Real Estate investing is similar to the movie, too…..you have those moments of lovey-dovey, you feel good about your life and the chance to control the ending–your Financial Freedom. And like the movie, it can easily repeat itself to the point of being quite annoying. Expensive, too.
See if you can identify with any of the Top 7 most repeated rental property Groundhog Day-esque moments:
#7: Slamming a marginally qualified tenant into a vacant property because it’s been vacant so long that the spiders and ants have begun playing formalized games of cricket and soccer on your carpets. Two months later, you end up evicting that tenant and you’re now worse off than before.
#6: Ignoring that maintenance item request from your tenant, hoping that it resolves itself but knowing that it will only get bigger and more expensive. Which it finally does, too….
#5: Not having your tax documents ready for your CPA and having to pay the CPA more money than you know you should because of repeat phone calls/emails/visits to get it all done.
#4: Paying for repairs or expenses with a personal credit card instead of with a credit card associated solely with your real estate entity. Can you say corporate veil pierced? Whoops.
#3: Not double-checking the move-in condition of the property before actually meeting the tenant to give them keys. Off to a bad relationship already with these folks….
#2: Taking on a property management client (if you’re a PM) who is too demanding that you turn your processes on their heads to accommodate their whims.
#1: Running out of cash. Never, ever, run out of cash. (Every business problem can be solved with enough cash.)
Sooo….the question for today’s Take-Away is this: What single action can you take this week to avoid feeling like Bill Murray and having repeat Groundhog Day moments in your real estate business?