The 4 desires of REI's



I) Stable income

II) Rental rates at or above market average

III) Well maintained properties

IV) Timely Owners Distributions and Financial Reports 

The primary goal of all rental properties is to earn revenue for the owner of the property. Owners also want their investment properties to be well-maintained so that over the course of many years, the property can provide as much revenue for as little re-investment as possible. And as they should, owners want to understand the financials of their investments and watch their investments grow. A good management company can help owners achieve their goals for their investment property. 

Owners need stable income to budget and plan properly. Happy tenants and experienced / knowledgeable property managers are the essential ingredients to stability. Tenants are happy when they believe they live in a safe and well-maintained home. A tenant should move into a home where everything works, there are no bad smells and no pest control issues. Tenants must be informed from the beginning of what their responsibilities are and what the owners’ responsibilities are. Property managers must be eager to address the problems that are the owners’ responsibilities and experienced enough to push back when tenants are requesting too much. Additionally, proper budgeting and planning for equipment replacement prevents major dips in cash flow. 

It is wise for investors to maintain a firm hold on market rates and ensure their properties can capture their appropriate share. This is done through strategic planning and regular market analysis. Property managers should be strategizing with the owner 3-6 months out on how to increase or maintain rates over the next coming lease cycle. This process starts with assessing the current value of the existing lease compared to the market direction. From that point, the time of season the current lease expires, the current tenant’s likelihood of accepting rate increases and potential revenue loss vs gain should be evaluated to make the final decision on renewal options. Of course, all of this planning is for not, if the property does not show well due to maintenance issues, or does not receive proper marketing. 

What does it take to ensure an owner’s property is well maintained? It takes an “eye’s-on approach”, attention to detail and a good maintenance team. Property managers should schedule quarterly inspections for all properties. It is often a good idea if you can marry these inspections with pest control service. This allows property managers an opportunity to assess the condition of the properties, take pictures and provide basic maintenance like changing air filters and smoke alarm batteries.

Finaly, owners want is to receive their distributions and financial reports when they are due and on-time, every month. This means tenants must pay their rent on time and accounts are balanced and reported accurately. Providing tenants with reminder notices and online payment portals are common methods used to encourage on-time rent payment.