Improving Your Property Management Portfolio

4 Ways To Improve Your Property Management Portfolio

When it comes to property management, many investors fail to increase their property portfolio, either because they bought the wrong properties, they tried doing it on their own, they don’t know how to manage their property portfolio or because of fear and poor financial structures. But growing your property management portfolio isn’t that hard at all. This is what you just need to do:

1. Manage your cash flow

Many investors due to weak income, high maintenance costs, low tax depreciation benefits and poor level of growth with each of their current properties; lack money to reinvest. This leads them to pick up huge loans which they can’t afford to service repayments.

But the answer to this is simple; create a positive cash flow! How? Well, apart from accounting for your expenses and revenue, purchasing the right properties on the market can increase your cash flow, service your loans and enable you to afford more property.

2. Improve the value of your properties

Investors often face the dilemma between investing for growth in their property or for cash flow. But from an expert view; why not go for both? After all, your property management portfolio will benefit from that.

That new property you are eyeing can make a big difference in your cash flow, so go for it! Make minor renovations and improvements design-wise so the property reaches the market standards. By increasing your property’s value, you’ll be able to increase your rental income, equity and savings, thereby increasing the speed at which you can purchase more properties.

3. Check your portfolio

Purchasing new property is the best way to improving your property management portfolio. But how well you manage that property can make the difference between buying more property in the future and a frustrating and costly property ownership experience.

Hiring a reputable property manager who understands the area/market and lives close to your property is the way to go. The property manager should help keep your property’s value and rental income up, by keeping accurate cash flow, taking care of your investment, choosing tenants wisely and ensuring they’re paying on time. Don’t hesitate to sack a horrible, inefficient manager who costs you money. 4rooms Property – property management in Adelaide have a team of experienced, and well-trained property managers. The Adelaide community is raving about the 4rooms Property group. Last week they even did a tweet to the 4rooms Twitter profile applauding them for their efforts.

4. Have an investment strategy

Buying any property and putting tenants will make you money, but how sure are you that you’ll get full returns from your investment? Not every property is a good investment, in fact buying property is like gambling, and probably one or two properties will hit the jackpot, literally.

Before purchasing more property, have a good strategy in hand and an end-goal in mind. The strategy serves as a guide on how you’ll make money from the property. What’s more, it makes buying the best property much easier and keeps you focused on your property management portfolio. This saves you time wasted on shopping around for property and helps you grow your property portfolio quicker.

One thing is for sure; buying more property gives you more financial freedom. You just need to be smart, invest wisely, be persistent and of course put these tips into action.

Tenant Management

Being a landlord can be exciting, but that is not always an easy task. If you are lucky and all your tenants are good people, you have scored a jackpot. It is not always the case. A standard practice in property management is a regular household inspection. There are a couple of reasons it is important to inspect properties and a couple of things to take into account.

Landlords and tenants are both protected under the law. If you are a landlord, inspecting the property is your duty. You need to give at least 24 hours’ notice before you do it, and it must happen at a reasonable hour. Take Care of the Property Inspections are necessary to make sure that your tenants have good living conditions. Even little things can quickly turn into big problems. For example, a leaking pipe can turn into a severe flood if it doesn’t get fixed.

Health hazards like damp and mould need to be dealt with as soon as possible. A broken window might be a small thing. Your tenants will appreciate little things getting fixed too. It might be an investment. But it will save you money in the long run.

Sometimes tenants don’t report problems and then blame the landlord for the damage. If you inspect your properties, you can make sure nothing like that can happen. But, inspection is essential to check on the tenants as well You can check if they are fulfilling their side of the tenancy agreement. Even if residents seem good people, you need to check that there is no illegal activity. Some of the best with paying the rent are the worst when it comes to, for example, growing marijuana in the house or flat.

Protect yourself if you are renting out a furnished property, make an inventory of everything that is on the property. It should be in two copies the same as the tenancy agreement. This way you and your tenant can sign it and each has a copy for reference. While performing the inspection check everything you mentioned in the tenancy agreement. Look at the garden if tenants are looking after it.

Look at how clean the place is and notify the tenant if you think they need to do a better job. Your relationship with your tenant will start with good and upfront communication. It will make it better for both sides, and your tenants will want to rent in the long term. It is easier to have the same tenants for a long time rather than lose time and money looking for new ones.