The real estate market is booming and homes for sale and for rent are in high demand. So much so that individual real estate investors account for 71.6% of residential rental properties in the United States.
This is prime time for starting a property investing business or if you’re already in business, time to make the most of it. From assessing the market and seeing where you can make the most profit to making a plan for future investments, you can run a successful business on auto-pilot.
Keep reading to learn how to make the most of your investment properties and grow your portfolio at a pace you’re happy with.
Improve Your Investment Strategy
Though buying an investment property seems like passive income, this is a common myth many landlords and investors believe. If you’re renting out units and managing everything yourself, this is active hard work.
The best way to ensure you and your property portfolio are thriving is to hire a professional property manager. This way, you won’t have to be on location all the time and your property will be well taken care of.
Give Your Properties a Facelift
One of the fastest ways to boost revenue and grow your Memphis property investing business is to renovate or remodel some of your properties. This is an effective method to boost property value and make it more marketable.
You can do a full renovation if the property is older or remodel the most important rooms. You could also plan for house additions like adding an extra bedroom, converting the garage, or converting the attic into a living space.
Even repainting the rooms can freshen them up and make the house look more appealing. Cosmetic touch-ups are also very important if you’re trying to rent out the home. It’s a surefire way to attract your ideal tenants and ensure a healthy ROI.
Analyze The Real Estate Market
With property investing, you always have to keep up with the trends and changes in the real estate market. What’s hot right now? Are some types of properties more in demand than others? What properties are more likely to be rented out quickly? Are the rent prices changing? What do tenants want and expect from a rental unit and a landlord?
These are all questions that can help you get a good insight into what’s happening on the market. They’re also great if you want to choose your tenants better and serve them exactly what they need.
If you notice any ways you could improve your investment strategy or offer something that’s in demand, you’ll be way ahead in the game than your competitors.
Diversify Your Investments
Having a solid and safe property portfolio is a great way to secure your profitability. But if you want to grow and expand your business, it’s time to diversify your investments.
For instance, if you’re managing properties in Memphis, don’t limit yourself to one specific type of property. Explore other options in the area to check out the real estate market and new properties.
Plus, diversifying can be fun and exciting. There’s always something new to discover and you’ll learn a lot more about the real estate business by trying out different things.
Make a Plan For Future Investments
One way to grow is to hire a local property management company to take care of your properties in the Memphis area. This will not only provide a great return on investment but also give you a lot of free time to make plans for future investments.
You should also consider crafting a few exit strategies for peace of mind, as well as a savings fund that you can access in case something happens. If you have multiple properties, at some point there will be vacancies so you should also account for that.
Since you can’t predict these situations with certainty, you should have a plan to cover the vacant properties’ expenses without losing your profits.
Hire a Property Manager
As you grow your portfolio, you can’t be as hands-on as before. Now is the best time to consider property management to make the most of your properties. With a property manager, you no longer need to make major decisions, worry about collecting rent payments, or do any property maintenance.
A good property management company will take care of all of this for you, and more. In fact, your property manager will do all the tenant screening, leasing, property marketing, accounting, and even contracting wherever needed. You can rest assured your properties are in great hands and all you need to do is touch base with the managers once in a while.
Reassess Your Expenses
Investing in properties is very lucrative but it also comes with a lot of expenses. As long as your business is profitable, you have nothing to worry about. However, expenses can creep in quickly, especially with new properties.
If this happens, take a step back and reassess your expenses. See if there’s a money leak somewhere that you can fix immediately. Analyze where you can lower your expenses regarding insurance, interest rates, maintenance, and utilities.
At the same time, see if you can increase your profits by reviewing your current rent pricing and finding ways to maximize it. Finally, see how much revenue you’re making per property and where the biggest gaps are. For example, if a property has expenses very close in number to your profit, you need to reassess one of these metrics.
Making the Most of Your Investment Properties Is Easy With These Tips
Whether you’re just starting out in the world of real estate or have a full property portfolio, you can always make the most of your investment properties by following these tips. From lowering expenses to finding a professional property manager, you can maximize profits and have more free time with a solid plan.
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