Owning real estate investment properties can be rewarding and demanding. And while we spend a lot of time talking about the benefits and ROI, our industry doesn’t do enough talking about the challenges and demands that are hidden behind the scenes.
If you’re feeling overwhelmed by the day-to-day responsibilities of managing your properties, it’s important that you don’t just ‘suck it up’ and deal with it. You need to find practical strategies to reduce or eliminate these stress factors so you can make owning these properties a more rewarding experience.
6 Tips for Reducing Stress
As a landlord, stress can be a good thing. However, too much stress actually inhibits your ability to be productive and serve your tenants well. With this in mind, here are several steps you can take toward fighting back against stress.
1. Automate What You Can
One of the first steps you can take to reduce stress is to automate as much as possible. Think about the regular tasks that consume a lot of your time but don’t necessarily require your personal touch. This might include scheduling regular maintenance, collecting rent, or even sending out reminders to tenants about lease renewals.
There are several software solutions designed specifically for property management that can automate these processes for you. By setting up automatic systems, you free up your time and reduce the chances of things slipping through the cracks.
2. Hire a Property Manager
Better yet, try hiring a property manager. If the daily tasks of property management are too burdensome, this decision will provide instant relief (and might even result in better overall service to your tenants).
A property manager can handle everything from finding and screening tenants to handling lease agreements and maintenance issues. While this does come with a cost, don’t underestimate the time and stress it saves. Ultimately, having a property manager on your team allows you to focus more on the strategic aspects of your investment, like looking for new opportunities or optimizing your current portfolio.
When hiring a property manager, be discerning. Don’t just hire the first name you run across. Instead, look for a company that specializes in your niche. For example, if you own an office building just outside of Hollywood, don’t hire a national residential property management company. Hire a Los Angeles commercial property management company that knows your niche and location.
3. Establish Clear Communication Channels
Show us a landlord who prioritizes communication and has an intentional approach to how he interacts with tenants, and we’ll show you a landlord who is in total control of their investment portfolio. That’s because effective communication is the heartbeat of productivity, efficiency, and ROI.
For best results, set up clear, straightforward methods for your tenants to reach you, and vice versa. This could be through emails, text messages, or a dedicated phone line. Also, consider using online portals where tenants can log maintenance requests or complaints. This makes communication more manageable and helps you keep track of and document interactions. (This can be useful in case of disputes).
4. Regular Maintenance Checks
Keeping up with regular maintenance can prevent larger, more stressful problems down the line. Make a habit of scheduling regular inspections and maintenance activities to ensure everything is in working order. This proactive approach not only prolongs the life of your property but also keeps tenants happy and reduces the frequency of emergency repairs.
5. Learn to Delegate
As a property owner, it’s tempting to try to handle everything yourself. However, delegating tasks can reduce your stress levels and make life a whole lot easier.
Whether it’s hiring someone to manage landscaping and cleaning or using a contractor for repairs, having reliable help lightens your workload and gives you the space to focus on the areas of your business that you’re best in.
The best piece of advice is to proactively build a network of trusted professionals you can call on when needed. This network might include plumbers, electricians, cleaners, and handymen. The more relationships you build, the better. (However, if you want to take the shortcut, just hire a good, well-connected property manager. They already have all of these relationships, which gives you direct access without all of the networking ‘legwork.’)
6. Stay Organized
Disorganization can lead to stress. Keep all of your property-related documents, such as leases, maintenance records, and financial documents, organized and easily accessible. Consider using digital tools to store and manage these documents. This not only helps in staying organized but also makes it easier to retrieve information when you need it, saving time and reducing frustration.
Putting it All Together
Stress is the ultimate joy-killer. Even with a healthy ROI and plenty of cash flow, a stressed landlord will feel miserable and out of place. By addressing your own stress triggers, you can preemptively deal with this issue and set yourself up for long-term success as a property owner. Give some of these strategies a try and track the results!
