The New Year has arrived! A new year is upon us, and around this time we usually stop for a moment and ponder about what the future will bring and what we can do to make it a success. When we usually think of setting a New Year’s resolution, we usually think about getting to the gym or breaking some nasty habit. But goals should never be just for our personal life. We should be setting business and investment goals. So let’s take a look at ten New Year resolutions for landlords.
5 Investment New Year Resolutions for Landlords
Here is a list of the top investment New Year resolutions for landlords that will push your investment portfolio into overdrive.
Investor New Year Resolution #1: Pay Off an Investment Property
If you have less than ten years before retirement, then you should focus your investment cash flow towards being investment debt-free by the time you retire. Focus on the property with either the least number of years remaining on the mortgage or the one with the highest interest rate. Then channel net profits from other properties to paying off the mortgage.
Investor New Year Resolution #2: Consolidate Your Investments
If you are not in a financial position to make extra payments on one of your investment mortgages, you may want to consider consolidating multiple properties into one blanket loan. You can use the total equity in your portfolio to secure a single mortgage that covers multiple investment properties. The loan will allow you to sell properties within this portfolio as long as that portion of the mortgage is paid off. When all is said and done, you may be able to free one property from the mortgage and have one single mortgage payment.
Investor New Year Resolution #3: Invest Up
If you own five or more single-family rental properties, this year may be a good time to invest up into a multi-family apartment building. The purchase price per unit is much less than a single house or duplex. The expenses per unit are also less with apartment buildings.
Investor New Year Resolution #4: Complete Your Estate Planning
You have spent many years buying, investing, and managing your investment portfolio. A critical step is also planning for the future. A future where you will hand over your estate to your heirs. Don’t leave this to chance or to probate court to figure it out. Why not set a New Year resolution to consult with a financial planner before the end of January.
Investor New Year Resolution #5: Don’t Worry about the Economy
“A farmer who watches the clouds never plants.” While it is good to keep your finger on the economic pulse of the nation, this can lead to paralysis by analysis. Waiting for just the right moment to buy or sell often is counter-productive. Often what happens is that by the time we learn of the trend, is has already passed. Don’t get overly worried about what others are doing. Make your buy and sell decisions based on your investment goals and your financial planning.
5 Property Management New Year Resolutions for Landlords
Once you own investment properties and other rentals, there are goals and New Year resolutions for landlords that can increase your cash flow this year.
Landlord New Year Resolution #1: Decrease Your Expenses
There are scores of ways that we can help you to reduce your expenses. When was the last time you took a long and hard look at your property tax assessment? Could it be too high? Are you paying for any utilities? Locked or timed thermostats can save you hundreds. How about installing photo sensors on your parking lot lights or cleaning the ones you have? Even changing to florescent bulbs in the common areas can reduce your electric bill.
Landlord New Year Resolution #2: Increase Your Income
If you have a great property manager (like us here at Victory Real Estate), then your rental rates should be at market levels. That does not mean, however, that you cannot increase your income. Do you have less parking spots than units? How about charging a monthly parking space rental fee? Larger apartment buildings can offer coin operated laundry facilities or vending machines. There are pet fees that pet owners will gladly pay. Have a chat with your property manager to see what would work for your properties.
Landlord New Year Resolution #3: Accept Pets
I know, most landlords hate tenants with pets… but there are a lot of benefits. Tenants who have pets tend to rent the same unit for longer, which reduces your vacancy rate and turn-over charges. They are happy to pay a pet deposit just to bring Fido or Garfield. The benefits nearly always outweigh any pet damage.
Landlord New Year Resolution #4: Review Your Tenant Acceptance Policy
If you are having trouble finding qualified tenants to rent your properties, why not meet with your property manager and review your tenant acceptance policy. Lowering your qualification standards a tad will fill your units quicker and reduce your vacancy losses.
Landlord New Year Resolution #5: Hire a Great Property Manager
If you are reading this blog article and you are self-managing your rentals, then I would like to say that the best New Year resolution that you can make as a landlord is to hire a property manager. You will be shocked on how much time it will free up in your life. Yes, it will cost you a percentage of your gross rental income, but a highly skilled property manager can often recoup that expense through an analysis of your income and expenses. If you own a property in the Raleigh or Wilmington, North Carolina area, we would love to offer you a free virtual rental evaluation.