“Property Management is one of the key members of a successful Real Estate Investment Power Team. Engaging in their services and knowledge prior to the purchase will ensure your asset will be meeting your investment goals.”
– Carla Browne, Owner and Broker of Real Property Management Professionals

1. Real estate professionals specialize in the sale of a property. Property Managers live and breathe rentals every day.

Real estate professionals specialize in creating the connection between two parties to initiate the sale of a property. Think of this relationship as a business-to-business (B2B) transaction. Typically, the result of this relationship is one party buying a property for their own residence.

Consider taking a reverse approach to real estate investing. Consult with a property manager prior to meeting with a real estate professional to discuss (1) neighbourhoods and a typical rental income for that area, (2) strategies and goals (i.e., buy and hold versus immediate cash flow), (3) residence types (i.e., houses, condos, townhomes), and (4) services after the purchase have been made. Property Managers understand the relationship between tenants and investors (business-to-consumer, or B2C), and have learned to mitigate the relationship to maximize incomes for the investor and provide value for tenants.

Oftentimes, investors are disappointed that their property cannot rent for what they expected. As a result, expenses may be greater than cash inflow and the investor may decide to sell or be turned off from investing in the future. We don’t want this. We want to help the investor throughout their journey and promote the rush of excitement a person gets when owning a rental property!

2. Property Managers understand consumer behaviour for both investors and tenants

Consumer behaviour is the study and process of how individuals, groups and organizations approach the buying process for goods and services. Consumer behaviour is reflective of an individual’s motivations, attitudes, and preferences and examines the psychology behind their actions. There is a five-step approach to a consumer’s purchasing decision:

1. Problem recognition – Perceiving and recognizing a need for a solution
2. Information search – Gathering information and research that provides value for the solution
3. Evaluation of alternatives – Assessing the value of researched alternatives and creating subliminal pros/cons for each alternative
4. Purchase decision – Deciding on the alternative that presents the most value at that given time
5. Post-purchase behaviour – The value correlating with the chosen alternative and the opportunity cost associated with the purchase decision

Now, let’s run through a quick purchasing decision process for both tenants and investors:

•  Tenants – Recognizing a need to change living accommodations. Should they buy or rent? In this scenario, they choose to rent. Let’s start the rental process. During the information search, they ask themselves, “Where should I live? What is my budget? What housing style am I looking for (i.e., condo, townhome, house, etc.)?” Through rigorous Google searches, they have picked three properties that check their boxes. Next, they put in an application and get approved for two of the properties. Great! Now, they need to further evaluate their alternatives and decide on the option that best correlates with their short- and long-term goals. The tenant decides on property A and is ready to sign the lease and move in! However, after moving in, the tenant will always have those “what if I chose option B” thoughts. It is up to the property management company to provide continuous solutions for the tenant throughout the lease to promote renewing for a second term. As a result, this allows the investor to maximize their rental income!
• Investors – Investors have either (1) accidentally fallen into rental property investing, or (2) seek rental property investing as a means of passive income. Regardless, they are now real estate investors. Next, the investor researches investing strategies to maximize rental income. As part of the information search, the investor weighs out the options of self-managing versus property management. Each option presents opportunities with reoccurring costs. In this situation, the investor chooses a property management service to help save time and maximize rental income. Post-purchase, it is the property management company’s responsibility to provide added value service to the investor.

Property Managers understand the purchasing process for both tenants and investors. At each stage gate, Property Managers are here to act as consultants and provide solutions to propel the decision process forward. We live and breathe the market every day – no topic is off limits! You name it, we have dealt with it.

Consulting with a property manager before investing in a rental property will help minimize tenant discrepancies from occurring during their purchase decision process.

3. Property Managers understand and keep up with market trends

Keeping up with market trends is a full-time job in itself! It’s hard to decipher between what topics are noteworthy, which are irrelevant, which topics are going to affect your portfolio, and which are going to influence your investing habits and strategy. At RPM, we prioritize staying to date with current news and trends. As an investor, you’ll have peace in mind knowing RPM is utilizing market trends to maximize your investment.

At Real Property Management Professionals, we encourage and practice continuous learning by partnering and joining organizations that extend our knowledge base. RPM Professionals in Saskatoon learn from leading organizations such as the Landlord Credit Bureau, Mello Insurance, Second Nature, the Greater Saskatoon Chamber of Commerce, North Saskatoon Business Association, Saskatchewan Landlord Association, and the Real Estate Investment Network of Canada (REIN). You’ll see our team attending events, webinars, and getting to know the local community. We pride ourselves on staying informed to maximize our clients’ rental income and exceed their investment goals!

Using both internal and external data, Property Managers stay up to date with the latest trends. From the vast network of properties we are managing, Property Managers can keep you informed on what style of property is both performing well and undertaking challenges in the market. At RPM Professionals, we manage single-family residences that include townhomes, condos, and houses in all areas of Saskatoon and surrounding communities. Have a question about a specific neighbourhood, average rental income, or market competition? Ask us! We’ll be able to give you information based on current news and our personal experience.

Conclusion

The rental market is constantly changing. Consumer behaviour, market trends, rental policies and government regulations are evolving and updated regularly. It can be overwhelming to keep track of everything going on! Establishing a real estate power team prior to making an investment purchase will alleviate potential hurdles down the road – plus it’s free!