The beginning of January is traditionally the time when people are planning their year and making their “New Year Resolutions.” While it is true that many people forget their resolutions as the year progresses, all property owners could benefit by sitting down and making a list of resolutions that would ensure the success of their investment then work to keep them. Here are ten good resolutions for landlords that can benefit their investment portfolio.
Review property insurance yearly
This is one resolution that should head the list every year and now is the perfect time to take on this task. While it is important to keep insurance current, you need to keep up with the many changes that affect it. No one wants to find out the coverage has expired or that it is inadequate.
Organize investment tax information
There is no better resolution than organizing your tax information in the beginning of the year and then maintaining records for each continuing year. Begin preparing investment records for your tax person as soon as possible.
Review Your ROI
Take the time to review your return on investment (ROI). If you know what your income and expenses are producing, it can help you plan several other resolutions listed in this article, such as a maintenance plan or possibly buying a new investment.
Develop a maintenance plan
It is unrealistic to think that investment property will not need repairs. There should be two approaches – one of preventative maintenance and that of long-term replacement. Preventative maintenance may prevent costly and unnecessary major repairs. Plan your yearly budget for minor repairs. Developing a plan for major replacement will help you budget for when they are necessary or possibly prepare for that unexpected emergency.
Review your investment portfolio
Perhaps this is the year to review selling your property and investing in another. It could also be the perfect time to buy another property if the market indicates prices are right. Be sure to consult us on the current rental market before you invest. Explore doing a 1031 exchange with a professional who knows the program.
