Melissa Riley is the property management director for Westcott Properties, a Providence-based real estate company. She also is a 12-year real estate agent who represents both buyers and sellers in the Rhode Island market.
As property management director, she oversees the company’s management of 30 to 40 multifamily properties, primarily in the West Side neighborhood of Providence. A graduate of the University of Rhode Island, she spoke to the Providence Business News this week about the current real estate market.
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PBN: One of your titles is property management director. What does that entail?
RILEY: That role has evolved as the market has changed. When we had a very high inventory of bank-owned properties, I would handle them from cradle to grave, from taking over the property, relocating the tenants and follow through to the closing, with everything that comes with property management and preservation, from lawn cutting to emergency services. The [bank] corporations are seller-clients. Property management has evolved. As the inventory of bank-owned properties got smaller and smaller, I managed a lot of properties we own in our neighborhood or manage for institutional investors.
PBN: Many people are now looking to buy properties. What advice do you give someone trying to enter this market for the first time?
RILEY: The first advice is to be prepared. Don’t just start looking at homes without being pre-qualified. Get your finances handled first, so when you do find a house you love, you’re prepared to make an offer right away. I never regretted a property I purchased. There is nothing like owning the property you really want. If you would be upset that someone else bought that property, you need to bid really well so that you get it.
PBN: Occasionally I see a listing that says the sale is contingent on the seller finding suitable housing for themselves. Is this a wise move?
RILEY: On the seller’s side, it’s not the best thing, because it limits your window of buyers to people who have flexibility in when they move. Some people really need to move, and they really need set dates. If you are a seller who is slowly relocating, you’re limiting your window of buyers.
PBN: How has the 2018 market differed so far from the 2017 market?
RILEY: The inventory is a little lower and the prices are a little higher. It’s great if you are a seller. The people who are struggling right now are the investors who flip houses for a living. The owner-occupants are very aggressive and they’re getting really savvy with their financing. They’re getting $2,000 or $3,000 renovation loans. And they’re able to compete with the cash buyers.
Investors are the ones struggling a bit right now because the inventory is low, and the prices are high and it’s difficult for them to obtain something to renovate and then resell. Investors are having real difficulty acquiring property right now. It’s not cheap. The profit margins are lower than ever before. You have some guys who want to come in and make $100,000 profit on a deal, and they don’t want to do any work. It’s not happening.
PBN: What is the market this year for multifamily?
RILEY: If you are an owner-occupant, it’s still a great market. It’s the smartest move, to buy a multifamily and be able to live in one unit and collect rent in the other. As opposed to buying a single-family, when you buy a multi, you have someone else to help with your bills. You have rents coming in and it really offsets the cost of living.
Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.
