The global real estate industry had over $9 trillion dollars in value as of 2020. Every real estate business owner wants a piece of this pie. However, today’s real estate industry is fast evolving. Constructing rental units and enjoying rent checks is not all there is to making money and growing your real estate portfolio. Here are four fast-track ways to grow a real estate portfolio.
1. Periodic Maintenance
Like every business, portfolio success depends on the customers, in this case, tenants. Keeping tenants happy is synonymous with tenants staying longer, affording you a sustainable revenue stream. One of the easiest things to put off tenants is a property with no maintenance culture. Investing in a portfolio demands you to be interested in the welfare of tenants and their needs.
Maintenance can also be an understated money saver. For instance, fixing a leaking roof as early as possible saves you the cost of replacing affected items in the long run. It also saves you the back and forth legal stress if tenants sue you. You can have an internal maintenance team on standby attending to maintenance issues. For example, you can periodically hire commercial metal roofing contractors for all your tenant’s roofing issues.
2. Effective Marketing
Putting up a real estate property costs money. It costs even more money if you have a fleet of real estate assets without tenants to fill them. You’ll need to be paying facility managers to keep the property intact. The pressure from lenders to repay your loans might not even worsen things. That’s how much of a life-saver marketing is and its impact on your portfolio’s growth.
Marketing is no easy task, especially in today’s highly saturated and competitive real estate market. Marketing experts reveal that apparent speakers start their hunt with a Google search. You can imagine the opportunities you may be missing out on if your vacant properties don’t appear on the top rankings page.
If you’re a portfolio manager, SEO is one of the best places to look for marketing visibility. Investing in virtual reality trends to give prospective buyers a good view of your properties can also provide scalable results. Ultimately, portfolio managers need to consider marketing on all platforms and invest in effective marketing teams and strategies. If a billboard ad is the difference between an occupied property and a vacant one, it’s worth the shot.
3. Timely Collections
Late payment is a common challenge many portfolio managers face. Some tenants can default on payments for as long as possible if there are no measures to manage this risk. Portfolio owners can solve this issue by admitting tenants with credible rental payment histories. It helps to sort out and admit prospective tenants with less risk. Compliance mechanisms like reporting bad tenants to authorities can also be a great alternative to make tenants more accountable with payments.
4. Manage Expectations
Sustainable revenues and long-term tenant relationships are key real estate portfolio growth indicators, especially when housing demands decline. Attracting and retaining today’s tenants can be daunting. They have a short attention span and can access new offers within a short time. Listening to customers, personalizing amenities to their needs, and prioritizing recreational spaces can be a great way to ramp up renter retention.
Generally, building a strong real estate portfolio involves a lot of planning and strategizing. As a portfolio manager, you’ll need a consistent evaluation of your assets in addition to these tips to keep growing your real estate portfolio.
