Some one is asking a Philadelphia property management company owner what are the most profitable properties that we manage?
Maneuvering in Philadelphia, managing rental properties is not just a business—it's an art. As the owner of a Philadelphia property management company and a voice on the Grow Real Estate Investing Podcast, I’ve had the unique opportunity to both manage and own rental properties in this dynamic city. Today, I’m excited to share insights that can help fellow landlords—those who are ethical, moral, educated, and keen on picking up tips for managing their rental properties more effectively.
The Art of Profitable Property Management
A question from one of our listeners, Tamir, sparked an interesting discussion in our latest podcast episode. He asked about the most profitable properties our company manages. It’s a complex question because profitability can hinge on various factors, from property class to whether it's a multi-family or single-family residence. However, I've found that the properties my wife and I own and manage through our Philadelphia property management company stand out in terms of profitability.
Before you jump to conclusions about preferential treatment, let me clarify. Our properties are integrated into the system like any other, receiving no special attention from our staff or contractors. This neutrality ensures that our success is replicable for any investor willing to adopt a similar approach.
The Key to Maximizing Rental Property Profits
Our philosophy centers on making our rental properties highly rentable. Instead of viewing them merely as investments, we treat each property as a potential home for someone. This mindset shifts our renovation and maintenance strategies from the bare minimum to creating spaces that are fully functional, appealing, and above all, homely.
An example that illustrates our approach is a property we purchased and renovated for a total investment of around $123,000. Despite initial estimates placing its rental value at $1,200, it currently rents for $1,640, thanks to our strategic improvements and attention to detail.
Beyond the Financials: Creating Homes, Not Just Rentals
When renovating or upgrading a property, our goal isn't just to meet the bare minimum requirements of a rental space. We aim to enhance its functionality and appeal, considering everything from bathroom usability to outdoor amenities like electric outlets and spigots. This approach not only increases the property’s rental and market value but also its appeal to a broader audience, including potential buyers, should we choose to sell.
Lessons in Property Management and Investment
This philosophy extends to how we perceive and handle investments in property improvements. High-quality paint, functional additions, and aesthetic enhancements are not just costs; they're investments in the property's future profitability and desirability. This principle has guided us to never experience a situation where damages exceeded the security deposit or to face difficulties in re-renting a property.
The Misconception About Co-signers and the True Value of Screening
Through the podcast, we also touched on the topic of co-signers and their perceived value. While additional names on a lease might offer an extra layer of security, the real power lies in thorough tenant screening. Our experience has shown that a deep dive into a prospective tenant's character and responsibility is far more indicative of a successful landlord-tenant relationship than any financial backing a co-signer might provide.
Final Thoughts: A Call to Fellow Landlords
To my fellow Philadelphia landlords, the path to successful property management and investment is multifaceted. It requires a blend of meticulous screening, strategic investment in property improvements, and a vision that sees beyond the immediate financials to the long-term value and desirability of the property. By treating each rental as a potential home rather than just an asset, we open the door to not only maximizing profits but also enriching the living experiences of those we serve.
As we continue to explore and share our journey through the Grow Real Estate Investing Podcast, I encourage you to rethink your approach to property management and investment. Together, let's raise the bar for what it means to be successful in Philadelphia’s rental market.
Remember, the key to thriving in this industry lies in our ability to adapt, innovate, and always, always put the quality and functionality of our properties first. Here’s to making informed, strategic decisions that not only benefit us as landlords and investors but also contribute to the betterment of our tenants' lives. Happy investing!
