Investing is an important part of getting rich, and there are many ways for people to make their money grow. For instance, residential real estate is a powerful investment that gives owners much control over their financial future.
Buying properties to get a return on investment (ROI) over time is part of real estate management. This return can come from rental income, land value growth, or a mix. Investors have much power over real estate, which makes it very appealing.
Let’s look at how this wealth of influence shows up in different areas of investing in property management.
Add More Rentals to Your Property Management Portfolio
You can make more money as a property manager by getting new renters. Property management clients pay you a flat fee or a share of the rental income. Having more rental properties means you have more ways to make money. It’s really that simple.
Making your business bigger can be done in several ways. You can look for brand-new clients or, even better, take care of more rents for your clients.
But it’s easy to feel stressed when you have a lot of properties to take care of, especially if you’re new to the property asset management business. That’s why it’s so important to grow slowly and carefully.
Expand Into New Rental Markets
Property managers can make more money by moving into new states and towns. Indeed, most pros start in their area and add new workplaces as their teams grow.
If you choose this way to make more money, you must carefully plan your steps. One important thing to consider is getting into the best areas for long-term and short-term rentals. Property management services don’t make sense in places where people don’t want them and rental incomes are low.
If you are in charge of vacation rentals, you should also check out the places that don’t have any rules against certain rental accommodation platforms. This opportunity is what your business needs to grow.
Increase the Rent
Some property management companies charge a flat fee, while most charge a fraction of the rent money they get each month. In other words, most property managers get paid based on how much money they make for owners or rental accommodation hosts based on the rates. So, the first thing you can do to make more money is to charge more rent.
Still, raising rent could cause people to leave, which would mean more empty apartments. But keeping the rent the same for a long time will stop your business from growing. Inflation will also catch up with you in the long run. So, getting more renters and keeping the ones you already have is possible if you plan and follow the process.
Leverage Technology
The things you have to do to be a good property manager can take a lot of time and stress you out. You have to deal with requests from both tenants and property owners at the same time. But there is good news: you and your team can use different rental property management technologies to get more done and stay ahead of the competition.
Tech-enabled property management tools have made it easier for landlords and tenants to talk to each other, deal with repairs, make payments, and even get rid of tenants.
Manage Both Rental Property Types
The vast majority of property managers deal with both long-term and short-term renters. You can stand out by caring for two types of rental homes. For owners who own both rentals and want to work with just one property management business, this will help meet their needs.
But before you move forward, remember that the rules for regular and holiday rentals are very different. So, before you grow your business, you should learn a lot about the goals and best practices.
Not meeting your client’s needs is the last thing you want as a property manager. You don’t want them to leave your company. It will have the opposite result of what you and your coworkers want: to make more money.
Offer Additional Services
As a property manager, you can make more money by giving your renters and investors extra paid services. You can offer services like inner and exterior design to people investing in real estate. People who own furnished homes and vacation rentals but are just starting and don’t have access to design and furniture companies will like this choice.
You could also hire the right professionals to do the maintenance and repairs on your building in-house. This way, you can keep more of the money you make from managing properties for yourself instead of giving it to sellers and contractors.
That being said, not all property management companies help with paying property taxes and giving advice on how to get rental property tax breaks. That’s another area where you can improve and make more money every month.
You can also offer more services to renters, whether they are long-term landlords or short-term guests. For example, if you work with long-term rentals, you could offer cleaning, laundry, dry cleaning, and other services. Your business will make more money if you frequently charge a small extra fee.
If you manage short-term rentals instead, you can offer Airbnb experiences and the rental room. For now, many guests want this, and it will also help your manager listings rank higher on the Airbnb site.
Specialize in Different Property Types
Altering the kinds of homes you take care of is another way to help your property management business grow. You can look into condominiums, apartments, and townhouses if you are only interested in investing in single- or multifamily homes. Also, you might even consider going into business property management if you have the skills.
Like what was said above, make sure you only grow your business when you’re ready to. Before you start, ensure you know what you’re doing and understand each new property type’s unique needs and requirements.
Grow Your Money with Property Management
Property management is a great way to build wealth because it gives you power over certain markets, properties, and management strategies. They can also give you tax breaks and the chance to make money without doing anything.
Unlike other ways to make money, investors in rental homes can take charge of their financial future. It usually gives you less control and not as many financial benefits.
So, if you want to explore property management further to grow your wealth, you can check out LongView. They can offer you support about the changing markets of real estate properties and the latest technology to catch up with the trends. With their help, you can navigate the endless opportunities that property management brings.