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As renters and buyers, we may be frustrated by the uncertainties of the real estate market, but if you understand this and realize the plight of the renter or buyer, the real estate management industry can bring in a lot of money for you. Everyone needs a place to live or to bring their business to life. So, if you can provide tenants with the right combination of housing/spacing and overall satisfaction, it can become a very lucrative occupation. Below is the set of skills necessary to manage the fine line of occupant satisfaction while maximizing your profit and pointing you toward a successful real estate management career.
Marketing & Financial
Knowing your audience is the best way to calculate a marketing budget and design a good advertisement campaign. You need to get the word out about housing or spacing they would love to rent or own. This can be everyone from prospective public housing tenants to people looking to purchase an office building.
If you can market the right property, at the right price, to the right tenants, you’ll have no problem getting rent-paying occupants to fill houses or business owners to purchase office buildings. Understanding your return on investment is crucial to negotiating rental/buying rates to maximize your profit without discouraging occupants.
It may not seem like it when negotiating rent and rates, but keeping your tenant satisfied is protecting your investment. Ideally, you want the highest rent possible, but keeping a happy tenant through fair rent practices, lease rules and regulations, and communication will not only incentivize a renter to provide rent consistently, but it will also make a renter want to continue paying rent to you for a long time.
Doing the little things like paying attention to tenant needs and renovations can go a long way toward keeping a tenant satisfied and paying you to stay. Client satisfaction means a better return on investment for your property, as the more time your investment spends occupied means more money in your pocket via a steady rental income.
Property and facility management plays a pivotal role in real estate management. It should go without saying that occupants won’t stay long and keep paying rent if the toilet and shower don’t work. You’ll have a hard time even finding people to occupy your property if your stove is broken and there isn’t even a refrigerator. Renovations, upkeep, and preventative management of your property are a must-do for real estate — not only for the client but when done properly, will even increase the value of your property.
It is well worth spending the money for renovations that will give your property more value in the long run. A bathroom remodels or a replacement for the windows will go a long way to attracting and satisfying tenants or buyers. It also means you will have a bargaining chip during negotiations for a higher rent rate.
Administration and Risk Analysis
Proper record keeping and tax reports on everything done on your property is not only prudent to keep on file but can save you money on the renovations done to your property. The effective handling of administrative duties can help you to save money on operations such as mortgage refinance, contractor finance, and construction loans. Also, in the case of tenant discrepancies, it is helpful to have filed for a documented answer to disputes.
Risk analysis skills are needed to assess the proper rates and transactions with tenants, owners, and deciding renovation costs. Do questions arise such as “Does your property really need that pool? Or will it just become a burdensome, money draining pit?” A better investment could be landscaping or a kitchen remodel.
Whether renting or selling, occupant satisfaction is key to a lucrative to real estate management. Proper upkeep and advertisement of your property will attract renters or prospective buyers. Maintain the satisfaction of your occupants and keep your property updated, and your occupancy rates will climb steadily and remain high, meaning a consistent and lucrative flow of income for you.
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