Real estate spring cleaning is something the most successful investors take part in.
Those in the real estate industry understand that “the early bird gets the worm.” So while many may still be in the thick of the holidays, investors are advised to look ahead to the New Year. Now is the perfect time to gain an advantage over your competitors and clean up your portfolio.
March through May isn’t just the ideal time for tidying your home – or your investment portfolio for that matter- it is is also the best time to spring clean your business mindset. This means looking at your real estate business as a whole and evaluating what needs to be changed. What aspects of your business are successful? Which areas need improvement? What can you do to better your employees and clients? By March, you are already deep enough into the year where you should see some of your New Year’s resolutions paying off.
This isn’t just about beating the competition. While it is a good time to get ahead, there are ample opportunities that must be taken advantage of at this time of the year. The spring real estate market is ripe for investing, and probably in the best shape it has been in for quite awhile in terms of locking in value for buy and hold real estate investors. Accordingly, now is the best time for spring cleaning your real estate investment portfolio.
So what does this mean?
For many, spring cleaning for their buy and hold real estate investment portfolios will literally start with spring cleaning. As the weather thaws, there is a lot of general maintenance that should be done to reduce visual inconsistencies and even safety hazards.
Those that have bought distressed properties and rented them right away, completed DIY rehabs, or have just been holding onto properties for a long time, may be due for some upgrades. Some might view this as an unnecessary expense, but executed properly, can yield both short and long term profits.
Some cash flow real estate investors may also want to do away with old tenants if the situation calls for it. Few want the reputation of evicting anyone during the holidays, no matter how much they might deserve it, but spring can be a great time for picking up new renters. With rental rates expected to increase, this option may be one worth looking into.
Many of those serious about maintaining and building a passive income portfolio might also want to take advantage of this season. Drop some of the older or poorly performing units from your portfolios and replace them with upgraded properties.
This not only applies to properties with major repair issues – or which are coming to the end of their structurally sound lifespans – but also those that might have already seen their best growth.
There are many ways to get rid of old practices, properties and items that are holding you back. Old furnishings can be sold off, punted at garage sales, or even donated to charitable organizations. Besides doing a lot of good, this can potentially benefit investors with additional tax breaks.
Those that have not refinanced may also want to do that now while mortgage interest rates are low, and could use the payment savings of access to cheap cash to finance improvements.
Spring can be a great time for growing your portfolio of cash flowing rentals. This can be a sweet time to make acquisitions ahead of the summer madness and invasion of extra buyers. By leveraging turnkey real estate investing, investors can also move to get into the best markets in the nation almost effortlessly.