Asset management is all about having prepared with systems in place before you decide to close on an investment property. If things are not quite running right around your multifamily property, chances are you will need to cover the fundamentals of asset management that have been neglected for too long.
You should get a property management team involved as early as you can, as it will allow you to keep things under control. One thing you need to remember as an investor is that you’re not a landlord, but an investor. You could play both roles but in the end you would do well to hang back in a strictly investor role if you want to have more time for yourself and to expand your business. Engaging your property manager from the beginning will give you better sub-market information, but in the end bringing them onto your team will make the transition of management smoother and easier overall.
When you get to buy a new apartment building, your job is not to be on site and deal with the day-to-day needs of the tenants. You need to make sure that systems are in place when you get to take over the property. Some questions need to be answered, such as how often collections and delinquencies are being reported, how monthly financials are received, how communications work and so on. Making sure you have all of these covered before moving on will ensure you have most of the issues solved.
You need to make sure you have a good team handling any maintenance requests as quickly as possible. This will have more than a few beneficial effects to it, as the act of dealing with this effectively will ensure you have goodwill with the current tenants, knowing they can count on you to have their back when something happens. The happier the tenants are, the easier it will be for them to react to possible changes in policies and more.
If your management team is not keeping your marketing in top shape, then you may have need for a new manager. You need to make sure all your marketing avenues are used and tracked so you will know what needs to be done in terms of spending. Consistent marketing of your property will ensure you have tenants ready to fill the gaps when someone moves out, so never underestimate its importance. You may also want to get in contact with a moving company so you can combine your efforts, ensuring more business for both when they have to work with clients. Relocation and moving in general needs a moving company, so this type of arrangement would be greatly beneficial.
You need to ensure you have a clear procedure in terms of all your potential tenants. Try calling your property as a potential client, making a test of customer support as well as asking about policies and other details. See whether the team will ask where you found out about the property, as well as other ways they can keep track of marketing in general. Covering these fundamentals will allow you to exercise finer control over the functions of the entire team and to hone their efforts for maximum efficiency.
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