Can you believe 2020 is almost over? It’s no secret that it’s been an intense year, and industries across the board have been impacted by the pandemic. The 3 P’s have been emphasized as all the rage through 2020: Property, Puppies, and Peletons.
Now is the perfect time to reflect on how your real estate efforts have performed, and prep for a successful, dynamic year ahead. In the spirit of Marie Kondo, here’s how to clean out your real estate “clutter” as we head into 2021.
Perhaps the biggest indicator of how your real estate is performing is cash flow. So what should owners look for on the cash flow front?
Start with the big ticket items like mortgage or rent. Is your tenant paying into your mortgage, or are you? Could there be any reasons your revenue is being impacted (for example, the location of your property, age of property, etc.)? If your property isn’t “cash flowing”, consider having a real estate agent do a full analysis to find out if you can do better.
If you want to track growth and success, you should also look at things like monthly expenses and repairs. Ask yourself: Are you paying more into your property than the revenue being generated? Furthermore, are there things you’re putting off that could generate more income and lead to higher rent? These are important areas to evaluate and de-clutter!
It’s crucial to check that you’re seeing growth over time. If you’re not, it may be time to repurpose and relocate that money elsewhere.
Always upkeep your properties and make any necessary repairs and renovations the moment they’re needed. This will keep your property in good standing and help you avoid any problems down the road, for both you and your tenants.
Doing minor updates and repairs to things like flooring, paint or upgrading appliances can increase a property’s value, allowing you to up your rent as time goes by. Remember, most people don't want to bother themselves with renovations, and will pay more for a property that is shiny and move-in ready. This care and upkeep will also make it easier for you to sell the property down the road!
As we wrap up 2020, it’s a great time to reflect on your real estate efforts for the year, and look back at all your decisions (both good and bad). It might be hard to do this on your own, so if the option is available, have a third party review your investments and current real estate holdings.
An expert will advise you on what’s working and what’s not, let you ask any questions, and make recommendations on what changes you can implement going forward.
There you have it! We know this year has been more than eventful, but there are plenty of things to look forward to in the real estate landscape, and we’re excited to see what 2021 brings. Keep these things in mind for 2021: Students, Immigration, and Deals.
Whether you’re looking to buy or sell, or are interested in investing, our team at Amy & Ally would love to help. Get in touch with us today!