Building a property portfolio is one thing, but managing the property portfolio can be a completely different story. Thankfully, we're going to cover property portfolios and how to manage them properly (without the headaches that come with property ownership). With this being said, here's a look at managing property portfolios.
View Property Differently
When it comes to property portfolios, it's better to look at them from a landlord's perspective. Would the property be better for someone looking to buy or rent? Regardless of where it stands, the property should be marketed in such a manner.
Although this conundrum may not apply to individuals who are developing their portfolio, the surrounding area of the property should be considered. For example: where it's located, nearby transit/transportation, and what type of market would the property appeal to.
Do Your Homework
When it comes to your portfolio, make sure you do your homework. Find out how much people are paying for their property (in the vicinity of your property) and get to know the locals. Consider the demographics, if there's a nearby college in the area, or if young professionals occupy the area. Small things for consideration (such as families looking to settle down in an area) are fairly important when it comes to putting together your portfolio.
Don't Do It Yourself
Some people want to handle repairs on their property to save some money. However, this couldn't be further from the truth... as technical matters (such as property repair) require a professional. Whether it be plumbing, electrical, or simple structural repair, hiring a professional for repairs is necessary so you can focus on the business end of your property.
Don't Make Brash Decisions
Think things out when it comes to property and never jump the gun. Explore past and current information regarding the property so you can get a sneak peek of where its headed. Diving head first into a last minute purchase can be very costly, so speak with locals and fellow professionals before claiming stake in a property.
Don't Long Distance Purchase
Unless you plan on visiting the property yourself, don't buy property that's miles and miles away. This is especially true when it comes to purchasing property you haven't seen yet... as it may not be what was advertised. So if you plan on buying long distance property and have a reliable source to investigate... you may have a way to work around the issue.