August 8, 2021
How Great Property Management Increases Profits
Obviously, it’s important to secure profitable single family home investment deals. How Great Property Management Increases Profits. However, managing the home renovation process effectively can also increase profits.
Let’s explore how this can be achieved.
Experience Matters When Managing Renovation Projects
There are three key reasons why experience is critical when it comes to managing single family home renovation projects.
Firstly, before acquisition (during the due diligence period), the team develops a scope of work. This includes determining costs for labor, materials, holding, and a budget for unexpected expenses.
Check out this video I made, where I walk through a house during the early stages of developing the scope of work.
Work Flow. The renovation of the property starts immediately upon acquisition. Dumpsters are dropped off on-site and crews begin demo work. Every item in the scope of work is planned out in a logical order, with vendors and trades scheduled in advance until the final punch-out items are completed.
Sales Marketing. As for sales and marketing, I start promoting the property right away. In fact, the marketing plan for the resale of the renovated home is developed during the due diligence period and is included in the project management. The listing goes live on the day the professional photographs are delivered.
Summary How Great Property Management Increases Profits
Managing any aspect of the project poorly increases risk and decreases profits. By managing the project well, the deal can be turned faster, and there is a higher possibility of exceeding the minimal profit target.
Contact John Marion
If you’d like more information or are interested in participating in one of the Alpha Dog Capital projects, feel free to call, text, or email John Marion.