Learn from our property management experts!
Investment properties can be a great type of passive income. From the tax benefits to the monthly income from rental payments, it is also one of the most secure investments on the market. However, it still takes hard work to begin seeing a profit. If you are considering a real estate investment, read on to learn what return on investment (ROI) and net operating income (NOI) mean for your property.
As a general rule of thumb, a good ROI for investment properties is above 10%. This could be lower depending on the level of risk you take. You can calculate ROI using a rental property calculator, but you will need to understand the following metrics first.
Another consideration for ROI is time. Your returns do not take place overnight. In fact, many recommend holding a real estate property for a minimum of five to ten years to allow for a full look at the ROI on a rental complex. Keep this in mind as you plan for your future and what this investment income will be needed for.
Investment properties are often a long-term strategy. While there may be some fluctuation in occupancy as the market ebbs and flows, you are in a very good position to see a strong return on your investment over time. One way you can directly influence this is through the management of your property. Happy tenants tend to stay longer in their rentals, which increases your occupancy and bottom line.
A great way to ensure your tenants have an excellent experience is by utilizing a property management service. This service provides you with a team of dedicated professionals who are able to handle the nuanced concerns of your residents without delay. Many real estate investors have full-time jobs and do not have the 24/7 availability residents desire. A property management company alleviates this by offering rental management, marketing, maintenance, and customer complaint resolution services.
MMC Properties is a premier property management company in Middle Tennessee, serving the greater Nashville area of Smyrna, LaVergne, and Murfreesboro. To learn more about the services we offer, call (615) 849-9006 today.