If you’re an investor looking to buy a rental property in Santa Rosa, you’ll want to make sure you’ve surrounded yourself with all of the best local professionals. You’ll need a broker, a lender, a property manager, and a real estate agent. You’ll eventually need vendors and contractors who can help with renovations and preparing the property for the rental market. You’ll want an attorney and an insurance agent and probably a CPA or a tax expert.
The role that your real estate agent plays is probably pretty obvious. They’re going to show you the properties that might be a good fit, and then negotiate the details of the purchase so that you get the price and the terms that you want.
The Role of a Property Investor’s Real Estate Agent
A good real estate agent will help you find the ideal investment property. They’ll understand that you’re not buying the home to live in it yourself but to rent it out to other people. This makes a difference in what you’re hoping to find and how you’ll prioritize location, amenities, features, size, etc.
Real estate agents will also help you negotiate. A good agent will ensure you don’t pay more than you have to for your investment. They’ll coordinate and organize inspections and other due diligence items in the lead-up to your closing the deal.
The main role of your real estate agent is to help you buy your investment property. They won’t have a role in managing that property or finding tenants or getting it ready for the rental market. You’ll lean on your Santa Rosa property management partner for those things, and we’ll talk more about that a bit later.
As an investor, count on your real estate agent to look at potential properties within your price range, schedule showings, negotiate price and other terms, and help you navigate the details that are likely to come up during the closing.
How to Choose a Real Estate Agent for Your Santa Rosa Rental Investment
When you’re looking for the right agent, what should you be looking for, and where you can you find the right agent?
Start by asking for referrals and recommendations from close friends, professional colleagues, and people who work in real estate. People who have had a good experience will be eager to tell you about it. Ask your Santa Rosa property manager if they don’t do real estate and you need an agent. Talk to your accountant or your lawyer or even your financial advisor.
You can also ask other investors for some referrals. If you have a good relationship with another real estate investor or you admire the success of someone who rents out properties, ask them who they use. This is a great way to connect with agents.
Be willing to interview a few agents before you choose someone to work with. Prepare some questions in advance or see if they’ll be willing to show you a property or two before you sign on with them. This can help yo understand how they work and whether their process is likely to align with your own.
Some of the things to discuss during your interviews with potential agents include:
- Your ideal location and price. You’ll want to talk about the type of investment property you’re looking for. To find the best fit, you’ll want a real estate agent who understands your target location and has bought and sold homes there before. You’ll need some insight into the neighborhoods, and a good agent will provide that. Talk about your budget. How much are you willing to spend? Be clear and direct on this, and listen to your agent when they’re telling you what kind of property you can expect to find at your price point.
- Potential property type. Are you looking for a single-family home or a multifamily property? Do you want to buy an entire apartment building or just a few units inside of a larger complex? Discuss your preference for a newer construction property or your willingness to invest in an older home that’s in an established neighborhood.
- Experience. You’ll want to know when they became an agent and what led them to the real estate industry. Talk about what they did before real estate and whether they’re working full-time as an agent or part-time. Do they have their broker’s license? Are they a certified realtor? What kinds of professional development endeavors do they invest in so that they stay current in their profession? These are all good questions to ask to get an idea of their experience and their history of successes and challenges.
Always talk about communication and expectations when you’re interviewing potential real estate agents. You want to make sure they’re familiar with real estate investing. If they own investment properties of their own, that’s a huge bonus.
Some of the factors that should drive your ultimate decision will be:
- Chemistry. It’s not a popularity contest, but honestly, you want to like the agent you’re working with. A buying process that includes conflicts and misunderstandings will not only be unpleasant but also counterproductive.
- Aligned business goals. A shared sense of how things should be done will help you have a better experience while navigating the real estate market. A mutual understanding of what you’re trying to accomplish by buying an investment property will make it more likely that your agent will show you an appropriate rental home. You want to know what your definition of success is when it comes to investing, and you want to be sure that your real estate agent shares the same understanding about what looks like progress and what makes your investment a success.
- Location. You need a real estate agent who is local and understands the Santa Rosa market. This will help because they’ll be well-connected. You can leverage their relationships and their professional network.
Good real estate agents are communicative, trustworthy, and committed to helping you have the best possible experience. Agents who are good for real estate investors are able to understand the market, they have a lot of local knowledge and experience and a great reputation among their peers. They should have at least a basic understanding of investing basics. It will help if they know what kind of ROI can be delivered on a renovation, and they’ll be able to see potential in specific properties worth showing you.
Santa Rosa Property Managers Who Also Provide Real Estate Services
We have talked about the role of your real estate agent when you’re investing in property, and most investors know that a property management partner is also essential. While your property manager won’t necessarily show you potential homes and negotiate prices on your behalf, they will be able to tell you what a property is likely to rent for, how much you’ll probably spend on maintenance and repairs, and what kinds of renovations will be necessary in order to prepare the property for the rental market.
Property managers can help investors identify the right opportunity.
Then, we can take care of the leasing, the management, and the maintenance of your investment property. We’ll handle all of the tenant relations and we’ll make sure you stay compliant with all the state, federal, and local laws.
You can use a separate real estate agent and property manager, or you can look for a company that provides both services. This can come with a lot of benefits. There’s a continuity of service. There’s a team of professionals who know your property from the moment you buy it (even before that). And, there’s less movement as you transition from looking for a property to buying a property to renting out that property.
At Prestige Real Estate & Property Management, we feel like we’re able to serve our property owners and investors better when we’re working with them from the very beginning. We can jump in and help you at any point in your investment journey. Even if you’re managing your own investment property and you run into a problem, you can call us for help and we’ll be there. But, when you want to really leverage our experience and resources, you can work with us when you decide you want to invest. We will help you earn more and spend less on your investment property from the very beginning. When we can provide advice and service before you even decide on a rental property, we’re even more well-equipped to manage it for you.
There are a lot of options for you when you’re thinking about hiring a real estate agent and working with a property management company. We’ve covered the roles of each type of professional, and we’ve shared our advice for partnering with a company that can provide both services.
Consider us when you’re ready to invest. We’d love to hear your investment goals and explain how we can help. Please contact us at Prestige Real Estate & Property Management. We manage homes in Sonoma County, including Santa Rosa, Windsor, Sebastopol, Petaluma, and Rohnert Park.
