Over the course of the year, we have had the chance to talk to a few real estate professionals who managed to double their portfolio and automate their business during this year. We took their experience, studied upcoming trends, and created this 2020 guide for landlords. Here are 20 things that landlords should do in the upcoming year:
1. Automate your rental business
If you haven’t yet, you should find a good property management software to help you automate your business. From receiving rental applications to signing lease agreements, a digital property management system is a useful tool for DIY landlords with more than one unit.
2. Delegate the tasks
Delegate or outsource some of your tasks (for example, maintenance requests or rental applications), so you can focus on other important things. You can outsource many tasks for a relatively low cost to a third party or hire someone to handle it for you either part or full time.
3. Start recording personal and business achievements
Keep track of your personal and business accomplishments to see how well you’re moving toward your goals throughout the whole year. Having a reminder of your business achievements helps to evaluate your career progress over time, and it can help you make a list of realistic expectations and plans for 2020.
4. Upgrade your time management skills
By improving your time management skills, you can accomplish more tasks, increase productivity, and lower your stress level. It might seem difficult at first, but once you stay away from distractions, you’ll see how many tasks you can complete in a shorter period of time.
5. Renovate your rentals
Rental renovations will help you to make more money on your rental properties. Moreover, thanks to timely home maintenance, you’ll prevent expensive repairs and attract more quality renters. There are plenty of renovating ideas you can implement to add property value: installing new kitchen appliances, upgrading the landscape, adding seasonal decorating. Just choose the most affordable and effective way to renovate your rentals in 2020.
6. Allow pets in the rental
To increase your occupancy rate, reconsider the “no pets” policy. Since about 60% of renters have a pet, allowing pets in your rental will bring you more potential tenants and therefore boost your rental business. The tenants who own a pet usually tend to pay more, so they won’t mind paying a security deposit in case their pet damages your rental.
7. Consider eco-friendly solutions
During the eco-friendly era, it makes perfect sense to support sustainability initiatives. Try to utilize recycling programs, energy-efficient solar panels, and environmentally-friendly alternatives to heating and cooling systems.
8. Secure your rentals
Put an emphasis on security this year. Double-check whether your rental properties meet security standards, and consider adding removable smart home tech like a remote access alarm or a digital deadbolt.
9. Create a monthly budget
Create an accurate monthly budget to get the full picture of your potential earnings and analyze your financial situation.
10. Keep track of expenses
By keeping track of monthly expenses, you can optimize your business expenses and learn how to save more.
11. Set money aside
Save money for an emergency. Putting aside even 10% of your monthly income will help you save a reasonable amount of money in the long run. Whether you want to become financially independent or make some purchases, setting money aside is always a good idea.
12. Improve your communication with tenants
The key to maintaining a healthy tenant-landlord relationship is clear communication. Try to improve your communication skills to better understand your renters. Sending a welcome package can be a nice gesture that will help build a good relationship with your renters from the very beginning.
13. Keep up with tech trends
Stay on top of the latest tech trends to be ahead of the competition in the rental market: use digital tools including online payment methods.
14. Analyze the market
But following technology trends isn’t enough. You should also analyze the rental market to get familiar with your target audience, rental prices, innovations related to single-family and multi-family housing.
15. Be aware of tax deductions
The real estate rental category allows you to deduct more taxes than other categories. By learning which deductions are available to you, you’ll get your full benefit.
16. Read property management blogs
The time spent checking out articles and blog posts will pay off. There are numerous resources for online self-education, you’re sure to find something useful for you.
17. Listen to real estate podcasts
If you’re not really fond of reading, you’ll probably enjoy listening to podcasts covering real estate and property management topics.
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18. Develop a business mindset
Once you succeed in developing a money-oriented mindset, you’ll be able to better manage your rental properties.
19. Stop procrastinating
In order to develop a profitable business, you must make quick decisions and establish endless business strategies. There’s no room for procrastination.
20. Get familiar with rental laws
Have the right policies in place and understand your responsibilities as well as landlord-tenant laws.
Is there anything else on your to-do list for 2020? Share your ideas by leaving comments below.