According to the Internal Revenue Service, about 10.6 million American tax filers generate income from rental properties. Are you now among them? As a property owner, it's essential to follow proper real estate asset management best practices.
Otherwise, you could miss the chance to generate revenue. Your property could sit vacant, costing you money.
Not sure how to maximize your earning potential and reduce property management costs? Read on to discover essential techniques today!
Insure Your Real Estate Investment
Before following the rest of these asset management strategies, insure your real estate investment property. Landlord insurance can feel like an unnecessary expense. However, it can give you peace of mind after an incident.
Otherwise, a natural disaster can destroy your source of income. In 2022, property damage accounted for almost 98% of homeowners insurance claims (Insurance Information Institute).
Make sure your policy is up-to-date. Consider requesting that tenants obtain renter's insurance before they move in.
Explore Real Estate Market Trends
Research Texas' landlord-tenant laws to remain compliant. These laws cover:
- Late fees
- Rental applications
- Tenant screening
- Landlord disclosures
- Security deposits
- Termination and eviction rules
- Tenant rights to withhold rent
If you encounter legal trouble, consult a property management company or lawyer. They can help you avoid fines and lawsuits. Keep track of changes to local, state, and federal laws.
Reduce Property Management Costs
Streamline accounting practices to improve your profitability. Consider:
- Implementing a digital management system
- Regular financial reporting
- Maintaining separate bank accounts
- Planning for major expenses
Working with a property management company can help you secure your financial future. You can recognize strategies for protecting your assets and maximizing your profitability.
Screen and Retain Renters
Develop a property marketing strategy to find renters in Houston, TX. Effective strategies include:
- Content marketing (including video tours)
- Search engine optimization
- Paid advertising
- Social media marketing
- Email marketing
A property management company can create and review your campaigns. They'll ensure you reach ideal renters, expanding your tenant pool.
After attracting renters, develop a screening process. Avoid renters with a history of evictions, property damage, and late payments.
Try to retain renters to improve your occupancy rate. Retaining reliable renters will reduce the cost of marketing and tenant screening. Improving your occupancy rate will boost your ROI.
Hire a Property Management Company
Partner with an experienced property management company in Houston. Use their proven strategies and services to maximize your profitability. A full-service company can assist with:
- Property marketing
- Tenant screening
- Evictions
- Maintenance and inspections
Choose a company that uses property management software. Streamline processes with automation to save time and money.
Ensure Better Real Estate Asset Management
Better real estate asset management can ensure your success in today's competitive market. Use these best practices to maximize your profitability. Remember, you can always ask for help with your real estate portfolio.
PMI Bear Creek uses state-of-the-art technology to offer top-notch property management services. We're part of a franchise that's been perfecting the industry for nearly 20 years.
Trust our commitment to adding value through accuracy, honesty, and communication. Contact us now for a free rental analysis.
