Getting into property management is a growing trend with the increase in the number of renters in the United States. With that number approaching 50 million, investors have more chances to buy property and earn income.
However, you can't just buy a property and expect to make money. You need a plan if you want long-term stability. Let's look at how smart portfolio management can create stable income.
Start With a Plan
The first step to managing your property portfolio is to create a plan. Ask yourself, what steps do you need to purchase stable investments and grow them over time for passive income and appreciation?
Look at the market you plan to invest in to see what the cost is in the area. From that, you can determine your likely monthly income and expenses.
This information will help you plan your rental strategy to verify that you're on track for success. If the net profit isn't large enough, your risk appetite may push you to look for other property investments.
Develop an Online Presence
It's hard to do well in today's world if your online presence isn't good. People look online for reviews for everything now. If you have a poorly reviewed property, it will turn off quality tenants from applying to rent.
Make sure you set up your online presence. If you have a management company, create a website to discuss what you do. Encourage your renters to leave honest reviews to start getting feedback online about the service you offer.
Use Technology
You must be as efficient as possible when managing a real estate portfolio. You don't want to spend all your time working on redundant tasks when software is available to automate much of the process.
Look for automation solutions to reduce some of the work. Here are a few examples:
- Online tenant portals
- Financial software
- Property management software
The more time you can offload to software, the more time you have to focus on higher-level tasks that make more money.
Build a Team
A team is one of the most important things to have as you grow your rental income. Although technology will get you far, you'll still need a human touch for a lot of the property management experience.
You can outsource as much or as little of the process as you want. For example, if all you want is help maintaining the property, you could reach out to home contractors to build a small team of experienced workers.
Of course, you can also outsource almost the entire process. There are many full-service property management companies that will handle everything from tenant placement to payment collection.
Take Portfolio Management Seriously
It's possible to make good money owning a real estate portfolio. However, it will take work on your part to come up with a plan and execute it correctly to see returns on your investment. Use the advice above to optimize your portfolio management strategy and meet your financial goals.
Are you looking for a partner to help you manage your portfolio and increase rental income? At PMI Commonwealth, we offer management services for any property management need you have. Contact us to learn more.
