Projections show that the global property management market will reach a value of $37.25 billion by 2029.
There are many types of property investors who use different strategies and go for different types of properties. If you're looking for a first-time investment, some types may be more suited to you than others. One of the key things to think about is property management, and how a professional service could benefit you.
In this guide, we'll go over some of the best types of properties for first-time investors, and look at the advantages of each.
Family Homes
Single-family homes are a great place to start for investors. It's good to buy one in a suburban area close to a highly rated primary school. Families that are looking for a new home will gravitate toward this type of property and are almost always looking to stay long-term.
Long-term tenants mean less turnover, which makes things easier for you. While the monthly income won't be the highest, your tenants will be more likely to renew the rent each year at a higher rate.
If you decide to sell the property down the line, it will likely have increased in value significantly, giving you a good return and allowing you to move on to your next property with ease.
Condos
The size of properties can affect how easy they are to rent out or sell. Smaller than 500 square feet properties can prove more difficult, so you should go for ones that are larger than this. Condos also generally do very well when they're close to colleges and universities.
A property near a college will always catch the eye of students, so you'll have no shortage of tenants. Just note that the turnover will be high, as you'll typically have new tenants every year. Compared to a family home, condos tend to have lower equity, but higher monthly income.
REITs
REITs (real estate investment trusts) are ideal for passive property investors, as they involve little active input from you as an investor. You can invest a small amount to buy a portion of a property, and the REIT will handle the day-to-day management. They then pay you a portion of the income, relative to your investment.
Whether it's a residential or commercial property, this is ideal if you want to invest in real estate but don't have the time or money to buy and manage a whole property yourself. This type of investing is generally low-risk and is a good way to diversify your investment portfolio.
Multi-Tenant Properties
Rental properties can often provide multiple streams of income, and one of the most common examples of this is through properties that can house multiple tenants. This isn't possible with all properties, as it will need to have more than one entrance and be fitted internally with everything necessary for these different tenants.
You can buy a property that's already designed in this way, or you can buy a larger property and split it down yourself. The latter method takes a larger initial investment in terms of both time and money, but the returns will be higher.
Managing Different Types of Properties
Regardless of the types of properties you're looking at, one of the most challenging aspects is management. If you've never managed a property before, this can be especially challenging.
Harrisburg Property Management is a professional property management service that can help you with whatever you need. We already manage over 32,000 units across the US, so we have plenty of experience. To find out more about our services, click here to contact us today.
