Managing Multiple Real Estate Properties

As your real estate portfolio grows, so does the complexity of managing it. Having worked with several property owners in Uganda, I realized that to succeed, you need rock-solid systems in place.  The tactics you employ to manage one property are usually insufficient to handle multiple investments. This guide explores essential considerations to help you in managing multiple real estate properties efficiently. Let’s delve into the most critical ones.

1.      Technology

With the advancement of technology bringing forth new software for coordinating day-to-day tasks, managing properties with spreadsheets and paper files is something of the past. You can now access all information about your properties on a single dashboard on your phone or desktop. Various platforms help you with automated rent collection and late fee assessment, maintenance request tracking and assignment, lease and document storage, financial reporting and analytics, and tenant communication. Start with software like Buildium and AppFolio to help you manage your real estate portfolio.

2.      Document Management

Creating a digital filing system with separate folders for each property, standardized naming conventions, cloud backup, easy access for team members, and secure storage for sensitive documents is now possible. Keep track of all your documentation to help with compliance issues such as tax filing. It will also facilitate transactions when you need to sell a property and help you keep track of your property's historical performance. Proper documentation will shield you against chaos and legal issues. Some of the essential documents that you will need include lease agreements, property inspection forms, maintenance request forms, incident report templates, vendor contracts, and insurance policies

3.      Financial Management

This is the backbone of Your Operation. Without proper financial systems, even profitable properties can fail. Establish a robust economic infrastructure for financing, banking, accounting, and expenditure. Recommended practices include setting up separate accounts for each property and having reserve accounts for security deposits. Accounting processes such as monthly rent roll reconciliation, expense tracking by property, budget vs. actual analysis, cash flow reporting, and capital expense planning will help you keep an accurate real-time picture of your overall financial position

4.      Maintenance:

Keeping Properties in top Shape prevents minor issues from becoming expensive problems. In many cases, what starts as a small defect in the building could require costly repair work if it's not addressed early enough. To avoid this, create a calendar-based system for maintenance works such as gutter cleaning (quarterly), pest control (quarterly), plumbing inspection (annual), and roof inspection (annual). You also need to establish a straightforward process for handling maintenance requests. Such a process could have the following task flow.

i.            Tenant submits request through property management software

ii.           Request is categorized by urgency

iii.          Work order is created and assigned

iv.         Contractor completes work and documents

v.          Tenant confirms completion

vi.         Payment is processed

vii.        Records are updated

5.      Property management team

As you scale, you'll need help. You need a team of reliable individuals to manage core roles such as project management, maintenance coordination, leasing, bookkeeping, and other administrative tasks. Your portfolio will likely suffer if your team members lack sufficient experience or skill to perform their roles. For your team to be more effective, you need standard operating procedures to guide them. Document every process, including tenant screening and approval, move-in and move-out procedures, maintenance request handling, lease renewal process, late rent collection, and eviction procedures.

6.       Communication Systems.

Clear communication prevents most problems before they start. Keeping everyone in the loop ensures that all parties involved understand what’s required of them and holds them accountable. The following are some of the things to consider for effective communication.

i.           Set up a tenant portal

ii.          Establish office hours

iii.         Create an emergency contact system

iv.         Send regular property updates

v.          Schedule periodic surveys

vi.         Hold weekly team meetings

vii.        Use project management software

viii.       Create a communication hierarchy

ix.         Document all important conversations

As your portfolio grows, your systems should grow with you. Regular system audits help identify bottlenecks in processes, technology needs, staffing requirements, training opportunities, and areas for automation. Monitor occupancy rates, maintenance costs per unit, tenant turnover rates, and net operating income. These will give you a good indication of how well you are managing your portfolio.

Successfully managing multiple properties isn't about working harder but working smarter. The right systems and processes can help you scale your portfolio without scaling your stress.

Remember, the best time to implement these systems is before you need them. Start with the basics and build up as your portfolio grows. Your future self will thank you for the organization and forethought you put in today.

To learn more about investing in Uganda’s Real Estate industry, visit https://www.barosgroupltd.com/

About the author;

Benard Sonko is a real estate investment manager and founder of Baros Group Limited. For comments and inquiries, you can reach him at +256742140251 or info@barosgroupltd.com