Investing in property is one of the best and safest ways to preserve and grow wealth. However, many people are uninformed about how to accomplish this. Because property management is often an unknown and somewhat misunderstood field, many people are afraid to take the risk and dive headfirst into a property management scenario. Avoiding this venture simply you are worried about staying on top of the many facets of property management is a big mistake. Luckily, it’s also a hurdle that you can easily clear with a bit of research. Here are some tips on how you can increase your property management portfolio.
Start in the Local Area
The first step that many recommend taking to build your portfolio is to work with the locals to gain some insight into your area. Research the area to find out if there is a significant population of property investors, HOAs, or planned developments. In many circumstances, these properties are great places to start to find out how much opportunity exists in your area. In most circumstances, the presence of these parties indicates that there is a major desire of multiple demographics to live in that area. This means shorter tenant turnaround times and more bids to find the perfect tenants for you.
Look for Smaller Properties
When starting out and steadily growing your property management portfolio, it is important to start with smaller properties. Simply put, you do not want to bite off more than you can chew. When looking for smaller properties, try to narrow your search to newly listed homes. Ask the owners if they would be interested in renting out the property, then provide them with service based on your expertise in the area. In most circumstances, you will want to start out with smaller properties simply because you won’t yet have the managing resources on hand to sufficiently run a larger property. If you start with single-family homes, you will have a much easier time keeping up with maintaining and managing the logistics of the property.
Build a Brand
If you are running a property management business, you must build your brand. This could mean anything from establishing a base in town to putting flyers on car windshields. Keep in mind that if you get a customer, they will expect to deal with a responsible and experienced manager who will represent them with respect. Other ideas to get the word out could involve taking ads in newspapers or making an emailing list. As long as you are getting your brand’s name into the hands of your intended audience, you are doing the right thing.
Every property you manage is going to be different. Your tenants and the services you provide will undoubtedly differ based on the area in which your property is located. It is your job to be as consistent as possible in the services you provide. One of the easiest ways to do this is to establish systems that automate much of the renter-tenant interaction. An example of this would be the usage of an automated messaging system that’s specifically intended for repair requests. That way, you have no way of missing a request, and a tenant can contact you at virtually any time. You can use these automated systems as much as you like, even going so far as even to automate rent collection.
Talk To the Bigger Competitors in Your Area
One of the funny things about business is that successful business owners are always itching to give away their savvy business secrets. Take advantage of this! The bigger competitors in your area just may be the best resources for you to see what you need to change about your business. Compare your business to theirs and ask yourself questions such as:
– Do they provide any services that I don’t?
– Are they having an easier time with a specific service provider than I am?
– Do they make any updates to the property between tenants?
– What sort of branding do they do? Would this work for me?
– Are there any mistakes that they have made that I can learn from?
– Is there anything that the other business owners can tell me about the immediate area?
– Can they recommend a specific company to take care of any maintenance work I may have?
Asking yourself these questions can help you better understand how you can maintain a standard of excellence that is on par with your competitors.
Keep Your Current Clients Happy
Before moving on to larger properties, take some time and find out what your current tenants feel is lacking in their residences. The odds are that once you get a new property, you will be less likely to update the older ones. As such, it is important to ensure that you adequately update and maintain your current rooms. Think of it this way: if you move on to other properties and forget about the ones you already have, you will be neglecting a large portion of your investment for a small percentage of new growth.
Leverage Online Marketing
Having a business without a website is simply unheard of nowadays. Most people view a website as an online storefront through which potential clients and partners can contact them. However, websites also serve as a space for you to advertise the services you provide and what you offer to the standard consumer. The key to success here is to ensure that you are constantly updating your website through blog posts. Additionally, ensure that your website is streamlined enough for anyone to use. If you find that you still are not getting enough traffic on your website, consider trying social media marketing for a more targeted audience.
We hope that these tips on increasing your property management portfolio have helped you recognize how to improve your business strategy and become more successful. Just remember that business development is a slow process and that the more consistent you are in your business, the more recognition you will receive. If you could benefit from the help of a property management company in Oviedo, Florida, contact Russell Properties.