10 Things to Know About Property Management

Real estate investors know that a large part of a stable investment is a properly managed property. Despite an investment looking good on paper, a poorly managed property can cause an investment’s ROI potential to plummet. Property management is a key issue in real estate and investors should know effective property management strategies. Here is a list of 10 things real estate investors should know about effective property management strategy.

1. Real Estate is a Relationship Industry – Managing relationships has a lot to do with effective property management. Real estate investing is based on building actionable and marketable relationships. Investors should be able to develop and maintain lasting relationships with vendors, lenders and tenants.
2. Have Secure Financials – Without reliable financial data and statements, investors cannot know an accurate current and projected internal rate of return or investment standing.
3. Know Property Values – Knowing the value of your investment or a potential property is key for effective property management. This is essential for buying and selling properties as well as establishing accurate rental rates.
4. Plan for Every Scenario – Effective property managers should be able to respond to and handle any emergency or unforeseen occurrence.
5. Don’t Rule Out Brokerage Commissions – Investors don’t like vacancies. Good property management strategy is to fill vacancies quickly and paying a brokerage commission to help fill a space can save an investor money in the long run.
6. Know Landlord/Tenant Laws – In Florida, there are laws in place that protect both tenants and landlords respectively. Knowing these laws is essential for effective property management.
7. Know Your Insurance Coverage – Uninsured property damage can seriously hurt an investment. Make sure you are aware of the extent of your insurance coverage.
8. Vendor Valuing – When contracting vendors, cheapest is not always best. It is much more financially sound to pay for quality work over discounted work.
9. Cyber Property Management – Property management has been greatly streamlined through the web. There are online and computer-based tools and strategies that investors can utilize for all aspects of property management.
10. Real Estate is a Dynamic Market – The real estate industry is ever in flux. New markets are always emerging and investors should always be looking to broaden and diversify their portfolios.