Taking care of your property and your tenants.
As you start acquiring properties, you are going to have to manage them. Property Management is more than just fixing toilets. It’s about making money with your investments.
Property management is making sure your properties are generating a positive cash flow. How do you do that? The first thing you need to do is make sure you only rent to good tenants. People that want to rent your property and that plan on taking good care of it.
These people can afford the rent and have enough income to pay the rent and the other utilities associated with the property. Sometimes you will get a bad tenant. When this happens, make sure you replace them as soon as possible. The longer you wait, the more money it will cost you. You will have to know how to advertise and attract new tenants, the right tenants.
You also have to make sure your properties are well maintained. Fix problems as soon as they occur. A problem left unattended can get worse and cost you more in the long run. Also, make sure you budget for eventual larger expenses like new windows and roof repairs. If you let your properties get run down, your tenants will not care and just cause more damage. You may also get a bad reputation as someone people don’t want to rent from.
Keeping good financial and maintenance records is also important. You should know how your property is performing at any time. Is it making money or losing money? What is it currently worth? Is there money set aside for vacancies, major repairs and other miscellaneous items.
Good property management takes the stress out of owning Real Estate Investments.