Real estate asset management: The term sounds complicated, but it simply means smartly managing your real estate properties or investments.
Have you ever wondered how best to keep track of your real estate investments and finances? Read on to learn about some of the best real estate asset management practices you can implement today.
Work With a Property Manager
Why do everything yourself when you can rely on the experts? For a fee, you can hire a property manager to take care of all of your investments on your behalf.
Property managers know about landlord policies, rules and regulations, and the local real estate market. In addition, a property manager can free you up to invest in multiple locations. You won't have to be on-call whenever your tenants need something.
Streamline Tenant Screening
When you have an opening, it can be difficult to find a new tenant quickly. Every day that your property stays empty, you're losing out on rental income.
Find an easy tenant screening process that will help you weed out unqualified applicants. For instance, you can use software or an online program. You can simply disqualify tenants based on factors like credit score or criminal record.
Encourage Lease Renewals
It's much easier to deal with lease renewals than it is to find new tenants. You should incentivize your tenants to renew their leases. Even if you have to raise the rent, try not to raise it too much.
For instance, offer a rent discount for a few months if your tenant indicates they want to leave. You will probably still make more than you would if you put in the time, effort, and resources to fill the vacancy.
Perform Regular Property Maintenance
Property maintenance is one of the keys to protecting your real estate assets. What seems like a small problem can quickly snowball into something much more costly to repair.
Set up a checklist you can use when you do inspections so you don't miss anything. In addition, make sure tenants notify you of issues such as roof damage, leaks, and plumbing problems.
Find New Tenants Quickly
The longer your rental stays empty, the more money goes down the drain. When a tenant moves out, try to get a new tenant in as quickly as possible.
It's helpful if the previous tenant gives adequate notice about the move. This way, you can coordinate things like showings and get listings up and running on real estate websites.
You should also schedule cleaning and maintenance so your new tenants can move in as soon as possible.
Real Estate Asset Management Made Simple
Whether you're new to real estate asset management or want to expand your portfolio, it can seem overwhelming. With this guide, you shouldn't have to feel frustrated or scared.
Are you interested in property investment in Puerto Rico? PMI Puerto Rico is the partner you need to walk you through the process.
With our local market knowledge and decades of expertise, we are here to help. Reach out to us today for more details.
