A career in real estate investing can be an extremely interesting and profitable career. Unfortunately, it can also be one that is time-consuming and easily bogged down by the details involved in the day-to-day management of the properties. If you are a new real estate investor or someone who has been investing for awhile but still struggling with managing the workload, the following pointers can help you streamline your business and increase your success.
Cut future maintenance by making the right initial investments
Preventing future property maintenance issues that are likely to be both expensive and time-consuming begins at the time of purchase. To do this, have any properties you are considering professionally inspected and evaluated by qualified inspectors and contractors before buying to determine if they are structurally sound. Taking this action will help ensure that each investment you make will be financially feasible to maintain during your ownership.
Renovate with ease of maintenance in mind
Renovations are customary, especially in the residential real estate industry. But it is important to note that the materials and designs chosen during the renovation process can directly affect the amount of future maintenance the investor will have to do. Investors should consider choosing extremely durable materials and easy to maintain design elements when renovating. An example of this is to consider installing more durable laminate or tile in heavy traffic areas, instead of more fragile carpeting or more easily scratched hardwood flooring.
Set rental policies that help preserve property condition
Pets, while popular with many tenants, are a leading cause of property damage in rental homes and apartments. In addition to issues with pet odors and stains, pets can scratch walls and doors, snag carpeting or drapes, and inflict chewing damage on wood and other surfaces.
Since this type of damage requires time and expense to repair, investors may want to consider excluding pets from their rental agreements entirely or limiting the number of units where pets are allowed. In addition, landlords should also consider using hefty pet deposits to protect their investment and/or limiting the number, size, and type of pets allowed.
Institute a careful tenant screening process
When a property is sound and well-maintained overall, most landlords will find that the level of maintenance needed for each property is directly influenced by the tenant who lives there. To make sure that each of your properties is rented by tenants with verifiable histories of paying rent on time and carefully maintaining past rental homes, investors will need to utilize a careful tenant screening process.
Since selecting the best tenants is one of the most time-consuming parts of managing residential real estate, hiring a professional property manager is an excellent strategy to handle this need. In addition to screening potential tenants, property management companies also save busy investors time by helping to market their rentals, collect and disburse rental payments, handle calls from tenants, and deal with repair and maintenance issues as they arise.