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How to Make a Successful Investment
Property |
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The commonly used
adage is that location is the determining
factor in whether your real
estate investment property succeeds
or fails. While having a great location
does allow you the ability to initially
charge a tenant more, it is only one
of many variables that will contribute
to the overall financial success of
your property. Clifford Hockley’s
July 18, 2006 Realty Times article,
“Make Your Real Estate Investment
More Successful,” offers a
list of six vital components to implement
in your investment property.
The first thing your property should
have is personality. “This means
it pays to keep it modern and cutting
edge. Ask a decorator and landscape
architect to help you. That $2,000 investment
will be a payoff when you receive higher
rents and longer term tenants.”
From installing new carpet to offering
modern conference rooms, there are numerous
ways to give your property
personality.
The second component, emotion, is associated
with the property’s personality.
Emotion is what drives a residential
or commercial tenant in their decision
making. The relative location of the
property to friends, family and neighboring
attractions is only one element in evoking
emotions. “The owner of the property
has a responsibility to help fill that
emotional need by keeping that property
in first class condition: Wash the windows,
clean the common area lights, paint
the hallways, stripe the parking lot
and remove the weeds in the landscaping.”
Dedicated customer service is essential
towards making your tenant feel happy
and appreciated. “Have a yearly
holiday party. Give the tenants an opportunity
to feel like they belong to the community.”
A little extra effort in making your
tenants feel welcome can go a long way
when it comes to renewing their lease,
thus adding to the success of your property.
One of the most obvious aspects of real
estate property management is to
maintain a pristine property condition.
This is not limited to the building’s
appearance. “Don’t let the
roof leak, don’t let lights burn
out, don’t allow potholes in the
parking lot and make sure the common
area restrooms are clean, in great condition
and nicely decorated.” A limited
number of parking spaces will also drive
down the value of your property.
Whether you own a residential or commercial
property, it is important to have a
compatible tenant mix. You do not want
to have an office rented out to a telephone
company underneath a company that bends
steel. The noise will disrupt and anger
the telephone company. “The same
is true in a retail environment where
putting a church next to a tattoo parlor
does not work very well.”
Understanding the finances of your property
will lead to success. This is the sixth
and decisive step. “Compare your
income to properties that are similar
in your general area. Do the same with
expenses.” This will allow you
to better market your property and offer
comparable if not better prices than
the competition.
Doing the little things is often what
makes a successful property. Constantly
adding little upgrades and amenities
gives your property a modern feel and
shows your tenants that you want them
to fell comfortable and appreciated. |
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