Learn practical New Year resolutions for investment property businesses.

Read helpful Happy New Year tips for investment property owners and managers.

Unlike typical New Year resolutions, investment property businesses require commitment. If that commitment includes a balanced combination of cheerfulness and seriousness, all the better. In the spirit of balancing New Year cheer with thoughtful reality, the following general framework provides tips for investment property owners and managers seeking worthwhile New Year resolutions.

H omework
A ids
P lanning
P erformance
Y ield

N otice
E mployee
W ork

Y our
E ffort
A ttracts
R esults

Consider areas that merit attention or action, and hone in on them. Continue reading simplified tips suited for three stages of investment property business scenarios.

If you intend to make a fresh start as an investment property owner, do your homework. Read and study what it entails and listen to people who own or manage investment property. Pre-plan and plan. Know how much you are able to invest in the property(ies); how much debt you can reasonably afford; who is going to manage the property(ies), including emergency situations, and at what cost. Be aware of what contributions, including time, you will need to commit, in order to break even and earn a profit.

If you already own investment property and intend to stay the course or further your goals, keep doing your homework. Your eyes and ears should be open to the condition of the property, tenant engagement, and employee performance. Be reachable, whether you are readily available, or you hire someone to be responsibly available. Pay attention to expenses, both operating and capital expenses. Property and liability insurance coverage is a necessary operating expense. Regularly track expenses and keep them in line with income and reserves. Monitor depletion of reserves and establish a plan to replenish reserves.

If you experience financial setbacks in your investment property business, go back and do your homework. Determine the cause(s) of the problem(s), and make adjustments that are reasonable and necessary. You may decide you want to get out of the investment property business. Whatever you do, act responsibly. Inform your lenders of the situation. Some may be willing to renegotiate loan terms.

Appropriate insurance coverage is a must for investment property businesses. No matter what stage you are involved in, i.e. planning to purchase investment property, or owning/managing investment property, or planning to expand or divest investment property, always contact your insurance agent. Promptly notify your insurance agent of changes in ownership or operations.

Richey-Barrett Insurance is a Trusted Choice Independent Insurance Agency experienced in insurance coverage for investment property businesses. Our customers range from owners of single-family residential rentals to multi-unit apartment buildings and strip shopping centers.