Efficient property management is the best way to protect and optimize an investment. The reality is that sloppy property management opens property owners up to unnecessary risks. What’s more, it prevents property owners from optimizing their investment potential by decreasing value through oversight. With more than 15 million people living in households that are currently behind on their rental payments, it’s more important than ever for property owners to be able to manage their portfolios in accordance with changing laws and requirements for tenant relations. Here’s a glance at what’s to gain from efficient property management.
Return on Investment (ROI)
Efficient property management allows property owners to identify, optimize and maintain a property’s earning potential. Realizing ROI requires property managers to look at properties holistically to create a well-oiled management approach that unites many moving parts into one revenue-generating plan. The categories that need attention for good ROI include:
- Tax optimization.
- Strategic rental pricing.
- Fair, effective and legal tenant vetting.
- Capture of expenditures versus revenue.
- Organized rent collection.
- Document organization.
Good ROI for investment properties requires constant surveillance of property conditions to assess for upgrades that can enhance value while keeping the owner shielded from liabilities. It’s also important to keep an eye on general market conditions. This enables property owners to manage their portfolios in relation to long-term profit goals.
Quality Standard of Living
It’s easy for property owners to allow things to slip through the cracks in properties they don’t live in. While the intentions of a property owner may be noble, it’s very easy for living conditions at rental properties to decline without astute management techniques. Efficient property management allows property owners and landlords to meet the needs of tenants. This is important for both tenant retention and tenant recruitment. It’s also simply the right thing to do!
Property owners have legal responsibilities to create safe environments for living and working for their residential and commercial tenants. Legal liabilities abound when you own a property! Efficient management helps you to stay ahead of liabilities by creating an internal system for accountability that allows you to cover your legal and ethical requirements for protecting tenants, guests and the public from hazards.
More Free Time
The factor that attracts so many people to property investing is that properties create passive revenue streams. That means that income can flow in while property owners focus on other aspects of their personal and professional lives. Efficient property management helps to keep the passive part of passive income in play. The reality is that not taking time to create an efficient plan for property management ultimately takes up more time for the long term. Property managers without efficient management plans are always trying to catch up with repairs, late rental payments, vacant properties in need of new tenants, tenant complaints and complex tax issue. An efficient, organized management strategy adds just the right amount of automation to allow for predictable workflows every month. Ideally, a property manager will be able to “check in” to review pertinent documents and reports on as as-needed basis. Efficient property management ultimately feels like a very hands-on experience while allowing property owners to keep their minds off of the day-to-day hassles of keeping everything running smoothly!
Making a Plan for Managing Properties More Efficiently
At Foliolens, we understand the importance of having a uniform system for managing all aspects of running a successful, high-ROI portfolio. Our features let property managers manage everything from granular property details to market-wide factors in one ecosystem. Sign up for early access to scale your portfolio with easy!