Are you looking to build lasting wealth? Most millionaires claim that real estate is the best asset class for building and maintaining wealth long-term.
But you can't just dive into real estate investing without knowing what you're doing, or you can end up wasting a lot of time and money.
If you want to build a lasting portfolio, you need to master real estate asset management. You need to know what it takes to maximize profitability, minimize expenses, and keep good tenants as long as possible.
So what does successful real estate management look like? Keep reading below to learn three important asset management tips for building a profitable portfolio.
1. Require Renters Insurance
One of the simplest ways to secure your real estate asset is to require all tenants to have renters insurance. Tenants may be tempted to skip this insurance policy, thinking they won't damage your property.
Plus, renters insurance isn't required by law. But as the property owner, you are free to require tenants to have a policy in place.
But renters insurance protects both you and your tenants. It provides peace of mind for both parties. And even though your insurance policy might cover damages by tenants, filing a claim would lead to a rate increase. So it's best if the tenant's insurance policy handles this.
2. Stay Up-to-Date on Maintenance
To make more money in real estate, increasing rent isn't the only option. One of the best ways to increase your cash flow is to decrease monthly expenses and repairs.
Preventative maintenance is always more cost-effective than waiting until something breaks. Perform regular property inspections and have certified individuals perform regular tunes ups on your HVAC system, plumbing, and electrical.
Replacing old appliances, light fixtures, and plumbing fixtures can lead to fewer phone calls from tenants in the middle of the night.
3. Hire the Best Property Management Company
The best way to achieve success with your real estate investment is to outsource the management to experts. Professional real estate asset management companies will make your life as an investor much easier.
They will handle everything from cleaning and repairs to marketing the property and screening tenants. Working as a landlord can quickly become a full-time job.
It takes a lot of work to find high-quality tenants. And it can take a lot of time and energy to actually get them to pay every month.
And don't forget the phone calls in the middle of the night letting you know that the toilet is clogged or that the power went out.
By outsourcing property management to professionals, you'll end up with lower vacancy rates, streamlined expenses, and greater levels of tenant satisfaction, which can lead to less turnover.
All of this allows you to collect your rent check passively. This gives you the time you need to continue looking for new properties to acquire so your portfolio grows.
Real Estate Asset Management Done Right
Real estate asset management is a lot of work, especially as you continue adding new properties to your portfolio. But investing in systems and processes to streamline your property management will go a long way to ensuring profitability.
Outsourcing your property management to professionals is the best way to secure your investments and free up your time to grow your portfolio.
If you're investing in the Spokane area, reach out to us today to see how we can take care of your real estate assets for you.