Multifamily properties are the holy grail for real estate investors. After all, many large apartment complexes can produce millions in revenue every year. However, there are reasons why many investment owners never leap from owning one or two single-family rentals. For starters, purchasing an apartment complex requires a lot of available capital, which many people don’t have access to. What’s more, multifamily properties are much more complicated to manage than a stand-alone rental. Even if you’re not ready to become an apartment home mogul, there are still plenty of opportunities to profit from Portland Multifamily property management. Here are a few things to consider before taking the plunge.
From a financial perspective, the thought of collecting rent from dozens or even hundreds of tenants might sound attractive. However, it takes a lot of work to make it happen. That’s dozens of leases to manage, multiple move-ins and move-outs to arrange, and near-constant repair requests. A large multifamily rental property needs a team to make it run successfully. From accountants to repair professionals and property managers, it’s much more than a one-person job. But motivated investment owners can still dip their toe into Portland multifamily property management on a smaller scale.
Instead of scaling up immediately with a large property, start small with a duplex or triplex. These properties allow owners to realize some of the same benefits of apartment ownership, namely, multiple tenants living in a single property while requiring fewer management resources. With a smaller property, you can learn what it’s like managing numerous units at once, with much less money on the line. Once you’ve tested the waters, you begin moving into larger properties until you’ve reached your multifamily ownership goals.
Calculating your return on investment for each investment property is a crucial component of rental homeownership. This process is how you’ll determine if your investment will be a money pit or a cash machine. One element of these calculations is an estimate of your monthly expenses. These costs include things like marketing, insurance, loan payments and interest, maintenance, and repairs. Use conservative numbers as you’re calculating the anticipated expenses on a potential multifamily unit because they will almost certainly be higher than you expect. Remember, you’ll be responsible for maintaining multiple kitchens, multiple bathrooms, and the systems that serve all the units together. This area isn’t a place to take risks, either. If you don’t think a Portland multifamily property management project can be financially successful, don’t buy it.
Create Community Standards
Another unique aspect of multifamily property management is handling tenant disputes. This issue isn’t typically something single-family rental owners deal with. However, whenever you have multiple people living in close proximity, conflicts will eventually arise. Landlords can mitigate some of this discord with thoughtful community standards all tenants agree to abide by. These standards could include noise guidelines, smoking policies, trash disposal and collection rules, and more. When tenant disputes arise, this document can serve as a guideline for remedial actions. What’s more, if a tenant consistently disregards your community standards, that could be grounds for lease termination.
As with all landlord-tenant documents, owners should have an experienced real estate attorney draft these standards. This step will ensure property owners are protected and abiding by all relevant municipal, state, and federal housing laws.
As we mentioned previously, Portland multifamily property management requires an advanced approach to be successful. Investment owners need a system that allows them to track multiple rent payments, repair requests, and maintenance projects simultaneously. Landlords also need to pay special attention to record-keeping so they can maximize year-end tax deductions and defend themselves against potential legal actions. Unlike single-family rentals, multifamily property ownership can’t be a side-hustle. This investment needs someone’s complete attention, or else, problems can quickly spiral out of control.
Handle Repair Requests Quickly & Maintenance Tasks Proactively
Repair requests can be a massive headache for property owners. Not only do you need to find a trustworthy vendor to work with while coordinating your tenant’s availability, but you also have to absorb the cost of the repairs. However, handling these repair requests quickly is an essential part of taking care of your property, and maintaining a positive relationship with your tenant. Your goal is to keep your units occupied, so they continue producing revenue. Well, nothing will drive a good tenant away faster than repairs that go unfixed. Plus, ensuring each unit is in optimal condition means you’ll spend less on ongoing maintenance. So with this in mind, it’s critical to address all repair requests within 48 hours.
Maintenance is another significant component of Portland multifamily property management. Each unit will have separate maintenance requirements that you’ll likely handle at different times whenever vacancies arise. These tasks could include replacing the carpet, painting the walls, installing garbage disposals, or replacing windows. Additionally, your multifamily property will have maintenance tasks that impact all the units at once. These projects could include roof replacements, HVAC installation, or carport repairs. If you want to keep your property in prime condition, it’s best to handle maintenance tasks proactively so you can control your costs. In other words, don’t wait until something breaks to fix it. Instead, create an annual and semi-annual maintenance schedule you follow so you’re always at least one step ahead.
We Can Help with Portland Multifamily Property Management
You don’t have to tackle multifamily property management by yourself. Rent Portland Homes by Darla Andrew has a group of professionals ready to help. We employ accountants, maintenance professionals, property management experts, and more, who are all dedicated to your property’s success. By partnering with Rent Portland Homes by Darla Andrew, you’ll gain a property management team’s experience without incurring the full cost of hiring one yourself. Instead, you can sit back, content in the knowledge that your property and tenants are well cared for.
We’d love to talk more about how we can help you reach your Portland multifamily property management goals. You can call Darla directly at (503) 515-3170 or complete the contact form on our webpage. We can’t wait to hear from you! Until then, follow us on Facebook, Instagram, and YouTube for property management tips and the occasional look behind the scenes at the Rent Portland Homes office.