Learn why Hillsboro,OR is a great place to own a rental property, and consider the advantages of hiring a property manager that is knowledgeable about local laws and regulations.
Hillsboro, OR is on the west side of Portland’s downtown area and hosts several high-tech companies such as Intel. This is how it gets the nickname of “Silicon Forest”. The second major company located there is Nike.
Hillsboro is a popular place to live because it offers:
- Good Industry
- High paying jobs
- Quality Schools
- Easy highway access
Close to public transportation
There is a tram that goes from Hillsboro, into downtown Portland, and continues to the airport. People in the Portland area like to bike and tend to be 1 car families, so the convenience to public transportation is a real plus for many.
Property in the area is going to be pricey compared to other areas
You will want to make sure you have enough of a down payment that your cash flow is hopefully a little on the positive side. If your goal is to get some appreciation out of the property and you understand that cash flow may be a little negative,this is still a choice area for investing. Just make sure this works within your strategy and you go into the deal aware of it.
Proximity to the Nike or Intel campuses are a plus
If you are withing 15 minutes of these large corporations’campuses, you are going to be an attractive living option for the employees that are working in the area for only a year or two and want to rent.
Because the industry in the area is so strong and the schools are highly rated, your risk is really reduced. Even in a down market,that area is going to hold its value well. Looking at long term, buying in the Hillsboro, OR area is going to be a low risk investment with some upside potential.
Before you invest in a property, make sure you do your due diligence
- Projecting rents
- Home inspection
- Cash flow analysis
- No mold
Doing your research and running the numbers for a realistic view will ensure you are investing in a property and know what you can expect to get from it.
Self Management vs Property Management in Hillsboro, OR
Smaller investors tend to wrestle with the choice of saving money by managing a property themselves versus hiring a property management company.
Pros of self-managing:
Vacancy risk is low
The Hillsboro area as well as all of Oregon has a housing shortage, so you should be able to rent your property quickly.
Quality Renters in the area
Due to the industry in the area offering high paying jobs, you are going to have a lot of quality renters to choose from.
Cons of self-managing
There are some disadvantages of trying to manage the property yourself, and circumstances that can cost you a lot of money.
Rapidly changing laws that are complex
There are multiple rule books you must comply with as a rental property owner. There are state-wide rent control laws and bills like H.B.2001 that you must follow. Each county has their own set of laws to comply with, and even at the city level you have another set of rules and regulations.Over the last decade, the level of complexity of the laws has changed.
If you do make a mistake and break a law, the penalties are significant. It is often 3 months’ rent plus legal fees. As an owner it is your responsibility to know the law, and you aren’t going to get out of a penalty by claiming “you didn’t know”. Are you prepared to accept that you have made a $10,000 mistake by not knowing the law?
Whether you own just 1 property or 50, the same laws apply to you.
If you are an out-of-state investor or investing isn’t your full-time job, you may find that keeping up with the laws is going to take too much time. What is the best use of your time? It is ok if you want to manage it yourself, just know you are going to need to commit the time necessary to educate yourself on all the laws and regulations.
Put your property in the hands of a professional property manager
Just like hiring a CPA for complicated tax returns, you may find hiring a property management company in Hillsboro is the best option for peace of mind that you are abiding by all the laws. When in a market that is increasingly regulated, investors turn to an experienced,professional property manager to handle the management.
Scott Muzuca, Oregon Portfolio Manager for Mynd, says owners have mentioned that their most important professional relationship is with their property manager because that is where their wealth is. That is quite a compliment to be put on the same level as their CPA or lawyer.
With so many legal entities involved in real estate investing, hiring a professional may be a significant benefit to an investor. Contact Scott at Mynd about our Hillsboro property management. If you want to know what you can expect in rent on your property, we offer a FREE rental analysis.Contact us today.