Despite a challenging real estate market, property investing is still a popular choice for people wanting to put their money to work. Believe it or not, 80% of investors want to purchase one to five homes in 2024. This means money is still entering real estate.
The question is, how can you handle real estate asset management in a way that helps you get a return? Follow the best practices below to make the most of your investments.
Understand Your Market
The first part of getting involved in real estate is buying the right houses in the right market. Whether you plan to flip or hold a property for a rental, you need a marketable property.
Understand the market you enter to avoid this problem. Research what people look for in an area and you'll improve your real estate asset management strategy for the area.
Find and Retain Tenants
If you plan to hold on to your properties, great tenants will be one of the keys to growing your wealth. You don't want your property sitting vacant for extended periods or have tenants who trash everything.
Focus on your tenant retention and screening strategy to ensure you have renters for as many months of the year as possible. This will keep income flowing through the year and minimize expenses.
Focus on Maintenance
Rental property maintenance is something you must get right as a property owner. Your property will experience a lot of wear and tear over the years. If you don't perform maintenance, things will break sooner than expected, resulting in unexpected expenses.
It's normally more cost-effective to focus on maintenance instead of being responsive. Ideally, you can also perform a few rental property upgrades on old appliances and home systems to avoid more severe maintenance problems.
Track Everything
Understanding all your income and expenses will be necessary for making smart decisions. You don't want to make decisions in a vacuum. You want as much information as possible to ensure you're making the most profitable choice.
Track everything you can about your real estate investments. This means all your income and rental property expenses. Run reports on this data to generate forecasts and whatever else you need to stay informed.
Find Help
You don't want to handle your real estate business on your own. Yes, it's true that you can do it and get by. But you also must consider what you aren't great at doing and what you should spend your time on.
Look for property managers and other services to take on some of the load. Focus your energy on higher-level tasks to grow your net worth.
Do Real Estate Asset Management Correctly
Real estate can add a lot of net worth to your portfolio if you handle it the right way. The problem is that many people get into the game without enough research and make bad decisions. Use the best practices in real estate asset management above to optimize your real estate portfolio and grow your wealth.
Are you looking for a partner to help you manage your portfolio? Our services at PMI Richmond allow you to get more done while ensuring tenants have great service and your properties get taken care of. Contact us to speak to an expert about how they can help.
