Without proper management, your investment portfolio will be like a ship cast adrift without a captain at the helm successfully navigating the waters. It takes time to steer a boat in a new direction and keep in line with upcoming market changes, such as rent increases or building your portfolio with fantastic investment opportunities.
Managing investment properties involves a great deal of interaction with tenants, keeping the property well maintained, and bookkeeping activities, including tax preparation. Disgruntled tenants calling at all hours, investors knocking on your door, and financial turmoil are just some of the results from poorly managed properties. So we have gathered together five tips for investors who manage multiple properties in Philadelphia.
Our first tip for investors who manage multiple properties in Philadelphia is to use a screening system for tenants to ensure the best overall returns on your investment. There is much more to managing investment properties than putting on the hat of a landlord and collecting rent checks. Your goal as a landlord is to provide housing and create a management system that results in happy tenants. The quality of the tenants has a ripple effect on the enjoyment of other tenants. Happy tenants take better care of their residences and result from management being on top of maintenance problems. On the other hand, tenants feeling unheard leads to high turnover rates, so you should focus on keeping open lines of communication and remaining respectful under all circumstances.
Maintenance and Inspections
As crucial as the tenants you put in place in your investment property, our next tip for investors who manage multiple properties in Philadelphia is to develop a system to maintain the buildings. Missed maintenance issues become a much more expensive emergency. In addition, poorly maintained facilities can lead to the cancellation of your property insurance. Other results of poor maintenance are health issues and safety concerns that could do harm or seriously injure your tenants, for which you could also be legally and financially responsible.
Another essential tip for investors who manage multiple properties in Philadelphia is to stay on top of the accounting for your rental property. This area of real estate investment management for numerous properties also requires a tried-and-true system to keep control and have your books up-to-date at all times. Failure to do so can be costly in a multitude of ways, vendors may stop supplying if you are not up-to-date with your account, and the IRS may not be all too happy if your records are not in perfect order. No matter what, never mix your personal and business finances.
One more tip for investors who manage multiple properties in Philadelphia is to decide on your management strategy. There are three options, do it yourself, hire a management team to handle the parts of management, or hire a full-service management team. Of course, running a one-person operation will limit the number of investment properties you can adequately manage alone. Still, suppose you want complete control over a more enriched income in retirement and can deal with all the trappings of management; in that case, you are well suited to the strategy of do-it-yourself management.
Philly RE Holdings
Last but not least, our final tip for investors who manage multiple properties in Philadelphia is to work with Philly RE Holdings. Philly RE Holdings has been managing properties for many years, and you can rely on our experienced management team to keep you and your tenants satisfied, your buildings in shipshape condition, and the taxman happy. At Philly RE Holdings, our goal is to make your investment dreams come true. Contact Philly RE Holdings at 215-608-1807 today to learn more!