The US has the largest real estate market share in the world. The global pandemic did nothing to dampen this and the market has remained buoyant ever since. In this climate, how do you manage to grow and maintain your portfolio?
While there is no one size fits all method, some tips are essential. Read on as we tell you how to grow your property portfolio in 5 easy steps.
1. Portfolio Property Management
Many people would recommend a portfolio property management company to assist as you grow. When you have so many portfolio properties you can't fit them in toy our schedule, it becomes the only way to ensure they are well maintained. However, it does not just have to be for those with large portfolios.
When you begin investing in real estate, you will probably have other jobs and time commitments. Rental properties in particular need a lot of attention and it can be easier if you have more to maintain and do it full time rather than juggle it with another job. A property management company will be added expenditure, but you will recoup this value in time.
2. Use Income to Reinvest
As a real estate investor, all of your income from property should go back into reinvestment. Don't use it for transient items like new cars or expensive holidays. Set it aside for a time when you have vacant properties, need repairs, or even for buying another place.
3. Screen Tenants
When renting out, maximizing income means reducing vacancies to a minimum. The flip side is that if you get the wrong tenants, it can cost in time and money. You may end up with repairs and lengthy legal battles to pay for.
Avoid this problem by making sure you fully screen tenants. All tenants should have references from previous properties. You can also ask for co-signers when it comes to signing agreements.
All of this will take time but it will be worth it. This is also a task that a property management company would be willing to take over for you.
4. Market the Property Well
Any great real estate investor knows the value of quality marketing. If no one knows your property exists, no one will come to rent it. By having great marketing you increase the pool of potential candidates, meaning you can screen for the best and most appropriate ones.
Marketing successfully is not an easy task. It involves everything from staging the home and taking great pictures, to placing it on the correct websites. Expect to budget accordingly.
5. Invest in Maintenance
Don't just assume that income comes from rental when you invest in property. You will be making money on appreciation and for this reason, it pays to look after your investment. This can be done through quality, regular maintenance using high-quality tradesmen and products.
Growing Your Property Portfolio
Take time to grow your property portfolio. Plan for the future and keep money aside for repairs or future investment. Finally, try to think of a method to manage your properties.
Pristine Property Management should be your first stop. We can take the burden from you, arranging everything from marketing to tenant screening. Contact us today and let us begin managing your property portfolio.