“We can have more than we've got because we can become more than we are.” — Jim Rohn
One of the things that I see in common with successful apartment investors is they spend time on, and focus on, things that others do not. What do I mean, and how can you profit from this?
The most successful people I know make it a habit to work on the things that are needed to maximize profits. They are not working on the day-to-day operations of their investment business. Focusing on increasing profits is what I would call their “big picture” idea, yet this requires some degree of attention to the details. As an investor you should adopt this motto:
“Do Things When Most People Do Not.”
You could look at this in a lot of ways…but…let's go for the financial stuff. How about a few specific strategies for you:
1. Insurance. Property Insurance can be anywhere from 2% – 5% of your gross income. When do most people look for reduced rates for the same coverage? When their insurance policy comes up. When should you? At least three times per year, or quarterly. Why? You will find most savings this way and it can mean thousands in extra cash flow and value.
2. Management Reports. Most people look at management reports, etc. once every month. What I do? I look at reports once every two weeks! You do not want to go 30 days until you discover a problem.
3. Rents. Most people look at raising rents once a year? Look at raising rents 3 or 4 times per year. Now, probably not with the same tenant but most put this off…if you proactively raise rents you will be more profitable.
I could go on. Remember, the most exciting thing about investing in apartments is that you actually have some degree of control over your profits, and ultimately your wealth when you sell your property.
Take a look at your income property goals, what you own or want to own and use this motto. It will make you money.