You’ve likely heard it again and again: Real estate is one of the best investments you can make. Perhaps you’re considering going a step further by investing in multifamily housing. How exactly do you start a townhouse or apartment rental business, and how do you keep it profitable for years to come?
To learn how to build a rental property business, look no further than CTG Real Estate Services. Our professionals offer unique turnkey solutions for prospective buyers like you — meaning we can guide you through more than just finding the right space for your townhouse or apartment rental business. Our connections with industry leaders in construction, design, property and facility management and more can help you get your business off on the right foot.
Our team can always answer any personal questions you have when you schedule a consult with us. But to aid you in starting an apartment rental business or a townhouse rental business, we’ve laid out some of the basic steps below.
1. Determine Your Asset Criteria.
Before you can even begin searching for a space for your townhouse or apartment business plan, you must determine your asset criteria. These are the aspects that your real estate professional will use to locate the perfect space for starting an apartment rental business or townhouse rental business. They are also important aspects for your townhouse or apartment business plan as a whole.
Ask yourself these questions to build your asset criteria:
- Do I want to own an apartment complex or townhouse complex?
- How many units do I want to own?
- What location do I desire, and how will it play into the marketability of my rentals?
- Do I want to manage my properties myself, or hire a property management company?
- What is my budget for purchase and potential renovations?
- What is my desired monthly rent rate?
- What is my budget for monthly upkeep and maintenance?
- What is my capitalization rate?
- Who do I want my prospective tenants to be?
While a real estate professional like CTG Real Estate Services can help you identify the specifics of your asset criteria, you will need to know your own basic goals and needs before moving forward with this process.
2. Find Your Space.
Once you have identified your asset criteria, you can contact CTG Real Estate Services to begin looking for a multifamily property that fits your needs.
CTG Real Estate Services offers the benefit of an ever-expanding network of sellers, which means more potential properties for prospective buyers like yourself. CEO and founder Chris Gardner has access to thousands of off-market properties through his unique partnerships. These spaces are available to his clients at a lower cost and with less competition than other properties.
When you work with CTG Real Estate Services, your needs will always come first. Our professionals focus on creating long-lasting genuine partnerships with clients, and they will work closely with you to find the space that is perfect for you. We will discuss your asset criteria in depth with you, explain their potential effect on how to start your own apartment complex or townhouse complex, and then start locating potential properties for your needs.
You will receive guidance through every step of this process. When you are ready to purchase a site, we will help you sign a sale contract with an appropriate real estate attorney.
But, unlike other multifamily real estate companies, our services don’t end with the signing of a contract. Our team can guide you through not only how to purchase an apartment complex but also how to run an apartment complex moving forward — including these steps listed below.
3. Complete Renovations and Upgrades.
When you purchase a space for your apartment or townhouse rental business, you will already know what renovations need to be done to maximize your tenants’ monthly rent. But, how do you get there?
This is where construction management professionals come into play. They can assist you through all the steps required in completing renovations, including the design and building out of your desired space. Construction projects tend to have a continuous need for alterations, which is why an experienced manager will be key to ensuring your townhouse or apartment business plan runs on budget and on time.
What renovations or upgrades you need to make should be considered before purchasing a complex. Multifamily property owners should consider things like in-house and surrounding amenities for clients, design of units and the landscape and more. Proper research into your desired demographics is a big part of what renovations and upgrades you make.
4. Find Appropriate Vendors and Management.
This step of how to build a rental property business goes hand-in-hand with construction management. In order to put all of your new amenities into place — and ensure their continued productivity — you will need experienced vendors.
Your vendors may include:
- General contractor
- Utilities providers
- Internet providers
- Complex managers
- Maintenance and repair teams
- And more
CTG Real Estate Services can guide you through the process of hiring the right vendors and management to ensure the success of your new property. We know that legally contracting vendors can be confusing. Let our professionals assist you through completing requests for proposals, evaluating vendors and finalizing hiring contracts.
One of the most important professionals involved in starting an apartment real estate business is your property management company. This is the group that your tenants will interact with when they plan to lease a unit and communicate with once they are a resident. Property management companies can make or break an apartment complex. Chris Gardner knows what to look for in property manager and can help you make a selection that will aid in your complex’s continued profit.
5. Create Plans for the Future.
These are long-term plans, designed to protect you and your tenants from any unexpected surprises down the road. What are your plans for emergencies or disasters that force your tenants out of their units? Do you know when you will next need to replace your HVAC systems — and are you prepared for that financial cost? Planning for these circumstances and anticipating the replacement of big-ticket items will ensure you can continue to provide the same level of services to your tenants and keep your business profitable.
Our professionals can assist you with these long-term plans and put the protections in place for your peace of mind moving forward.
Starting an apartment rental business or townhouse rental business is a great investment to make. However, make sure you understand how to run an apartment complex or townhome complex before taking this leap; otherwise, you may find yourself in a tight financial situation.
Make the best choice for yourself — work with CTG Real Estate Services when entering the multifamily real estate business. Whatever services you need, we can help you get there.