Investing in an Issaquah property for the first time can be a challenge, especially if it is your first investment. Property owners must carefully research options and spend their money where it is most likely to give a return. Unlike other types of portfolios, real estate investments require constant management, landlord tenant interaction, and a great deal of paperwork and knowledge of relevant laws. For this reason, potential Issaquah landlords must not only choose property to invest in, but also decide between handling the management themselves, and hiring a professional Issaquah property management company. For that reason, we’ve compiled a list of helpful information to get you started. You can also call SJA Property Management at any time (425.285.1324) to get a free professional consultation.
Buying Rental Property in Issaquah, Washington
Buying investment property in any part of Issaquah should involve a great deal of research. Because housing prices are relatively high, you have to set a budget, check your lender and credit opportunities, and then search for properties within your budget. If you have the budget, a larger multi-family unit is always more profitable in the long run, but if you’re dealing with a smaller budget, a better idea. Choosing property should involve the following:
- Appraisal (will the property be profitable)
- Comparison (are there better options)
- Potential ongoing maintenance issues
- Desirability of the property for tenants
These steps should involve considering the location (for example, if the property is near Lake Sammamish then it is easier to rent out), considering the average rent rate once occupied, and considering any repairs or remodeling that might be necessary to make the unit rentable. Multi-family units typically cost less than $100,000 (average $70,400-$92,400) per unit, while single-family homes and condominiums typically cost between $220,000 and $660,000. There are also homes which can demand far higher prices. Marketing for those tenants is different than the marketing needed for lower cost properties.
Managing a Rental in Issaquah
After purchasing property, it is time to decide if you can manage it yourself, or if you want to hire a professional Issaquah property manager. If you choose to manage your own property, you will have to brush up on Washington landlord/tenant law, learn Issaquah’s safety codes, and deal with maintenance issues on a regular basis. You will also have to handle advertising, screening tenants, creating lease and rental contracts, and staying on call in case of emergency for your tenants. Finally, you have to collect rent and handle tenant relations. Managing your own property can be somewhat overwhelming, which is why many landlords choose to hire a property manager. However, with diligent attention and regular inspections a home owner can successfully manager their own investment properties.
Do I Need a Property Manager?
Property management is not for everyone, and if you have no experience as a landlord, you could actually hurt your profits while you learn. A professional Issaquah property management company like SJA Property Management can help you to maximize profits because we know the area, and we know how to fill your units quickly. At the end of the year the number one determining factor for how profitable your investment has been will be your vacancy rate. We also know local contractors and companies so that we can handle your maintenance and repair issues as quickly and affordably as possible. Finally, because we have experienced real estate and law professionals on our team, we can handle your paperwork, legal issues, and standard management flawlessly so that all you have to worry about is receiving a check.
Sound interesting? Contact us today at 425.658.1920 to talk with one of our property management professionals about your property.