Real estate investment remains a substantial investment opportunity for seasoned and upcoming investors alike. This type of investment is suitable for portfolio diversification and is mostly very profitable because real estate enjoys year-round demand.
However, securing an investment property is only the first step in your real estate investing journey. Your properties must be managed appropriately, ensuring that your assets are kept safe and well-maintained. This way, you can enjoy long-term monetary benefits from them, making your investments worthwhile. Below are specific tips for managing your property investments effectively.
Hire a property manager.
Managing real estate investments on your own can be demanding and overwhelming, so several experts advise outsourcing this task to a reliable property manager who can handle your investments while you attend to other essential matters in your daily life. A property manager can be your collect rents, find tenants to fill vacancies, handle repairs, and fulfill other roles as well for a simple management fee.
However, your property manager’s scope of responsibility will largely be determined by your instructions, so you should think hard about which roles you’ll want your manager to fulfill. Also, hiring a property manager can be costly, so it’s worth considering the financial pros and cons to decide if employing one is best for you. Great asset managers are undoubtedly necessary to oversee your property investments. Reliable property managers such as Venterra Realty can help with this need.
Venterra Realty is the owner and manager of not less than 62 apartment communities in 11 major U.S cities, providing housing to over 33,000 people and 11,000 pets. John Foresi and Andrew Stewart established Venterra in 2001 to offer top-notch property management services to clients in the southern United States. Venterra specializes in identifying, developing, financing, acquiring, and managing multi-family apartment communities. Venterra CEO John Foresi credits his organization’s success to dedicated, caring, and passionate employees who always deliver their best. Venterra team members remain committed to all their core values, improving residents’ lives by providing an industry-leading customer experience. What’s more, Venterra self-manages to maintain high-efficiency standards beneficial to residents, employees, and investors.
Pay your taxes.
Fulfilling all your tax obligations is crucial to manage your real estate investments properly, so prioritize this. Regardless of which properties you invest in, you’ll undoubtedly owe property taxes, most likely yearly. If you own rental property, these taxes can be confusing due to your property doubling as a business, so you should look into exactly how much you’re required to pay. Since you may be too busy to keep up with these payments, many experts recommend hiring a skilled accountant with the right knowledge of investment property tax law.
Your accountant will help you understand which deductions you can and can’t take, remaining compliant with IRS laws. Also, an accountant will stay on top of all your due payments date, alleviating you of your tax fulfillment stress and allowing you to focus on acquiring other investments.
Use a Yieldstreet account.
When investing in other asset classes, it’s always prudent to access the most reputable platforms to ensure your investments’ safety. Trusted alternative investing platforms such as Yieldstreet can help with these concerns.
Yieldstreet is a crowdfunding platform offering investors several alternative investment options, including fine art collections, consumer finance, real estate, vessel acquisition, and commercial finance. The Yieldstreet platform is open to you if you’re an accredited investor only, meaning you must have a net worth of at least $1 million (excluding your primary home). Alternatively, you must earn at least $200,000 yearly individually, or $300,000 combined with your spouse, to access this platform. Yieldstreet offers a low minimum investment of $10,000 to investors, lower than several other platforms. Yieldstreet investors can also look forward to the Yieldstreet Prism fund, a close-ended fund with an investing period of about 48 months.
This fund gives investors more exposure to diversification, albeit at the price of higher fees. The question on the minds of many potential investors is, “how safe is Yieldstreet?” The platform’s founders and managing executives are high-profile, recognized entities in alternative finance and technology entrepreneurs. Yieldstreet also has the financial backing of investors like George Soros via a substantial credit facility. What’s more, the platform has returned over $500 million to investors throughout 2019, so it’s undoubtedly a haven for alternative investing.
Always prioritize maintenance.
Regular maintenance is also vital to properly managing your investment property, so keep this in mind. Maintenance is essential if you own rental properties, as the law requires you to keep the property compliant with strict health and safety standards. Also, well-maintained real estate properties quickly attract tenants, so maintenance is vital. Consequently, consider hiring helpful maintenance services and master electricians to keep your property in top shape. From gardeners that maintain greenery to a residental electrical contractor that handles all your electrical needs, your hiring process should be guided by the pursuit of excellence.
Managing property investments is equally as important as acquiring them to preserve your assets. The above-listed points are some helpful tips to manage your property investments for the best results.