diego Investment Portfolio Like a Business

A property management partner allows you to treat your San Diego rental property like a business. 

This requires business decisions, which can be difficult if you’re hands-on and over-involved. 

Smart investors understand that they need to lean on the expert advice of property managers and other professionals. They understand the importance of buying the right properties at the right time in order to strengthen their portfolios. 

One mistake that a lot of investors typically make when they’re growing their portfolio is to buy anything and everything. That’s not a good strategy. You want to find an investment that will bring in some great short term cash and long term returns. You want a home that residents will be interested in renting. 

Property managers will help you look at every potential acquisition from the standpoint of a potential resident. Will they want to live there? Will they be willing to pay the rent you will ask? 

It’s about quality, not quantity when you’re growing your portfolio. Keep the emotions out of it, and focus on smart business decisions. Don’t buy high priced homes that you’ll have trouble renting or properties that need a lot of work. 

Think strategically, and make a business plan. Your property manager can help you do this. Don’t wait to bring a management company in after you’ve invested in a rental property. By partnering with a management company during the purchase process, you can get an idea of how much rent you’ll earn, how much maintenance will be necessary, and whether prospective residents will be excited about the home. 

Property Managers Help you Diversify

There’s strength in a diversified portfolio. 

  • If you own primarily single-family homes in HOA communities, this might be a good time to look at some multi-family units or a small apartment building. 
  • Consider commercial spaces if you only own residential property. 
  • New markets are also a great way to diversify. 

Diversify PortfolioDiversifying your investment portfolio will do more than add to its strength and profitability. It will also protect you from the risk you take on when all of your assets are in a single class of property or a single geographic market. Property managers can help you facilitate this.

If you’d like to talk about your own investment goals, the state of your current portfolio, and some ideas for making it stronger, please contact us at Walters Home Management.