Investing from outside of Chicago allows you to participate in a lucrative, competitive, and fast-moving real estate market without actually living here. There are a lot of opportunities in Chicago; we're a diverse market with a lot of potential. Rents are high, and so is demand, offering real estate investors a great path towards recurring and consistent income as well as long term returns.
While technology has made it easier than ever to invest from any place in the world, it’s still important that you have a local Chicago property management expert to help you navigate the market, the rules and laws, and the shifting demands of tenants.
We’re talking today about how to have a stress-free and profitable investment experience when you own Chicago rental property but don’t live in the city.
Your secret weapon is this: smart property management. Let’s talk about what that looks like.
What Do You Know About the Chicago Rental Market?
You know enough to understand it’s a good idea to invest in real estate here.
But, how close are you to the data that speaks to rental values, appreciation, vacancy rates? How well do you know the population trends and whether the economy is growing and shrinking?
Before you invest in Chicago, you have to get to know where the city stands in terms of real estate and rentals. Your property manager is the best resource for this information. We’re collecting data daily. Our insights and analytics help investors from outside of the area to understand and navigate the landscape.
In August, 2024, there are more than 8,700 rental units available in Chicago. The median rental price is hovering around $2,000 a month. We’re about a hundred dollars higher, on average, than last year.
Property values are also high. If you’re looking to acquire a unit or a building, you’ll need to know what the asking prices are, what the location looks like, and what kind of tenants you’re likely to attract with a specific property.
For a stress-free investment experience, you need to know some of the basics about the Chicago market before you invest. You’ll need to know whether the properties and the trajectory here aligns with your budget and your investment goals. Spend some time educating yourself, and lean on your local property management partner in Chicago to drill into the details and provide the best data.
Choosing Your Chicago Property Manager
As an out-of-state investor, you need to make a strategic choice when it comes to who your property manager will be. If you’ve not yet invested in a property, you’ll want someone who is also a broker, who can handle the entire process for you, from acquisition to leasing to management to maintenance. If you already own properties in Chicago, look for someone who can contribute to higher earnings and a better approach to tenant accountability and service.
As Chicago property managers who specialize in working with investors from outside of the area, here are the important things that contribute to success in our market. Make sure your management partner can provide these elements, ensuring a successful investment experience.
1. Local Market Expertise
The first thing an out-of-state investor should look for in a Chicago property manager is fairly obvious; you’re looking for a deep understanding of the local market. You don’t want a national management company that drops in on various cities across the country. You want a local, on-the-ground expert who has personal knowledge of the properties, the tenants, and the movements of the local market. This includes knowledge of neighborhood trends, rental price dynamics, and legal regulations. A manager with local expertise can not only help set competitive rental rates but also provide insights into future market conditions that could affect your investment.
2. Proven Track Record of Success
A good reputation will tell you a lot about your potential property manager. Ask around. Read reviews. Experience speaks volumes. Investigate the property manager’s experience by talking about challenges they’ve overcome for other out-of-state investors. Check out their website and social sites; are there resources available? Look for evidence of successful management, such as high occupancy rates, low tenant turnover, and effective maintenance practices. This information will give you a clearer picture of their capability to manage your investment efficiently.
3. Communication Skills
Effective and responsive communication is essential for managing a property from afar. A reliable property manager should offer regular updates and be readily available to answer any queries. Discuss with them how they plan to keep you informed about your property's status and ensure their communication style aligns with your expectations. Everyone has different communication styles, so it’s important to establish how often you’ll hear from your property manager and what kind of information will be communicated. Some of our owners only want to hear from us if something is wrong. Others want to have a conversation every time we’re placing a tenant, considering preventative maintenance, choosing a snow removal vendor, or offering a lease renewal agreement.
4. Comprehensive Services
You don’t want to be contracting with a dozen different companies to get every part of your investment managed. Look for a professional who can do it all. Consider the range of services the property manager offers. Ideally, they should handle various tasks such as marketing the property, screening tenants, collecting rent, coordinating maintenance, and managing evictions if necessary. Having a single point of contact for all these services can simplify management and reduce the risk of oversight. Even better is when you find a local expert who can help you buy and sell, too.
5. Strong Network of Vendors
A local Chicago property manager with a robust network of trusted vendors, service professionals, and contractors can save you time and money when repairs and upgrades are needed. They should be able to efficiently handle maintenance and repairs, ensuring quality work at reasonable prices. Inquire about their relationships with local service providers and how they manage emergencies or unexpected repairs.
6. Technological Proficiency
An investment in good property management technology is essential. This is how you will stay connected with your Chicago investments, so leveraging technology can significantly enhance property management efficiency. Look for property managers who use modern tools for tasks such as online rent payments, maintenance requests, and tenant screenings. These technologies improve transparency and convenience for both you and your tenants. You’ll want to know you have a portal, where you can access financial statements and accounting reports. You may want to review maintenance invoices or send messages across different time zones. Make sure this is available to you before you partner with a management company. It shouldn’t be up to you to provide the necessary technology. This is why you hire us.
7. Transparent Fees and Contracts
Finally, ensure there is clarity regarding fees and contractual obligations. Understand how the property manager structures their fees—whether it's a flat rate or a percentage of the rent—and what services are included. Be wary of hidden charges and ensure all terms are spelled out in a contract to avoid conflicts down the line. Every property manager has their own ways of collecting fees, and we’re not here to debate whether there’s one right way or a number of good ways to do it. Our message is simply this: insist on transparency. Make sure you understand exactly what you’re paying for. Those dramatically low management fees may seem attractive, but they also may mean that you’re paying separately for services that would otherwise have been included.
A competent property manager acts as your eyes and ears on the ground, handling day-to-day operations and ensuring your investment remains profitable. Their efficiency directly impacts tenant satisfaction and, ultimately, your bottom line. Choosing the wrong manager could result in increased vacancies, higher maintenance costs, and significant stress.
Eliminating Stress as an Out-of-State Investor
Real estate investing is bound to come with a bit of stress. The market is competitive, proper financing requires strategy and creativity, and you have to have a solid understanding of your own investment goals and how to position yourself and your property in a shifting market.
The management process, however, does not have to be stressful.
Smart investors know that with the right property management partner, you’ll have a profitable and pleasant experience as your investments are leased, managed, and maintained. When you’re investing from outside of Chicago, your property manager is your best asset when it comes to earning money and avoiding risk. A good management team will protect the condition and the value of your property, your building, and your entire portfolio.
We’re a local Chicago property management team that works with a lot of investors from outside of the city, outside of the state, and even outside of the country. If you’d like to talk more about how we can create a stress-free investment experience for you in the city that we love, we’d be happy to talk with you about that.
When you’re ready to invest in Chicago real estate, make sure you’re working with the most effective, talented, and knowledgeable team in Chicago property management. Contact us at Paragon Property Management Group.
