In this blog post I share a simple formula for maximizing the cashflow from your midwest city rental properties (midwest city property management). This is the first article of a four part series about information that Midwest City property management companies should be providing you.
But first, I’m a Pruis owner. What I love about my Prius is that it’s so darn predictable. I put in gas and take it to the dealership for scheduled maintenance…and I don’t ever have to worry about it. It just runs and runs without a second thought on my part.
Hopefully, your real estate portfolio operates in a similar manner. At its core, there is a very simple system that should be at work:
Your Properties + Management System = Money Every Month
Like every high performance machine, my Prius has gauges to measure its performance. For example, it has a speedometer, gas gauge, oil pressure sensors, and dozens of other electronic sensors. A light comes on when the engine is in need of maintenance. A light comes on when the brakes aren’t operating up to par.
It’s the same with your real estate money machine. There are certain measurements that must be taken to ensure that your real estate money making machine is making you the money it ought to be making.
That is, there are certain parameters you should be keeping on an eye on. We normally call these reports of one type or another.
It starts with communication. Midwest city property management companies must keep you informed on the performance of your portfolio, property by property.
It’s like being able to see the dashboard of my Prius. How else can I know whether or not I’m about to run out of gas?
Ideally, you should have several lines of communication open with midwest city property management companies. Quick response is the key. Midwest city property management companies should respond to all communications within one business day (maximum). Most of the time, it’s going to be a lot quicker.
Email is good for passing along information back and forth between the property manager and owner. It also lends itself to leaving a nice paper trail (well, email trail I guess). Good records come in handy when either of you are trying to remember details from a project that occurred three months ago. A dull pencil is always better than the sharpest memory.
Text messages are also a good way to quickly pass along information.
However, if you need some interaction to make a decision, an old fashion phone call is the way to go. It’s good to get some written notes regarding what was discussed during the conversation.
Part 2 of the series will present the monthly itemized statements and annual financial statements you should be receiving from your property management company.