Real estate is one of the most important investments you will ever make. Not only does real estate provide you with a home to live in, but it's also one of the most stable forms of passive income. While many people choose to invest in single-family homes or vacation rentals, others search for alternative options. For some, multi-family properties are one of the best types of real estate investments. So what constitutes a multi-family property, and how do you ensure your multi-family investment property will be successful?
A multi-family property is a residential property featuring more than one home. This can include duplexes, triplexes, or even large apartment complexes. So many different types of multi-family properties are available. Investors can find plenty of opportunities to generate substantial profits. If you are searching for your next multi-family property, you will want to do everything possible to ensure your investment succeeds. Here are some of the best ways to successfully manage your multi-family investment property.
Don’t take on more than you can handle
Do you have the budget to hire a property manager or keep a maintenance crew on staff? If you do not have the budget for these things, you should avoid purchasing an apartment or condominium complex. Even if you devote all of your time to maintaining your properties, there aren't enough hours in the day to fulfill all of the maintenance requests, run the properties, and keep everything organized. Start with what you can handle. For many, a duplex or a triplex is a great starting point. Some landlords even choose to live in one of the units and have their tenants pay enough rent to cover the mortgage. This can be a win-win if you want to save even more money per month.
All in all, take on what you can handle. You can always purchase more properties as you increase your net gain.
Pay attention to your cash flow
Pay attention to your cash flow and figure out where your expenses are going. You always want to make sure your profits outweigh your expenses.
Keep a positive relationship with your tenants
Give them what they want. If your tenants request extra amenities, such as new appliances or a yoga studio, do what you can to accommodate them. Your tenants are always willing to pay more if you give them the features they want. By keeping a positive relationship with your tenants, you are far more likely to attract tenants who want to take care of your property and stay with you for years to come.
Take care of maintenance requests promptly
Depending on the size and scale of your operation, you are either on call to do the repairs yourself or have a maintenance crew who can handle service requests promptly. It's also important to remember that some service orders take higher priority than others. If your tenants are without electricity, especially during the summer heat wave, this is a massive problem. It will make the unit uncomfortable, and living without air conditioning in the summer can be dangerous. Take care of your tenants' maintenance needs, and you will establish yourself as a reliable, trustworthy landlord.