Ever heard the term “analysis paralysis”? We all face decision-making situations in which the sheer number of variables keeps us stuck and unable to move forward. As a property investor, you’ve faced plenty of times like these, especially if your business is growing.
Managing daily tasks associated with your Jacksonville residential investment properties as well as developing your business can become overwhelming. Is now the time to bring on a building management company?
Salient Stats About Residential Building Management Companies
If you follow the news about the U.S. multifamily real estate market, you know there is no shortage of people looking to live in multifamily buildings.
- Did you know that more than two million units have been built just in the last ten years? Check out this graph of US apartment “deliveries.”
- Buildium issued a report last year showing that 19% of people renting live in a multi-family building. A third of all people who rent live in medium-sized to large residential buildings.
Residential Building Class Distinctions
If you’ve been an investor for long, you know these asset classes for residential and commercial buildings. Still, here’s a refresher:
Class A
Prestigious buildings with rents above average, superior quality finishes, prime locations, and higher-end amenities (fitness centers, cafes, and pools).
Class B
Good quality buildings in decent locations, rents in the average range, good quality finishes, but usually few amenities.
Class C
Buildings are functional but may be outdated; in this class rents are lowest.
What Can a Jacksonville Residential Building Management Company Do for You?
Whether you own a Class A, B, or C residential building in Jacksonville, FL, having a company manage the building for you has many benefits. Overall, the management team will be able to optimize the earning potential of the building.
- Marketing Experience and Depth. Imagine not having to worry about how to get the word out about your building to prospective renters. A management company does all that for you, and because it’s their business, they know how, where, and to whom to advertise. This means your units rent quickly.
- Tenant Screening. If you own a building with lots of units, that means you must screen lots of tenants. It’s time-consuming. If you’re screening tenants by yourself, it can be easy to fast-track the process to save time, but you risk getting problematic renters. Building management companies have enough staff to carefully screen every tenant, ensuring better-quality renters.
- Informed, Competitive Pricing. Drawing on their knowledge of the local real estate market and what renters are looking for in your building class, the management team can set attractive rental prices to interest potential tenants and still turn a maximum profit.
- Maintenance Management. The ongoing maintenance of residential multi-family buildings is relentless. One person cannot handle them all. A residential building management company has the resources to take work order calls, deal with emergencies, and keep your property in great shape.
- Property Improvements. A building management company can assist with overseeing capital improvements and managing budgeting, accounting, and contractor communications.
Questions about the management of your Jacksonville residential building? Call Locklear Partners & Property Management at (904) 431-0204.
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