By Lucinda Lilley, CPM®, GRI®
We have asked FBS Vice President, Lucinda Lilley, to present a series of articles “Best Practices for Independent Rental Owners” that will be available in various publications from time to time and become a regular feature at Rent Sense.
Lucinda is a Certified Property Manager (CPM) and a Graduate of the Realtor Institute (GRI). Her 25-year distinguished property management career has been refined with earning these internationally recognized professional designations.
When you own rental property, the beginning of the New Year is an opportune time to study where you have been and decide if you are making the right decisions to get you where you want to be – have you been postponing that deferred maintenance because you can’t figure out how to pay for it? Is it time to think about making some improvements to increase the value of the asset? Have you put off the conversation with your property manager about how your objectives have shifted? Have you taken the time to reconcile your stated objectives with your real goals? Is it time to make a fresh start with new staff and/or Management Company?
To prepare for a New Year of managing rental property a written strategy should be drafted: budgets are drawn and discussed, staff is evaluated for effectiveness, historic occupancy is challenged, Net Operating Income is re-forecast, and expense is analyzed to assure your money is spent in the “right” places. And knowing that your management team is on the same page and operational decisions flow from an approved game plan. Understanding what you want your property to do in the coming year is the necessary first step. A strategy to achieve can be drafted for consideration, evaluation, and approval. A written plan can be implemented and quantified for incorporation into monthly reporting.