Whether you’ve purchased a condo or retail property, you want to make the most of your investment so that you can profit on it for years to come. Making a profit usually starts out with a great purchase, but that decision can likely be made in a matter of weeks or less. Running your property smoothly, renting it out, and making the most money possible from it is how you succeed in the long term.
Accounting Skills
The very first thing you need is a basic grasp of accounting skills including bookkeeping, taxes, and of course, statistics and figures to help determine expected profit margins in order to rationalize investments on the property. Typically if you are good with mathematics you probably don’t need a lesson or course, but otherwise might want to take a short college course on business mathematics or taxes. Alternately, you could choose a property manager in the area and specialization of your choice (for example a Redwood retail property manager or a Seattle condo management company).
Advertising and Marketing
Advertising and marketing are understated skills for the real estate investor, but unfortunately very necessary for anyone with a large number of units. Profit typically depends on having your units rented out, and if no one knows they are available, they won’t rent. However, spending too much on your advertising and marketing will create a loss. Normally creating a comprehensive marketing plan, focusing on advertising to areas and demographics that will rent your property and choosing flexible marketing plans is the best way to go. Once again, you can also choose a property management company in the area that can handle the marketing for you because while advertising costs are still very real, they are more likely to be very experienced with filling units.
Choosing Tenants
Not every tenant is a good tenant and a bad one can cost money. You want a tenant who is not going to damage property or cause a lot of problems. Usually you should screen each tenant and maybe even run a background check on them before handing them the keys. Great qualifications include that the person has a steady job or has just moved to the area and already has a job, has children, or has a strong record of staying in the same place for a long time. This last factor is important because the longer someone stays the more money you make, and the less likely that they were actually asked to leave their previous apartment or rental unit.
Considering a Property Manager
Did you know that a property management company can actually save you money? Consider looking around in your exact area and then finding a property manager who is willing to offer you a free quote. Typically a good property management company will handle everything on the above list, meaning that you can relax and focus on future investments rather than spending all of your time taking care of just one.