Your rental property assets are growing, and that is great news! After all, it means your business is doing well. That being said, with additional assets comes increased complexity. You need to manage multiple rental tenants in multiple properties, and they may be spread out in different areas and have very unique needs. A piece of paper or a computer file might work to manage one or two properties, but when you're upgrading to add new rental property assets, you need to upgrade your data management systems, as well.
If you're trying to grow from a few properties into a full property management business, you need to find more properties to grow into. Your first call can be to those you've worked with in the past. If an individual has asked you to manage their rental properties and is considering expanding, a satisfied client is the best kind of promotion you can have. They may have additional properties that they'd like to add to your business, and they may also have friends who'd be willing to add their properties as well. Here's how you can simplify asset management:
Add to Your Portfolio in Existing Neighborhoods
How are your existing properties working for you? You know the area and its dynamics, and you've gotten a feel for potential tenants who'd like to live there. If the neighborhood is a growing rental market and feels like a good fit for your company, look in the same area for a similar property so you can build on your competency. A great rental property software will help you identify the right areas.
Consider Foreclosures and REO Properties
When you're looking for new rental properties, you can look to real estate deals that have occurred due to past economic downturns or local downturns in your area. Economic shifts mean that some people may need to sell their home or experience foreclosure. They may choose to move to another area, or they may choose to rent instead. While the Wall Street Journal notes (subscription required) that rental rates have slowed recently, it also states that there have been "21 consecutive quarters of increases" prior to that. The rental market is still an excellent bet for the long term. Look at foreclosures and REO properties that are owned by a lender such as a bank. You may be able to find excellent properties at a lower price.
Excellent Customer Service Leads to New Properties
By providing excellent service, you can improve the word of mouth about your property management business and attract new clients. You'll also increase your ability to take on new properties. Property management software can help you in many different ways: it not only allows you to track data, but it allows you to create reports and see trends over time.
Look for property management software that allows you and your tenants to access data through the same portal, providing a communication and information structure for your business interactions. Software may include features that make it possible for you to accept online payments, automate reminders and data management, and track important information such as repairs, security deposits, leases, and notices to tenants. Look for software that allows you to customize the data that you view so that you can create your own unique searches and reports on property management concerns that interest you.
Plan for Growth
It's important to plan for growth. If you have a goal number of rental properties, think about how you'll manage them before you take the leap. Rental Housing Business magazine says that you need to plan for growth; otherwise, your employees will be over worked, over stressed and could leave. The same goes for your property management systems: get property management software in place before you feel overwhelmed by data.
Adding new rental properties means that you'll have a larger tenant base and may have a more secure income. You're no longer dependent on one or two properties to sustain your business. However, you need to provide well-organized customer service to maintain your edge in the property management industry. Propertyware can help. Take an online tour of Propertyware today.