A strong real estate investment portfolio is often a mix of different property types in different markets representing different asset classes. In the Philadelphia rental market, asset class is important with rental properties because it has an impact on how much rent you earn and how your property is valued overall. If you’re looking to increase your ROI, take the necessary steps to increase the condition and desirability of your home. A higher asset class means better tenants, more rent, and a major jump in appreciation.
Transitioning Asset Classes: Timeline for Philadelphia Investment Homes
Investors who want to transition into a higher asset class with their rental properties can expect the process to take between three and four months, especially if you’re working with a professional and experienced Philadelphia property management company. Trying to manage this transition on your own is likely to lead you into murky areas and result in delays or missteps, unless you have your own experience in the market and the asset class you’re trying to reach.
Reach out to partners who can help you map out the process, budget for upgrades, and focus on the fast renting of your property to highly qualified tenants.
Location will also impact how quickly you transition and whether you start to see the higher returns you’re expecting with major upgrades and improvements. If you’re renting out a property in an area that is seeing higher rental values and home prices, you’ll have faster success. You can expect higher rents within months or even weeks.
The BRRR Strategy and Why It Works
At TCS Management, we have worked with thousands of rental homes and helped owners transition from a lower asset class to a higher and more profitable class. We focus on Buying, Renovating, Renting, and Releasing or BRRR. This allows our investors to make more money on the rental properties they identify and acquire. It leads to higher rents, less vacancy, better tenants, and higher profits when it’s time to sell the asset and move on or exchange it for a new purchase.
Renovations and Rehabs to Update Your Asset Class
The key is to upgrade and update your property quickly. That means you’ll need access to a dedicated team of vendors and contractors who are willing to give you the time and the resources you need to make this happen as fast as possible. At TCS Management, we take care of this efficiently. We have in-house contractors through an affiliate company who are completely dedicated to our properties and our investors’ portfolios of properties. You won’t face the scheduling frustrations or the lack of accountability that you might if you were outsourcing these jobs.
We have done everything from a complete gut and remodel to basic upgrades and renovations with our in-house company. The result is more money for our investors, and a more competitive property in the Philadelphia rental market.
If you’re interested in transitioning your asset class, either with your current portfolio or properties you’re thinking of acquiring, contact us at TCS Management. We’ll make sure your process is simple and successful.
TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Cherry Hill, NJ, Wilmington, Delaware and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
