Tuesday, December 02, 2008

Re-evaluate Your Team

With everyone talking about the market and what it is doing, I thought I would look at how to most profit from the properties that you currently own. If your team isn't a smooth running machine then adding new properties to your portfolio may not be a good idea.

An investment team consists of Realtors, property management , insurance brokers, mortgage brokers, accountants, lawyers and bookkeepers. The best way to make your property run efficiently is to CONSTANTLY improve the way your team runs your properties. Reducing costs, effective marketing, bulk or discount rates and innovative thinking are all ways to fine tune how you run your business - because that is what each property is, a mini business and the tenants are the customers.

Cutting costs isn't the only way to do this in fact doing so may cause more trouble than it's worth. Although a bargain shouldn't be passed up, many services are worth what you pay and decisions should be made on the quality of service not the price (especially true for legal advice).

Market to find great tenants and then use incentives to keep them happy, long term renters that equity building. That is a tenant who makes your property their home not a crash pad, a tenant who say, puts in a garden, finishes the basement into a hobby room or just keeps the place looking great. What incentives? A Christmas turkey or tickets to the movies... You decide what it's worth to keep them.

As your portfolio grows get bulk rates on anything you can. Buying carpet? Then buy one roll for all your properties this works with paint and any other DIY product. It keeps your properties uniform and that means less headaches for you.

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