WHAT DO SAN FRANCISCO INVESTORS NEED TO KNOW ABOUT VIRTUAL REAL ESTATE INVESTING? San Francisco Property Management Advice
Virtual real estate investing is one of the latest trends that allows investors to buy and hold properties in different markets and without the time-consuming in-person legwork that was once required when you wanted to buy a property. Technology has improved what investors can do and how they do it.
You can invest in San Francisco rental real estate from anywhere in the world. You don’t have to live here to have a successful investment experience, and if you’re working with a local team of experts, you can earn just as much money as you would if you lived in the neighborhood yourself.
SAN FRANCISCO’S RENTAL MARKET IS UNIQUE
While investing virtually in real estate isn’t terribly complex thanks to the innovative advances technology has made, there are still some complications. San Francisco’s rental market, for example, isn’t like other markets in the country. A
local property management presence is critical. Here’s what you need to know.
1. GET TO KNOW THE MARKET - VIRTUALLY
You don’t have to be in San Francisco to invest here, but you do need to have a sense of the rental values, the available and competing properties, and the tenant pool. This is part of the due diligence you would conduct on an investment property in any market. San Francisco has high rents, a competitive market, and a lot of well-qualified tenants with high demands. Be prepared by talking to local real estate experts who can give you an idea of what to expect when you buy here, rent to tenants here, and continue growing your portfolio in San Francisco.
Establish some metrics so you know what a successful
investment property will look like. Investigate tenant turnover and rental property inventory. You’ll want to know how often rents increase and how rent control laws impact properties and what vacancy times look like. Talk to a San Francisco property manager so you can leverage reliable and accurate data as well as local expertise.
2. FIND THE RIGHT INVESTMENTS
When you’re investing virtually, you can’t drive by any of the potential properties that you’ll buy and you can’t knock on the walls or walk through the unit.
Finding the right investment opportunities will require some online searching, as well as great relationships and a solid network of professional helpers.
This can easily be done virtually, thanks to the online platforms and tools that are available now to out-of-state investors. Build a team of local experts so you have people you can rely on to talk through a potential acquisition. Someone will need to show you the property you may buy, even if it’s a virtual showing. You’ll want to see pictures and videos. You’ll want to review comps and demographics.
3. RENTAL LAWS IN SAN FRANCISCO AND STATEWIDE
Investing in San Francisco real estate can be done virtually, but you have to understand that the laws here are different than in many other parts of the country. We have local as well as statewide rent control, just cause eviction requirements, and protections for Section 8 tenants during the screening and marketing process. Security deposit requirements are strict and habitability is scrutinized.
None of these rules and requirements make it difficult to own
rental property here, but it does highlight the need for local property managers who understand the laws and can keep you in compliance.
Look for Virtual Investment Expertise
We work with a number of out-of-state investors. We also work with buyers who aren’t planning to visit San Francisco or explore the market in-person. With the real estate landscape as competitive as it is right now, there’s no surprise that investors are eager to save time and money by investing virtually.
SAN FRANCISCO PROPERTY MANAGEMENT AND VIRTUAL INVESTING
If you’re interested in virtual real estate investments in San Francisco, we can help. Not only will we help you identify great investment properties, we’ll also be your local resources on the ground - right here in the city. We’ve been doing this for more than 30 years at BanCal Property Management. We can make sure you choose the right property in San Francisco, and we’ll manage it expertly.
To hear more about our leasing and management services, please
contact us at BanCal Property Management. We also welcome your comments, questions, and suggestions for topics you want to learn about, so please share those too. Let us know what you’d like to hear about when it comes to effectively managing a rental property in San Francisco.
