The average stock market return over the past 50 years has been 10%. If you have portfolio properties, then experts suggest that a good return on investment (ROI) would be a similar number.
If you’re getting a lower ROI, then it’s time to raise that number and protect your investments. Otherwise, it won’t be worth your time to keep them running.
Changing how you manage your property investment doesn’t have to be difficult either. Read on to find out how to manage your portfolio properties so they make great returns.
Table of Contents
Understand Your Goals
If you don’t have clear-cut goals, it’ll be challenging to determine the best management practices.
So sit down and ask yourself what you want from your rental properties. Do you want to make money from rental income, long-term appreciation, or both? Your answer will shape your management strategy.
Diversify Your Portfolio
As with any type of investing, you need to diversify your portfolio. Putting all your eggs in one basket is very risky, so it’s best to spread your money across different types of properties. It’s also best if you buy properties in various locations.
These actions will mitigate risks and also provide some stability when there are market fluctuations.
Perform Financial Planning
A thorough financial plan for your portfolio will only be good in the long run. You should figure out the exact costs of not only acquiring each property, but also the costs of maintaining and managing them too. On top of that, calculate the potential rental income, taxes, insurance, and other expenses.
All this can be hard to do on your own, so using Balanced Asset Solutions Appfolio consulting takes a huge load off your shoulder. Property management software allows you to take care of everything from one central place.
To cover your bases, you should have a reserve fund. That way, if you run into unexpected expenses, you won’t go into the red.
Do Regular Property Maintenance
Part of protecting your portfolio properties is doing regular property maintenance checks and inspections. If any issues pop up, make sure to address them promptly.
If you stay on top of repairs and maintenance, then you’ll preserve the property value. And as a result, you’ll attract more tenants.
Do Thorough Tenant Screening
Implementing a thorough tenant screening process will pay off. You’ll find reliable and responsible tenants who will take care of your property like it’s their own.
For tenant screening, you should:
- Perform background checks
- Verify their income
- Check their references
Manage Your Portfolio Properties Well
Managing your portfolio properties doesn’t have to be difficult. If you do your due diligence, then that hard work will pay off.
While managing your property portfolio will require ongoing effort and attention, it’ll be worth it when you optimize its performance. Before you know it, you’ll achieve your investment goals!
If you need more help with your property portfolio, keep reading our blog page for more information.
Last Updated on May 28, 2023