A quick guide to real estate management that can help you achieve your business goals.
Engaging in the real estate business can turn out to be one of the best decisions of your life because of the growing market demand and booming prices. Reports show that real estate prices have been increasing ever since the market reached the lowest point back in 2008.
But it doesn’t mean that success is guaranteed. On the contrary, the endeavor can also prove to be a major failure if you don’t pay attention to the basic rules of real estate management. After all, only top-performing agents can stay successful in the long run and keep outperforming their closest niche rivals.
In this post, we will give you a quick guide to real estate management that can help you to achieve your business goals. Let’s take a look at seven major features of real estate management.
1. Make sure to polish your property
The first rule of real estate management is not to sell properties before making them look amazing. Your job is to make the most of the property by repairing it and taking care of the most urgent issues, respectively.
2. Determine the price
Here is the tricky part for many beginner-level real estate managers because they are not sure how to evaluate their properties. If you are one of these agents, here’s what you ought to think about:
- The general quality of your real estate
- Average prices in a given location (for example, prices in San Francisco are much higher than in Denver)
- The average income in the target territory
- The typical size of a local family
- Special advantages your property might be offering (nearby transportation lines, quiet neighborhood, etc.)
If you add all of these factors to the equation, you can determine the price much more accurately and realistically.
3. Market your property
Marketing is certainly one of the most difficult parts of real estate management because you need to identify the best communication channels and promote the property using the right messages.
We strongly recommend you to design a good-looking website with all the properties at your disposal. Each item demands a thorough explanation, but it would be perfect to include a video description as well.
Other very effective communication channels are email newsletters and social networks, but try to focus on relevant platforms only. Besides that, you should not run away from display advertising via Google AdSense, Facebook Ads, LinkedIn advertising, and so on.
4. Maintaining your property
With all the efforts you’ve invested so far, we believe you’ve found the tenants. However, this is not where the story ends as you still need to handle a lot of details such as property maintenance.
First of all, you should visit the place regularly in order to pinpoint possible issues with the property and prevent further damage. Secondly, regular visits will help you to build a stronger relationship with a tenant, especially if you don’t push it too hard and communicate with attention and delicacy.
5. Payment collection
Real estate management comes down to collecting payments, but it can often become a painful and awkward experience with irresponsible tenants. Generally speaking, you can collect installments or rent in two ways:
- Real estate traditionalists still rely on check received via mail.
- Modern agencies rely on real estate management software. It’s a simple rent collection tool that automates the process, creates invoices, and even warns tenants about late payments.
6. Beware of contract breaches
A contract breach is not something you’d like to experience frequently, but it happens from time to time in every business. If you want to take care of it properly, make sure to learn all about local real estate and lease regulations. When the reason is sufficient for eviction, you need to follow a highly specific procedure:
- Hire a lawyer to execute the whole procedure
- Keep the tenant informed officially
- Send your eviction request to the local court
- Restrain from communication with the tenant until the process is resolved by the court in charge
- Act according to the court’s decision
7. Mind the accounting
The last tip is very important as you don’t want to end up dazed and confused. The easiest solution is to hire an accountant to handle your finances, while another option is to use an accounting platform. In each case, it will be much easier to keep an eye on expenses and make the company profitable and fully operational.
Up to You
Real estate management is a profitable business for thousands of companies, but only the most agile organizations and agents can hope for long-term success. In this article, we showed you a quick seven-step guide to real estate management.
Do you already follow some of these rules? Have you got any other ideas or thoughts to share with our readers? Let us know in the comments – we would love to hear about your experiences with real estate management!