It was this time last year that my Financial Partners and I closed on our first investment property in Orlando, FL. It was an exciting moment as I was curious how I would handle a long distance investment. The success of this investment depends on how well the Property management team will cover repairs & rehab work and also do the marketing to find qualified tenants.
Previously, when I first started out, I had been so used to doing everything by myself and so I quickly learned to delegate and hold other parties accountable. So far it seems to be working out very well. Communication is key to the success of management of investment properties. When you have a plan in place and the right team members using proven systems, then your chances of success are more favorable.
So, shortly after closing, we got busy and identified the repair needs to get the property “rent ready”. This simply means taking care of any issues with the property from plumbing needs to electrical work. Then we address light-scale work such as painting, new floors, etc. These issues were identified after we completed the property inspection which shows how much this will cost. These factors have to be identified so the funds can be available prior to the work being done.
Many times when investment properties are acquired, unexpected expenses arise which are not accounted for and the company is not prepared financially to handle it. This puts everything on hold at times and delays the potential for cash flow. These repair issues MUST be overcome as soon as possible so that the next phase can begin which is to find the next Qualified Tenant/prospect.
So, then, at the next phase of marketing for the qualified prospect, the property is ready to move-in. This is the part where most “Landlords” either fail or want to call it quits. Management of the investment is crucial to the success of your Investment business. Most Landlords don’t want telephone calls at 11pm to come out to address tenant issues, such as getting raccoons out of the crawl space or repairing a furnace in sub-zero temperature.
As additional investments are received in your portfolio, it would definitely be a cumbersome task to attend to all properties TIMELY and then expect to keep Quality tenants. Delegation of duties comes into play which would behoove Investment property owners to have several Contractors available OR have a Property management staff to serve as a buffer between You (Investor/Owner) and the actual tenants that occupy your properties.
Entering into Year#2, we are in the planning phase to acquire the second investment property. This property will be in my local area and will not be any different in terms of any direct hands-on approach. Instead, I have embraced the “Team Approach”. My philosophy is that a Business with a team will service customers & clients with greater customer service than the entrepreneurs who do everything on their own.
With a clear visionary mindset of the future in place, we can achieve and accomplish many things. It took several years of studying and planning just to get to this point and now it’s all about taking things to the next level with more accuracy and efficiency.