What to Do When You Start Accumulating Multiple Properties

If you have reached the point where you have accumulated two or more properties, it may be time for you to start taking your real estate assets more seriously. If you plan carefully, your large-scale assets can make you a lot of money. Here are some possible avenues you can take as some of your first steps.

Hire a Property Manager

Property Managers can take on a lot of the responsibility away from landlords. Essentially, they become the interface between the tenant or the property itself, and you, the actual owner. Their duties include (but are not limited to) finding, interviewing, and drawing up a contract with potential renters, maintaining the property as a landlord normally would, collecting rent payments, and taking care of the eviction process when such action is necessary. While your local property managers will have various prices for their services, read reviews and compare prices to see who tends to be the most dependable and trustworthy.

Get Serious About Asset Protection

Without asset protection, your large-scale property is vulnerable to litigation and seizure from creditors. While there are many ways you can go about protecting your assets (insurance, homestead exemptions in certain states, retirement savings accounts for liquid assets, etc.), you may want to consider forming a Limited Liability Company. It is essentially a legal form of a company – that is not a corporation – that supplies an uncommonly broad variety of limited liability coverage to business owners. LLCs offer the asset protection most investors need and are known for their flexibility. With such a high number of annual lawsuits in the U.S., numbering in the tens of millions, you’re going to want to take all of the precautions that you can.

Review Your Options

Multiple properties mean multiple ways to gain serious income. Depending on your specific situation and your local market, you could consider using, selling, flipping, renting, Airbnb, or simply holding onto the property until another option comes along (although you will likely be losing money if you wait). Pick a course of action with a consultant’s help as soon as possible so you can create a source of income as soon as possible. Ask yourself if this property will be a financial and logistical hindrance or benefit in the coming years.

Having multiple homes means having flexibility and a financial safety net. But you need to plan and act accordingly if you want to take full advantage! If you look thoroughly into your options, and act swiftly, the bonuses you will gain will not be insignificant.

Check out this article on how to get the best tenants into your units!