Just like being successful in school, you needed the 3 R’s of Reading, ‘Riting, and ‘Rithmetic, you need the 3 R’s of Property Management for success in a Buy and Hold Investment Strategy.
Renting – The obvious reason for holding property is for cash flow. It is imperative the property does not sit empty. An established Property Management team makes this happen. For example, my company, Real Estate Services of SWFL, LLC currently manages 62 properties and we have 100% occupancy. Our cleaning, maintenance and leasing teams all work together to get the rental ready and place a tenant as soon as possible.
Retaining – A rental costs money every time a property is empty. There is nothing worse than going to collect a late rent payment and finding the property abandoned. My team drives by the property at least twice a month to actually see the property from the outside. The owners receive verification that the property is occupied and being maintained. Once a quarter there is an internal inspection or more if problems were spotted on the drive.
Renew – It costs money to advertise and get the right tenants in place. A much better plan is to offer the tenants customer service on rent collections and maintenance. Our team would rather renew a lease than needing to do a cleanup, possible painting, advertising, interviewing prospective tenants and then writing a new lease. It is so much easier to renew a lease with the current tenant. Also, keeping a good tenant is much more valuable than needing to find a prospect who is a stranger.
A well planned and managed property management business is a win-win-win situation. Tenants are kept happy, property management is easier to maintain and best of all, the Owner/Investor has positive cash flow!
Broker/Owner, Investment Property Consultant
Real Estate Services of SWFL, LLC