The best way to go about protecting your property investment and to ensure your investment remains a profitable endeavour, is to view it as your own personal business. This means that you will get out of it what you put in, and its success will hinge on the strength of your efforts, so that means no corner cutting.
First, you need to find ways in which to increase your revenue. This could mean doing something as basic as attracting high quality tenants, or appropriately adjusting your pricing. This is not lowering your rent in an attempt to attract tenants, which encourages people that are simply looking for the lowest price possible, rather than a long term home based on location, amenities, etc. As an experianced Edmonton property management company, the former are much more likely to move in a shorter period of time, a cost which is absorbed by the owner.
Once you have these basics down pat, you can begin to focus on more inventive ways to increase your profitability, and maximize the return on your investment.
1. Reduce Your Expenses
Perhaps the most effective way to reach your profitability goals for your investment property is to minimize unnecessary expenses. Remember, this doesn’t mean neglecting things, or cutting just anywhere. For example, a smart investor wouldn’t hire a lawn maintenance company without shopping around first. They would look for the very best deal possible in order to reduce their expenses (as long as the quality of the company’s service was acceptable).
One other way to reduce costs is to implement solutions that minimize the amount of energy that is wasted in the property. Sealing up cracks in the house, replacing old windows, and having a newer model of thermostat, are all ways in which you can save on your heating bill. This is a clear case of making a short-term investment in order to receive long-term gains. Always be thinking ahead, and don’t procrastinate on things that need to be fixed, or you’ll likely regret it in the long run.
2. Have the Right Team
One of the most important decisions that you will make as a property manager will be to hire a reputable and experienced property management company. If you are truly serious about your real estate investment you will need a true professional to handle your assets for you. Delegating tasks such as collecting rent and making repairs will save you time and money.
With that being said, it is essential to make sure that the company you are hiring has a good reputation. Although there are many websites dedicated to this type of thing, you can’t always believe what you read, and nothing can substitute a word of mouth referral from a friend or family member. You also need to remember that some things are best handled in person, and the greatest results are achieved when you are readily available, and communication between all parties is open and easy.
3. Value Your Tenants
It is absolutely crucial not to view your tenants as mere renters, but to instead look at them as your valued customers. Building long-term relationships through trust and respect is not always easy, but if the effort is made, you will find yourself with the quality people that every landlord is after.
Simple acts like sending a Christmas card can go a long way. A small gesture of kindness will show them that you value their business, and don’t take them for granted. Perhaps a nice gift basket on their birthday, or a few movie tickets on an anniversary? This will keep the relationship going and simultaneously encourage them to speak well of your property.