Updated January 8, 2023.
Once you establish your real estate investment business, you may quickly find that it can grow rapidly, opening the door to new opportunities as it does. Once that first residential rental property is running well, and you build up your capital reserves, you may be ready to buy again—adding more profit potential.
Before you do, we recommend taking a look at some of our insights as a Maryland property management company to ensure long-term success and the right decision-making process.
How can you manage a growing real estate investment portfolio with ease in the Baltimore area? Let our Rent Estate™ Advisors help you through the process.
Recognize the Work Involved in a Growing Business
No matter how many tips you have for managing rental property, the more experience you have, the better. That experience will also help you know how to grow your business in a meaningful way.
Initially, when you started investing in the Baltimore rental market, you had a big learning curve to overcome. Now that you are through it, things are likely a bit more steady and fluid. Adding other residential and commercial properties to a stable portfolio helps shelter you from some of that potential chaos.
However, it's important to remember here that when you add more properties to manage, the amount of work you have to do grows with it—often far beyond what you can do yourself.
- Managing maintenance and repairs will require more time.
- Meeting legal requirements will require additional research.
- Handling inspections year-round can add up as a time investment.
- Funding upgrades and handling emergency maintenance issues get costly.
- Your list of trusted vendors has to be able to handle the added workload of new properties.
Every property you add under management in your portfolio adds more renters. The more people involved in your business, even as renters, the more communications you need to handle.
When you consider the additional cost in time for each new rental property, you'll quickly see the benefit of having some extra help 'around the house.'
It’s Time to Bring in Some Support
Perhaps you are ready to quit your day job, and you plan to do all of this work on your own. That’s great for someone with the time, knowledge, and ability to do so. For others, it may not be that easy. That’s why it becomes important to turn to a Maryland property management team to help you.
Sure, you could hire individual help in specialized positions to fill each role your growing portfolio requires. However, you'd then need to set up an employee identification number and establish your business formally—and address all the additional fees and expenses that come with it.
- You'll need to manage payroll (or find a professional that can), taxes, and meet all other legal requirements of managing employees.
- At the same time, you need to be sure your new team members have the tools and means to support you, including experience with managing successful rental homes.
That sounds like a lot of work—and cost, too. Thankfully, an experienced provider of Maryland property management services can handle just about every task on this list. It's much more affordable (and effective) to hire one professional to do the work for you—and eliminate the excess expense.
It’s also a lot easier to let a full-service property management company handle tenant screening and renter management from the start rather than being forced to distribute each task to an individual employee.
We Can Help You Grow
It’s clear that working with our experienced Rent Estate™ Advisors makes sense. How do you find and use a service like this even while you are working on growing your business?
As noted earlier, many property investors get over the difficult first year or so of owning real estate and find themselves in a groove. Your portfolio is working—but now you want more of what works to fuel your financial goals. With this in mind, it's critical to remember a few things before you hire just anyone.
- Choose a full-service property management company devoted to your growth. Be sure to look for a company that understands what your specific goals are in growing your portfolio.
- Work with a company that has the scale and experience to handle larger portfolios. They can use this expertise to minimize the risk of complications as your company grows.
- Utilize the services you need with a growth mindset. This may include property management services to help you find a new property to invest in, rental market analysis, and the ROI evaluation of any opportunity.
A Maryland property management company that has the pulse of the market can often help you find your next rental property that's in line with your long-term goals.
At Renters Warehouse BW Metro, we can do all of the above—and so much more! The key to remember about investing in real estate is that every property you add to your portfolio should be carefully selected to enhance—not reduce—the viability and profitability of your company. Take a bit of the pressure off yourself from managing day-to-day tasks so you can focus on the bigger picture.
Let our team help you every step of the way to build your success. Get started with our free resources when you download your copy of our guide to real estate investing!