Did you know that 61% of Americans own stock? If you’re looking for another way to expand your portfolio, consider managing an investment property. You’ll get the potential for significant supplemental income.
Read on to learn how to succeed in investment property management!
Find the Right Rental Property
When it comes to property management tips, a big one is to choose the right rental house. Consider your budget. And consider whether you want a single-family home or a multi-unit dwelling.
But also consider other items, like location and condition. For instance, you could reap the benefits of putting some sweat equity into a home that needs help. But do you have the skills to renovate a place or the time to do it?
You may want to go with a rental property that only requires cosmetic updates. Or you might want one that is completely ready to go. Then you can start renting it right away.
Additionally, factor in location. Buying an investment property in an in-demand part of town means you won’t have long stretches where it is vacant.
Understand Your Responsibilities
As a property manager, you will need to take a hands-on approach to your rental. This includes performing preventative maintenance and tending to landscaping. You’ll also need to respond to concerns from tenants to maintain proper living conditions.
Plan on budgeting for repairs. At the same time, know that you might have tenants who fail to pay their leases. Until those issues are resolved, you’ll need to have the cash to cover expenses.
Streamline Management Processes
Being a property manager requires coordinating lots of moving parts. It’s not always easy, especially if you have another job. Use property management software to save the day.
Software can track payments and screen tenants. It also can be used to intake maintenance requests from tenants. Best of all, you can access everything from your phone or laptop.
Use software like Appfolio to keep detailed reports about your property. What is Appfolio? Turn to this management software to make your life easier!
Keep Your Eye on the Future
Finally, don’t forget to consider your long-term strategy. Yes, managing one rental property can put money in your pockets. But you increase your income by re-investing those profits into new properties.
Look for ways to expand your portfolio. Do a market analysis to see what renters in your area want to see in a property. And check which parts of town are growing the most.
Consider outsourcing some of your responsibilities. It may be helpful to hire a property manager. That way, you can focus on finding new properties to acquire and building your investment portfolio.
Succeed in Investment Property Management
When you understand the responsibilities of investment property management, you can be successful. Be aware of your budget and choose properties that meet regional rental preferences. And keep your eye on future purchases to expand your offerings and make more money.
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