For every investor, the goal is to grow his or her investment portfolio. Well, this is true even when it comes to real estate. There is a lot of money to be made in real estate. Majority of real estate investors start with a single unit. What you ought to know is that this single unit can multiply your portfolio or remain as is. So, how can you grow your real estate holdings on a regular basis?
Here are 7 innovative ideas to help you grow your real estate holdings on a regular basis.
1. Make marketing your mantra
An empty real estate property costs you money. For starters, you are unable to earn any rental income because let’s face it. You don’t have a tenant. Secondly, the house needs to look pristine just in case the next person is interested. This calls for the hiring of a cleaning crew to keep everything ship shape. Lastly, you may have to hire a property manager to manage your real estate investment. This is done to prevent unauthorized users from damaging the property. To ensure the property manager keeps an eye on your home, you have to fork out money from your pocket and pay the property manager.
To avoid further losses, start marketing your rental property. Options available include posting your listing on Craigslist, Zillow, Trulia, and Realtor.com. You can take it a step further by using Facebook sponsored posts.
2. Analyze your competition
Just like in the regular business, the real estate business does have competitors too. You need to ask yourself – why are tenants opting to rent from other landlords and not from you? Are there any incentives being offered by other landlords such as free months? What is the current rental amount in the neighborhood?
To learn what your competitors are up to, you need to research. Start with platforms like Craigslist, Zillow, Trulia, and Realtors.com. Don’t forget to check out social media platforms and respective business pages to gather more information. With the information at hand, you can now formulate your own strategies and make your real estate holdings attractive thus having an upper hand over your competitors.
3. Schedule regular maintenance
The goal of keeping your tenants happy is regular maintenance. What issues are affecting your rental property? Do you have a maintenance schedule plan at hand? How do you handle tenants’ requests? Do you simply ignore them hoping they would resolve the problems themselves or do you hire an emergency contractor to resolve the problems?
How you handle tenant requests such as toilet leaks, clogged pipes, and broken panes among others will define whether your real estate holdings continue to grow or not. It is important to have a maintenance schedule at hand. This helps to handle checks on smoke detectors, water heaters, and HVAC units among others. As a result, you can save thousands of dollars in the process by making early repairs.
4. Work with credit bureaus
Ever had to follow up on a debt from a family member or friend to whom you gave a few bucks or thousands of dollars. Well, you know it’s not easy especially considering the number of tricks employed by the individual to ensure that you don’t get your money back.
This is the same with real estate. Late rental payments are an inconvenience. For starters, you may be forced to dig in your pocket to pay off the low-interest mortgage payment. Furthermore, it creates a bad relationship between the landlord and the tenant. To avoid this, work with credit bureaus. They can help identify tenants with risk thanks to their rental payment history.
5. Keep learning
Today, millennials and Gen Z account form the largest percentage of renters. Unlike the older generation who contend with having a well-kept home, millennials and Gen Z have different expectations. For starters, they are technology driven which means they will prefer to settle rental payments online or via mobile payments. Lastly, they are a social group which means you must factor in socialization areas – indoors and outdoors.
The good thing about such amenities is that you don’t have to break the bank. Furthermore, they help to attract and retain millennials and Gen Z for years to come. This helps to grow your real estate portfolio.
6. Always communicate with your tenants
It is important to communicate early. As a result, you will eliminate the chances of inconveniencing the tenants. Remember, if you piss off the tenants, they will take to social media platforms, Yelp and BBB to vent their frustrations. You don’t want to have negative customer reviews defining your real estate portfolio. To improve communication, invest in web-based or mobile technologies. This will help to streamline communication between you and the tenants.
Now that the single unit you started with has met and exceeded your income goals, it’s time to diversify. The good news is that all you need to do is place a 20% down payment on a new rental property and the rest can be settled using a low-interest mortgage. Using the same marketing tactics that ensured the success of the first unit, you should be on your way to increase more units under your portfolio.