A slow housing market generally creates more demand for Property Management companies. In today's climate, Sellers have seen their equity shrink while Buyers are facing more stringent borrowing requirements. As a result, more Sellers now lease their homes and more would-be, first-time home buyers are now forced to rent.
Indianapolis, while experiencing less housing problems than coastal cities, has no doubt been affected by the overall housing market. Property Management companies throughout the country and throughout Central Indiana, have received a definite up-tick in business over the past two years. The stream of business comes from two very different sources.
INDIANAPOLIS
Homeowners who can't sell their home
Let's face it... it's a tough market out there for homeowners looking to sell their home. Some homes have been on the market for over a year, while some homeowners haven't even tried to sell their home because they can't afford to bring money to the closing table. The homeowner looks for a good Property Management company to lease and manage their property in hopes that the housing market will return to normal in the next few years. These homes are typically newer and are in subdivisions that have seen heavy pricing pressure over the past few years.
Investors looking for low barriers to entry
Recently, Money Magazine deemed Indianapolis the best place for real estate investors to spend their money, claiming a whopping 300% return on their investment over a 10-year period. We work with some investors but not all. For example... It's no secret that Indianapolis provides investors with extraordinary low barriers to entry. Investors routinely come to Indianapolis, purchase a property for around ,000, spend another ,000 on paint and carpet and rent the home. I consider these purchases to be very bad investments. Generally, these homes will see very little to no appreciation, will need constant maintenance and, because of the areas where they reside, will experience extremely high turnover and even vandalism.
On the other hand, real estate investors who focus on solid neighborhoods and are willing to pay for quality housing are on the right track. While these homes may need some work, they are generally very sound from mechanical and structural standpoints. More importantly, there is a strong demand by Tenants for quality housing in quality areas, so vacancy rates are generally very low. These investors are buying homes at a discounted rate and hope they will achieve large equity gains when the market returns to normal levels.
Indianapolis Property Management Heating Up
Jeremy Tallman serves as the President and Principal Broker for T&H Realty Services, Inc., a full-service residential property management company located in Indianapolis, IN.
T&H Realty Services focuses on the leasing and management of single family homes throughout Central Indiana and is a proud member of the Better Business Bureau along with the National Association of Residential Property Managers (NARPM).
More information about Jeremy Tallman and T&H Realty Services can be found at http://www.threaltyinc.com
INDIANAPOLIS
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