Well I am on Z and covered all topics related to Property Management through the alphabet and then some. Hope you have found the topics timely and of interest.
Zero Sum Gain (break even), Zap Your Energy, Zombie, Zen, Zest for Life
Zero-Sum-Gain – break even is at least where you want to be with your investment property and well on your way to positive cash flow. We all have negatives at time with rental properties but it shouldn’t be a long term condition. Even with write-offs you don’t want to be losing money indefinitely.
Zap Your Energy – Yes, property management can do this. I even have my days. However, if you have systems in place, follow the procedures you have set and keep on top of accounting and maintenance, work to build a good relationship with your tenant you should rarely be in a state of feeling Zapped or Zombie like.
Zombie – this is how you might feel after doing a large turn over, or remodel. This isn’t how you should feel managing your rental. You don’t want to be in a place where you are going through the motions. If you are then you aren’t minding the store and treating the rental as a business which if you have been reading my entries you now know this is a constant theme with me. Your rental IS a Business. If you are feeling like a Zombie – then hire a good property management company to take over for you.
Zen – This is where you want to be headed with your rentals. Yes, I live in Santa Cruz, CA and this term is probably better understood than elsewhere. You want to be managing your properties in a way that it fits into your life, is a balanced part of your life, it shouldn’t become your life because that is when people get fed up and just sell. People forget their longterm goal for their investment and business and often just call it quits. Again, by following the tips and advice in this blog you will be able to manage rental properties and hopefully have a balanced relationship with your rentals. Getting you as close to Zen as possible.
Zest for Life – remember when you inherited the property or bought your first rental? I do. I was so excited. It was my first big investment, my first step into diversifying my investments away from Mutual funds and adding real estate into my portfolio, it was my first step towards my retirement planning. My first rental was also real, physical, something you could touch and actively participate in. I was so excited about remodeling, painting, making it mine and honoring my husband’s 96 year old grandma who had lived in the home most of her life and had passed away with no one in the family wanting to purchase the house it became my first real estate purchase.
You want your rentals to be part of an overall plan and something that should still get you excited about your goals and future. I still have a tangible sense of responsibility for taking care of my properties. I feel responsible to my tenants to provide a nice place to live. I feel responsible to myself to manage my investment well. My goal in buying my real estate was to keep it for the long term and have them as part of my retirement plan. It was never to buy and flip.
In the past 20 years I have remodeled over 12 homes, and loved it. I got into property management because of my business background, organizational abilities and exceptional communication skills. I finally listened to friends and family who kept saying, “why don’t you do property management as a business”? I took their advice, tested the field, and found I loved it. I have been blessed to be able to buy a 20 year old business from someone who was retiring and over the past 5 years I have been able to add my own touch to it, go out on my own, build my portfolio and staff and create amazing relationships with my clients, tenants, vendors, employees and the community at large along with finding a career that is challenging every day. I truly learn something new daily.
I have found my Zest in Life and love to share my experience and best business practices. I teach at Cabrillo Community College, and at other Real Estate related events. Hope to see you in the future at some of these workshops. Look for future postings of classes and workshops.
Please check out my website at www.PortolaRentals.com if you are interested in properties in Santa Cruz or have rentals in Santa Cruz, CA.
Kathleen Richards
