With a net worth of $28.6 billion, Lee Shau Kee is a shining example of how owning real estate is one of the best ways to build wealth.
While achieving this level of investment prowess is beyond the realm of most investors, a real estate portfolio is still an excellent option for those wanting to earn a passive income.
Real estate asset management is the key to maximizing your investment properties. Keep reading to find out more about what's involved.
Real Estate Asset Management is a Hands-On Job
Asset management goes beyond buying properties, renting them out, and waiting for the money to roll in. There are several ongoing tasks associated with making your portfolio work for you.
These are:
Creating Demand for Your Properties
To attract tenants to your property, you must offer competitive prices in your market. You can achieve this by doing rental comps for your area.
Another way to increase the appeal of your property is by looking at the features of higher-priced homes in the area. Do they have any amenities that you could add to your property?
Home improvements cost a little more at the outset but can ensure long-term gains for investment property owners.
Maintaining Property Values
Bad tenants may damage your property, avoid paying rent, and necessitate costly eviction proceedings. It can take years to recoup these losses.
Tenant screening is one way to ensure you get reliable, responsible tenants for your property. It's best to get professional assistance to avoid breaking local tenant screening laws.
Even with the best tenants in place, landlords still have many responsibilities for maintaining their properties. Timely repairs will help you avoid damage to your home.
Routine maintenance helps prevent unnecessary repairs, keeps your tenants happy, and protects the value of your investment.
Maximizing Income
It makes good sense to do everything you can to keep your tenants in place. Vacancies mean lost income for investment property owners.
Regular maintenance is one way to keep them happy and inclined to renew their leases. It's also important to uphold transparent communications and build relationships through regular property inspections.
Consider value-added upgrades to the property. Energy-saving or solar-powered appliances are good choices.
An online tenant portal will help you stay on top of maintenance requests, streamline rental payments, and maintain open lines of communication.
It's worth offering incentives for lease renewals. Some ideas include:
- A few months of discounted rent
- A free gym membership
- Vouchers from local businesses
Once a tenant has proven their worth, you should consider offering them a longer lease.
Professional Property Management Helps You Thrive
If you're unable to devote a considerable amount of time to real estate asset management, it's best to get professional help. An experienced property manager can assist you with every step of your real estate journey.
They can advise you about desirable investments, help you place good tenants, and assist with the day-to-day management of your investment properties.
Get in touch with PMI Foothills today to discuss the best options for your real estate investment portfolio.
