Are you ready to start scaling your rental real estate portfolio?
It's important to start thinking about this step from the start. Keep an eye out for properties that have a better chance at appreciating. Look at neighborhoods that are poised for rising property values.
Let's explore these ideas even more in this quick guide to portfolio management.
Find a Property Management Company You Can Trust
Buying one property is one thing. However, if you're serious about growing (and scaling) your rental portfolio, you should work with a property management company from the beginning.
For example, a real estate expert from Provident can help you find properties with the most potential for higher property values. They'll also ensure your units are filled so that you don't pay the costs of vacancies. You can also unload properties from your portfolio through seller services.
The above points speak to the importance of using a full-service property management company for your portfolio.
You enjoy the benefits of the following services:
- Property marketing
- Property maintenance
- Tenant screening
- Rent collection
- Accounting and financial reporting
Investors also have access to three real estate calculators for estimating rent vs. sell amounts, return on investment (ROI), and vacancy loss.
Set Clear Goals
You must set clear objectives from the start. This step will help you secure the financing and timetables you need to scale efficiently and consistently.
For example, once you buy a rental property, you want to fill that vacancy as soon as possible to avoid vacancy loss. You may need to secure a loan to help you pay for the next property as you wait for your first property to be filled. If you're going this route, you will have to write a business plan for a bank or improve your credit before applying for a loan.
Next, think about how much money you want to make from rental properties. Build your game plan around achieving that number.
You'll need to do more than just fill vacancies. Consider expenses that cut into profits, like repairs, marketing, and more.
Why Tenant Screening Matters to Portfolio Management
Great tenants generate profitable portfolios. You worry less about unpaid rent, property damage, and frequent tenant turnover. Thus, you need a thorough tenant screening solution.
The above point proves again the importance of partnering with property management.
An experienced property manager will follow these steps to ensure you have the right tenant:
- Interviews with potential tenants
- Credit and income checks
- Criminal background check
- Reviewing past rental history
Your property manager should call past landlords to get a clearer picture of leads' histories with rent collection and behavior.
However, it's also important for investors to ensure good tenants are happy by providing clean, upgraded units with working plumbing and HVAC systems. You also need a reliable property maintenance solution that responds quickly to property repairs and emergencies.
Start Your Property Portfolio
Keep these ideas handy as you start brainstorming your real estate path. Remember the importance of working with a reputable property management company. Set goals for your portfolio and invest in quality tenant screening.
Provident Rentals wants to help you achieve your goals with portfolio management. Contact us today to learn how we can scale your investments effectively.
