Whether you're an aspiring investor or a seasoned pro, you need an asset management plan ready to go before purchasing a property.
Investment properties can start generating income in a matter of weeks with the right strategy. This strategy must include full-service real estate asset management from a trusted property management company.
There are more than 19 million investment properties in the United States. Known as rental properties, this investment model is the most consistent in terms of cash flow. There's also a higher likelihood of selling investment properties with proven track records of passive income.
Follow the steps below to ensure your real estate investment reaches its maximum potential.
Invest in Property Management Strategies
These types of endeavors require an experienced property management partner by your side.
A full-service agency will inspect and prepare your property for rent. This includes identifying the most responsible long-term tenants for your property and attracting them to rent through targeted marketing strategies.
Other services include:
- Property maintenance and rental inspection
- Tenant screening (background checks, etc.)
- Rent collection
- Financial accounting
- Property upgrades
- Pricing strategy
- Eviction services
- Property marketing
While there are notable similarities, like property maintenance and rent collection, asset management practices for commercial investment properties do differ from residential rentals.
Tenant screening also includes profit track records. You couldn't just rent to any responsible tenant; the commercial tenant would have to provide a business need in the community. For example, if the community needs a new grocery store and has plenty of coffee shops, you would rent to a grocer and not a cafe owner.
Fill Vacancies With Real Estate Asset Management
One of the most crucial aspects of asset management is filling vacancies. You're bound to lose money if you leave properties vacant for too long. Rentals incur property taxes; a property manager can also handle this type of accounting for you.
Commercial investment property owners must be mindful of vacancies, too. Empty storefronts and office buildings can raise concerns throughout communities, even negatively impacting neighboring businesses. Property managers work steadfastly to ensure these vacancies are filled with relevant businesses.
Real Estate Portfolio Optimization
It's not just about the number of properties you own, it's about which type of properties you own. Portfolio diversification spreads out assets among various locations and property types. An experienced real estate professional can help you hone in on properties and locales with the highest earning potential.
Don't be afraid to sell off properties to make room for more opportunities. This tactic speaks to the importance of maintaining consistent cash flow among your investment properties. Buyers also look for properties with long-term tenants who stay for three years or more.
Make the Most Of Every Real Estate Investment
Don't just buy properties. Invest for the highest real estate ROI possible. Work with a property manager to ensure consistent cash flow at maximum rent prices. Discuss the tips above to strategize your portfolio.
The team at PMI El Paso is dedicated to real estate asset management and maximizing value for every client. Our property management expertise ranges from single-family homes and condos to office buildings and retail. Our leadership team has over 15 years of experience and holds industry designations in EPro and ABR.
Schedule a consultation to learn more about the possibilities of El Paso real estate.
