Investment Properties and the Benefits of Partnering with a Property Management Company!

Going into the New Year many of us have personal and financial goals.  Investment properties are an amazing way to make money and build wealth!  Also, in economic times where some people might avoid a move, but love to buy an investment property as prices fall, we have some interesting information and a partnership to educate you about with Real Estate One’s Property Management Company, Rental Management One. 

So, how can this Property Management Company help your business thrive and avoid the risks involved in owning investment properties?

First let us share some current stats and facts!

Rent has increased by 11% in 2021 to 2022 in Michigan and 26% in the nation.  

Short term rentals make 4 times, yes 4 times more revenue on average than a long term rental.  We are talking by use of Airbnb and Vrbo.  

Short terms have a higher initial investment because they have to be fully furnished along with things such as linens and towels, kitchen ware, and in addition lawn care, snow removal, etc.  However, the return is usually seen by year 2.  

Long term rentals incur far more wear and tear on average.  We share this so if you are a new property investor, you can weigh out your risks and benefits between long term and short term rentals.

Your costs using a property management company for long term will be approximately 8-12% of the rent for long term rentals verses 20-28% for a short term stay.  This is because there is weekly cleaning, staging, inventory taken / replacement of items taken or destroyed, and repairs made by the property management company for the short term, etc.

Rental Management One, which we can speak for, handles so much of the hassle of property management for you so that you can rest easy on your rental that everything is taken care of.  They do so many things as mentioned above and they do all booking, collection of payment, accounting, rental certifications, inspections, handle legal issues, screen tenants, coordinate maintenance, and deal with the municipality, etc.  

Municipality restrictions can be tricky to deal with.  There are loopholes however that Rental Management One is well aware of and ready to deal with on your behalf.  They will fight for your rental license as they are limited in number.  They will stand in line like they’re waiting for concert tickets in the old days at 5am if they have to!

Other benefits of using Rental Management One as your property management company is that they have an Amazon shopping list set up for home owners as a guide to what they will need for their rental.  They also handle the professional photography, marketing of the property on popular media such as You Tube, Airbnb, Vrbo, etc.  They will decorate the property; the works.

If you are looking to purchase an investment property, contact us how we can assist you with the purchase!  If you have an existing one and are looking for a property manager, we can get you in contact with Rental Management One, and that will be a free service to you of course!

We look forward to working with you!

The Mulvihill Group

Turning Dreams Into Memories