The key to successful property management is to treat your investment properties as a business. However, what does this really mean? And how can this advice help you better manage your assets? Here are four simple ways to properly manage your investments.
#1 Don’t be emotionally invested
It’s understandable to become emotional when purchasing your own home. However, it’s important to remember that you aren’t buying for yourself. Instead, think of your ideal tenant and whether they’d want to live there. By knowing their likes and dislikes, you’re more likely to earn maximum return on your rental.
#2 Keep your property pristine
Are you searching for a way to find the best tenant while ensuring your property retains long-term value? The secret is proper maintenance. Today, tenants are looking for homes in good condition. As such, they are reluctant to pay top dollar for poorly presented homes. By simply installing new appliances, applying a fresh coat of paint or staying on top of landscaping, you’re sure to have your pick of potential tenants. They’re more likely to pay rent on time and treat your property as they would their own home.
#3 Conduct rent reviews
For an increased return on investment, always be aware of where the rental market’s heading. By performing annual rent reviews, you will achieve the best price and higher returns on your investment. By raising your rent to meet current market standards, you can decrease the divide between rising mortgage repayments and the contribution made by your renter. Keep in mind, though, raising rent too highly can alienate your tenant and they may part ways with you.
#4 Don’t get personal
It’s a great feeling if you get along with your tenants, right? Be careful, because becoming too friendly can create a host of problems. Firstly, there’s an increased risk of not receiving rent on time. The reason being, tenants may feel they can take advantage of your friendship. Secondly, if you drop in on them too often, tenants may feel you’re breaching their right to quietly enjoy their rental property.
For more tips on successful property management, call or email House Estate Agents today.