The best time to plan for success is before you jump into a new venture. Working with a successful property manager will help you achieve your goals faster than handling all the details on your own. Invest in rental real estate with these seven essential tools in your toolkit, and you won’t leave your success to fate.
1. Research
Before you do anything (and we mean anything), do your research. Success begins with understanding the necessary considerations and potential benefits of establishing a rental property. Initial property investment purchase considerations include financing options and the best strategies for earning supplemental income with your investment.
2. Business Plan
Lay out a detailed, three to five year timeline with steps you’ll take to grow your revenue. It sounds intimidating, but using an online tool like LivePlan can help you take the big picture and break it down into smaller, manageable components. Business planning is the first step in launching any business venture, and real estate investing is no different.
3. Ironclad lease
Find a generic download from NOLO or another property law site, then have a legal professional review and tweak your lease for your specific area and property. A lease should be a failsafe, guarding against every possible liability or tenant situation. It’s a great investment and needs to match your needs.
4. Trustworthy management software
Your software should address accounting needs, applicant screening, online payment processing, tenant tracking, and other options that depend on your needs and preferences. Check reviews to make sure your choice is well-supported and reliable. Get started by looking into ResMan.
5. Marketing plan
Planning for marketing your property is a task best completed along with your business plan. Keep it flexible, making sure to account for adjustments in your target audience and the success of your marketing mix. Never stop learning; it’s a field that’s ever-changing.
6. Supportive staff
Dependable and engaged employees and contractors are essential to real estate investing success. Develop a hiring strategy that is brand-focused and integrates your marketing strategy. Stay current on the latest human resources management tactics to retain great employees. Starting over with a new hire is expensive, and it hurts your bottom line in the long run.
7. Plan B
Knowing your strengths and weaknesses means knowing when it’s time to delegate. When the minutiae of property management begin to take up too much of your time, recognize that it may be time to hire an experienced and successful property manager.
Class A Management: Your successful property manager
Your time and the success of your investment depend on having a workable plan and sticking to it. As every successful investor knows, “failure to plan is a plan to fail.”
With over four decades in the property management industry, our team can help you with each of these tools and more. Learn more about how Class A Management can help ensure you have every tool you need.