Real estate represents an extremely important asset class within a diversified portfolio as it is able to offer a relatively stable revenue stream to the investors in the form of rental income. Owning a valuable real estate asset, no matter whether it is a residential or commercial property, comes with both advantages and responsibilities. All property owners have to make many decisions to sustain continuous growth and returns. A property management company like Nelson Partners can be their perfect partner in this process.
Not all property owners can afford to self-manage diverse responsibilities associated with owning a valuable real estate asset. Several of them tend to not be comfortable with the risk involved in the process, as well as the potential for the diminished rewards of owning a real estate asset as a result of self-management. Here are a few important aspects that all property owners must dwell upon in respect to the effective management of their real estate asset:
- Strategic marketing of the property: A well-planned and thought out marketing strategy is critical to sourcing tenants for a property. People need to carefully think about the type of property they want to market, and subsequently formulate a deliberate strategy that caters particularly to the relevant segment of the rental market. For instance, their approach to marketing a luxury holiday rental will be widely different from that of a commercial property. Important aspects to consider in this regard are:
- Who will be the ideal tenants?
- Which digital platforms are best suited to reach the target audience?
- What are the costs associated with advertising on various digital channels?
- Is the property being marketed at the appropriate price point?
- Is there enough time available to commit to a comprehensive marketing strategy?
- Securing quality tenants: Finding the right tenant for a property is important, and people must be prepared to undertake a systematic screening process for the purpose of facilitating the decision-making procedure and reducing the risk to investment. Here are some core elements that need to be considered in this regard:
- What are the selection criteria for prospective tenants?
- Is there any process in place to collect the required tenant documents?
- How will the prospective tenants be vetted?
- Appointment management for property viewing
- On-going Maintenance and Repairs: Being an investment property owner, one needs to have a certain amount of time realistically, along with a few practical skills to be in the position to manage and maintain their investment asset to ensure that it does not deteriorate and depreciate in value. They need to consider who will be looking after the property on a day-to-day basis, and whether they don’t have a resource pool of experienced and reliable suppliers such as electricians, landscapers and plumbers.
Taking care of the tasks mentioned above often ends up becoming a huge burden for the property owners. Hence, it is always better to hire a property management company like Nelson Partners to take care of such tasks. This company specializes in developing, acquiring and managing quality purpose-built student housing assets.