The end of December is traditionally the time when people make plans for the New Year and make their resolutions. While it is true that many people forget their resolutions as the year progresses, here are twelve resolutions that would ensure the success of any investment at any time of the year.
1 - Review property insurance yearly
This resolution should head the list every year and now is the perfect time to take on this task. While it is important to keep insurance current, you need to keep up with the many changes that affect it. No one wants to find out the coverage has expired or that it is inadequate.
2 - Organize investment tax information
There is no better resolution than organizing your tax information and maintaining records for each continuing year. Begin preparing investment records for your tax person as soon as possible to ensure you do not forget any important deductions.
3 - Review your ROI
Make time each year to review your return on investment (ROI) for each property. If you know what your income and expenses are producing, it can help you plan several other resolutions listed in this article, such as a maintenance plan or possibly buying a new investment.
4 - Think preventative
It is unrealistic to think your investment property will not need repairs. Preventative maintenance may prevent costly and unnecessary major repairs. When planning your yearly budget, create a budget for normal repairs.
5 - Plan for long-term maintenance
Rental property is usually a long-term investment. This means roofs will age, carpets will wear, water heaters can give out, and more. Developing a budget for major expense will help if they happen or there is an unexpected emergency.
6 - Review your investment portfolio
Perhaps this is the year to review selling your property and investing in another. It could also be the perfect time to buy another property to add to your portfolio. If you sell, discuss doing a 1031 exchange before you purchase with a professional who knows the program; you do not want unnecessary taxable gains. Contact us to provide you with realistic rental value for any property you are considering buying.
7 - Review current tenancy
Contact us to discuss your current tenancy periodically. It may be that a lease renewal is pending and you may need to entice a tenant to remain in the property. It could also be time to give a tenant a notice. Knowing what is happening in your property is easier than an unwelcome surprise.
8 - Keep up with legislation
There is always something happening in the courts when it comes to investment property, such as bedbugs, hoarding, mold, etc. We will do our best to keep you apprised of any big developments that can affect you. We want to keep you informed which is why you receive this email newsletter. It is important that you keep up with legislation that can affect your property.
9 - Always follow Fair Housing
Fair Housing affects so many areas concerning investment property, such as advertising, showings, applications, renting, etc. Violating Fair Housing laws and regulations can be very costly for investors. Following Fair Housing is a big key to a successful investment.
10 - Never retaliate
Unfortunately, tenants can do very frustrating and difficult things. Sometimes this leads to angry actions from a property owner. However, it is crucial that a court cannot perceive any action from a property owner as retaliation. This is sure way to lose in court. Discuss any action with your property manager before causing a legal problem or incurring financial loss.
11 - Practice risk management
All of the previous resolutions are common sense. When you think about it, they are also ways to practice risk management and protect your investment. When you take this approach, you increase your potential for a highly successful investment.
12 - Be part of the team
It is important for property owners and property management companies to operate as a "team." We work to protect your investment and it is more of a success when you consider us an integral part of the team. Let us know when you have questions or concerns and we will be happy to help you.
Have a Happy Holiday and a successful New Year.
