Do These 6 Things for Your Investment Properties Today

You’ve probably already got a lengthy checklist of tasks for your rental property - or at least you should. The smartest investors know that their properties must be nurtured and maintained in order to continue producing profits, and with this comes plenty of items for the “to do” list. For this post, however, I’m not talking about trimming the hedges or changing out the furnace filters. I’m thinking of bigger picture tasks that can have a significant effect on your short and long-term profitability. Here are 6 things you need to do for your properties today:

1. Go over the numbers. Crunching numbers isn’t something you only do when you’re thinking of acquiring a new investment; instead, it’s a task that should be done periodically to ensure your properties are performing how you want them to. Gather up the last few months’ worth of data and evaluate the numbers. Have expenses gone up? Have rent prices in the area risen for any reason? Determining the answers to questions like these will help you know that you’re still on track or if you need to make any adjustments.
2. Evaluate the market. After checking out rent prices in the localized area, zoom out a bit to take a look at the broader market. Real estate markets are dynamic, always changing to reflect growth trends and demographics of a given area. Gathering this information can help you plan for the future and decide whether you want to buy or sell in a particular location.
3. Reestablish your expectations. Like the market itself, goals can be fluid. Think about what your expectations are for the coming months, and what you need to do to meet your objectives. Set actionable tasks for yourself that will help you accomplish these goals, and keep them close by so you can revisit them often.
4. Figure out what’s not working. Even the best investors have room for improvement, and so do you. When you think back over the last few months, determine if there are any actions that haven’t worked out as you’d planned. Then, ask yourself if there is anything that can be done to make it better. Chances are, there is. So do it!
5. Tie up loose ends. I promise you, there’s not a real estate investor out there who can honestly claim they’ve completed everything on their task list. Make it your mission to take care of some of that unfinished business. Prioritize what needs to be done, and then do it. No excuses, just do it.
6. Plan for the future. An investor without a plan is like a ship without life jackets. Take some time to go over your plans for the future. Maybe they include renovations of existing properties, or maybe you’re thinking about acquiring another investment. Whatever it is, plan, plan, and then plan some more. Think about the cost, how you’re going to go about it, and the impact it will have on you cashflow, time, and even sanity.

Real estate investment is a lot of work. I’ve never been shy about saying that. Unless you’re working with a great property management group, the day-to-day tasks can seem like a lot. However, the “big picture” tasks should not be neglected, either. Regularly evaluating your investment and how you approach it is important, and the items detailed above are a major part of that.