the-abcs-of-real-estate-investing-ken LifeFeeling

windows, carport damage from moving companies, and wind storm damage all with repair
costs that are less than your insurance deductible. Got the point?
Maintain a reserve fund that is adequate for your property for when the unexpected
happens. Hopefully you never have to use it. It’s hard to set guidelines for how much to put
aside because every property is in a different condition when you buy it. What I do is look
at this condition and flag things like older roofs or appliances that are likely to fail. Then I
put aside additional funds for things that break unexpectedly.
Property management is a 365-day-a-year, twenty-four-hour-a-day job. You owe it to
your residents to be available and responsive. You also owe it to yourself if you are serious
about your investment appreciating and generating cash flow. This is the customer service
aspect of the business and it is absolutely fundamental to your success.
People are social beings. They talk. Word gets around about the great places to live and
the not so great places to live. Make sure the word on the street about your property is in the
great places category. Accomplish that through your actions. Your life may be busy, but it
will be a lot easier.
CHAPTER ELEVEN ACTION STEPS
• Set up your systems for maintenance, accounting, and rent collection.
• Investigate hiring a professional property management company and interview several.
• Run criminal and credit background checks on every new applicant.
• Become involved in local supporting professional affiliations.
• Enforce the policies and procedures in the lease, no exceptions!
• Respond quickly to your residents with a smile.