3 Key Tips to Property Management

If  you go into it blindly, you may end up learning some lessons the hard way. It helps to have a set of resources, tools and advice going into property management that others have learned along the way.

Here are the three keys tips to property management:

1. Attract Quality Tenants. 

One of the most important lessons is to learn how to attract and identify quality tenants. This aspect directly effects the income and expense side of the equation. Bad tenants could ruin you and wipe you out. This is key to maintaining sustainability in managing property.
Deals and all negotiations with tenants must be a win-win outcome to succeed. The art of listening is an important part to this equation.  Creative problem solving is very rewarding - go for it!

2. Educate & Equip
Never undervalue the importance of education, networking and mentorship. Make sure you are educated on what you are getting into. This is essential.

You need to have the real numbers and put them in a cash flow analyzer before you start investing. Acquire your property the right way, with all of the information up front. Know answers to questions like “What is the vacancy rate?”; this varies by area. Find that out and know your market.

For longevity, make sure you have a team of people, this is not a solo act: a real estate agent, insurance consultant, lawyers, skill set advisors, coach and contractors (just to name a few). There are so many different jobs when owning property, you need to know what it entails beforehand, whether you do it yourself or have someone you’ll hire to do it for you.

You thought you bought an Investment?  Nope you bought a business and it’s not a hobby – treat it as such. This an active investment not a passive one – make sure you have the time and understanding that this is an “on the job training” and it’s a time involved endeavor!

3. Plan, Adapt & Adjust

If you are in it for the long haul -  establishing an "operating system" is  mandatory. What is an OS?  again a constant moving system - Process, procedures, forms, establish criteria etc.so that the system works for you and you are not a slave to your properties.

You want an automated process, especially when it comes to quantity.

Have a plan and system but be ready to adjust when the time comes. Learn to adapt and adjust - Managing properties is a moving target on a daily basis. Rules, codes, Market forces etc.. change literally in a daily basis. Change is inevitable. Deal with it!