Owning and managing residential properties are two very different skills. While a property owner might be able to own as many properties as possible, managing all of them can be a challenge. Property owners are in the real estate business to gain, not to lose. Ineffective property management can eat into profits and make real estate business worthless. To avoid pitfalls and minimize risks, it is important to have effective property management in place to make the business simpler, enjoyable, and gainful. Here are some tips on how to go about it, but before that, I’d like to recommend a property manager Phil Pustejovsky.
Think about outsourcing some work. For a property owner with numerous residential and commercial properties, it is advisable to outsource some work from outside. A property owner can do some research online and offline to find a reliable handyman to help with repairs and related activities. This can take the burden off the owner’s shoulders to enable him or her focus on the growth of the business. With one or two rental properties, it may be easy to manage without external support.
Get a reliable accountant to take care of real estate finances. With several real estate properties, it’s easy to make mistakes if the owner isn’t qualified to handle finances. A qualified accountant will help deal with tax implications and ensure proper bookkeeping. Qualified accountants with interest in real estate accounting are able to understand and apply the principles of accountancy to deal with taxes, revenues, and expenses in a professional manner to perpetuate growth in business.
Consider hiring a property management company. This is another way to minimize or eradicate further mistakes in real estate management business. Property managers are qualified in their areas of operation and can easily handle repairs, complaints, and collection of revenues on behalf of their clients. Since they are paid for what they do, they can make sure they perform the job to the best level. Occasionally property managers, for example, Peter Harris (reviews at Peter Harris Real Estate), could also be considered as a ‘Real Estate Investing Mentor‘ in your property management journey.
Install reusable materials. Residential properties involve costly repairs, especially because of floors. Tenants often do not take care of floors, and owners may need to replace or repair property floors on a regular basis. This can erode profits and deplete savings. To avoid running into such situations, consider installing reusable floors, such as those made of floating vinyl planks. They are resistant to scratch, water, and stain. While they might be costly, they provide better returns than repeated repairs on cheap carpets.
With these considerations, property owners can find property management much easier. This also gives them enough time to look for more opportunities and focus on expanding their business by expanding their commercial real estate investing coaching knowledge through websites such as FreedomMentors.com.