Any efficient owners or investors and property managers know that multiple factors contribute to running a great business. Keeping your clients and residents happy stands tall at the top of the list. However, sometimes that isn’t the easiest job. Problems can arise that you weren’t prepared for, or don’t have the means to solve. On the other hand, some problems can be fixed in an instant. The key to keeping a successful investment business is very simple, the three M’s. Maintenance, Minimizing Expenses and Managing Debt & Risk. If you have a grasp of these concepts as an owner or investor, your investment business will be thriving in no time!
Picture this scenario: You recently bought a vintage Ford Bronco, but it doesn’t run. What do you do? Do you let it sit in your garage for years, or do you persistently work on it? Fast forward a couple of months, it is running but now needs an oil change. Do you let the oil dry up or do you change it? By fixing up the car, and maintaining regular upkeep on it, you have just lengthened the lifespan of your vintage bronco and will have it for years to come. Similar to vehicles, regular maintenance and upkeep of your home raises the property value and reduces your cost in the long run.
A large aspect of successful investments is maintenance, and how you handle it. If you take days to respond to maintenance requests, your residents will become unhappy, and might not want to renew their lease, which then hurts you, as the owners or investors, and lowers your tenant retention. By maintaining frequent upkeep on your property, you lengthen the lifespan of your home, which keeps residents living in it! If you wait until the last minute to perform maintenance, you could risk things getting worse, and having to spend more money. Persistent upkeep of your rental home keeps your property value high and keeps tenants happy, which means higher tenant retention!
Owners and investors hire property managers to help minimize expenses and the workload on themselves. Being able to only spend money, when necessary, falls back on maintenance, and responsible care for such. Chances are, if an issue is not fixed in a reasonable amount of time, it will progress and end up costing you, the owner, more money in the long run. Property managers are here to control and manage all incoming requests from residents and fix them before it gets out of control. Thus, minimizing total expenses for the owners.
In addition, another way to keep expenses low for the residents is to stay proactive when it comes to your property! If you know the HVAC is getting worn down, go ahead and replace it instead of waiting until it breaks and potentially causes more issues. By doing so, you keep the residents’ utilities low by making sure all appliances are in fully working order. As an investor or property manager, it is important to make innovative repairs to sustain low costs. Some examples include LED light bulbs and energy-efficient appliances.
Managing Debt & Risk
Unfortunately, as investors and property managers, disasters and accidents happen. Not one owner or investor can say they have a flawless record. The most common “accident” that occurs, is picking a not reliable tenant. Sure, they passed the screening, and on paper, they looked great! Property rented! Check! A couple of months into their residency, you realize they are causing more of a problem than solving one. They are always late on their rent, sending maintenance requests at all hours of the night, and not following HOA guidelines. As an investor, how would you handle this issue amongst the 100 other projects you currently have going on? Property managers perform extensive screening on every potential resident to lower the possibilities of these problems arising. This does not mean that property managers are perfect at finding tenants, but the deep screening digs to find any past problems with landlords and gives an idea of what type of resident wants to be living in your home.
Another way to manage risk as investors or owners is to secure insurance. Not only for your home but for your renters as well. Homeowners insurance protects your home from natural disasters, such as fire, water, or wind. Having this insurance is a safety net in the event of significant damage. Unlike car insurance, homeowners’ insurance is not required in Georgia. That being said, it is up to you to protect your home for yourself and your renters. Requiring renters’ insurance is another way to ensure your home, and its belongings are protected. Our company requires renters’ insurance, so our residents feel cushioned in the event of a robbery, fire, or any other disaster.
Running a successful investment business requires lots of time, dedication, and communication. Owners and investors across Gwinnett County can often become overwhelmed with all the tasks at hand while renting their property. Hiring a property manager eases the stress off your back, yet still makes the most of your investment property. If you choose to ride this road alone, keep in mind the three M’s, and your business will take off in no time!
If you are looking to purchase a rental property in the Gwinnett area and need some professional management assistance, contact us today and we will be glad to guide you through the process!
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