How to Manage Your Property Like a Boss
IntroductionDo you know that the majority of those who count the cost of acquiring a property fails to include the cost of property management? In real estate, acquiring property is like the ABC of the game. Trust me, you don’t want to know just ABC. You’ve got to know about it, down to the XYZ. Property Management is the XYZ of the game and in this playing field, you don’t want to be at the receiving end, the receiving end of losses. Especially losses that can easily be avoided, right? If you are new to the term property management, don’t worry, we’ve got you covered. Read Investopedia’s article on it. If you’ve done that already, come with me quickly. In this post, we’ll explain why managing your property is important, explain how to manage your property, and provide some suggestions if you’re new to managing your property.
What is Property Management, and Why Does it Matter?Property Management is a process that involves maintaining, controlling and operating a property, such that it doesn’t lose value. And according to Wikipedia, it is also the management of personal property, equipment, tooling, and physical capital assets that are acquired and used to build, repair, and maintain end item deliverable. Listed below are some of the few things you should know to manage your properties properly.
Knowing your PropertyYes! That’s right, Know what is in your possession. No detail should escape you when it comes to the property you possess. It would be a costly assumption to think the home you’ve had for the past 10 years is still the same now as when you first had it. Normally, some components of your property won’t function as new. You must make sure that you are up to date on what needs repairs and what does not. So how do you do this? Practice routine maintenance. You can break them into 3 parts;
- Weekly maintenance
- Monthly maintenance
- Yearly Maintenance
Create a Financial StrategyThis is what you want to do next. You don’t want to waste all that time, cash and energy maintaining your property for maintenance sake. You want to make sure you get a high-quality return on investments (ROI). so as you carry out your maintenance strategy, including a financial strategy. Get a clear picture of how much your property will be worth, understand it and then plan. This will help you discover easily how much you should budget for managing and how much your turnover will be. On a lighter note, some factors often influence the value of your property, such as;
- The location
- The size
- The level of luxury