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15 Property Management Tips for Real Estate Profit Maximisation

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The real estate industry is currently being driven by urbanisation in developing nations, where people have started migrating to improve their standard of living.

Therefore, knowing a few property management tips always come handy whether you are trying to build passive income or kick off a full-time investing career.

Investing in real estate is always considered a good decision.

A recent study predicts that the global real estate market will reach $4,923.3 billion by 2023, with a CAGR of 5.3% from 2021 to 2031.

Identifying what exactly is the best way to make money in real estate is challenging at times. However, is making money in real estate as complicated as it sounds? Let us discuss the best property management tips for making money in real estate.

How Does Real Estate Generate Revenue?

In general, there are seven property management tips to profit from real estate:

1. Increase a property’s value

With time, the property's value appreciates for reasons such as location, development, home improvement, natural discoveries or simply inflation.

While for different types of properties, the value increases for different reasons, it can only be realised one way – by selling. A property might cost $500,000 when you buy it, but after ten years, it might be worth $700,000. Sell the property, and you will have made about $200,000 in profit.

Now, what could be the reason for the value to increase so much? The reasons are as follows:


Residential properties appreciate primarily for this reason. If a property is close to a school, a shopping mall, a scenic area, or a tourist attraction, its value is more likely to increase. Also, pay close attention to neighbourhood safety and crime rates.


As cities expand, land outside the city limits becomes increasingly valuable as developers become interested in purchasing the land. Subsequently, when developers construct residences or office buildings, the value of that area appreciates even more.

Natural Resources:

If you discover gold or oil on your land, the value will obviously skyrocket. You may also sell land rights to companies that wish to harvest resources off your land. In return, you can earn a percentage of whichever resources are collected.

Home improvements:

Adding a bathroom, heating a garage, and updating a kitchen with modern appliances are just a few ways to raise the value of a home.

Surge in inflation:

Especially with the COVID-19 impact, global inflation rates have been rapidly surging. A plot of land that cost $50,000 in 1970 but remained undeveloped for many years would still be worth $700,000 today. Although inflation may cause you to receive five times as much money when you sell, other items also cost five times as much to purchase. Hence, purchasing power in the current environment is still a consideration.

2. Generate consistent income

The provision of consistent income payments is the second significant way that real estate creates wealth – generally referred to as ‘rent’.

Real estate investors today use their rental properties to produce a consistent and dependable cash flow.

There are three ways you can generate regular income through real estate: Residential properties, commercial properties, and raw land.

Income from residential properties

The majority of the income from residential properties comes from basic rent. Based on an agreement, tenants pay a fixed amount per month—which will go up with inflation and demand. Also, remember that you must collect enough rent to pay the mortgage, utilities, and other costs associated with the property. A desirable location is crucial to finding tenants quickly and charging them a higher price.

Commercial property income

Similar to residential rentals, you can rent out commercial properties to businesses. By giving your tenants contractual obligations like the ‘right of first refusal’, you could earn more money with commercial properties. Therefore, to hold these options today, tenants must pay a premium regardless of whether they use them or not.

Raw Land Income

This is where you can rent your raw land for production purposes, usually agricultural production. In this situation, businesses will compensate you a percentage of their earnings or regularly for any structures they add. For example, these include pump jacks, pipelines, gravel pits, access roads, and cell towers.

3. Buy and hold residential real estate

This is one of the more conventional methods of making money with real estate. As mentioned in the previous sections, you can buy a property and hold it until it appreciates or rent it out to tenants.

For instance, you can buy a single-family home and rent it out, or you can buy a multi-family building and rent out every unit. Moreover, you can use this investment strategy to make money at your primary residence.

Depending on your budget, one of the best property management tips is to hire a management company. They can help rent out units, collect rent, take care of needed repairs, and perform other duties.

4. Fix-and-Flip

Real estate investors, known as “flippers,” specialise in quickly fixing up houses so they can be sold for a profit. Flipping can be financially rewarding if you make the changes in the right way. If you are knowledgeable about a property’s underlying costs and potential value. And if you have the skills to handle repairs yourself or manage a crew to do them, you should choose to do this.

5. Airbnb and Vacation Rentals

In recent years, the demand for home-away-from-home rentals has skyrocketed as more tourists choose this option over staying in hotels. If the property is situated in a well-known tourist area, it may be possible to rent out a house or even just a room on a short-term basis to make profits.

However, remember that short-term rentals are restricted and occasionally even prohibited in some cities. Therefore, before listing on a website like Airbnb, Vrbo, or HomeAway, check your city’s bylaws. Be sure to account for the extra costs of sanitising and deep cleaning between visitors.

This is considered one of the best property management tips to earn more money.

6. Manage real estate properties

There’s a high demand for property management companies. This is because many real estate investors don’t have the time to manage multiple investment properties. Hence, they would pay specialised property managers who would know how to do an excellent job.

Critical tasks for a property management company include:

Consider investing in a property maintenance software like i4T Maintenance, to help you get connected with verified suppliers, streamline maintenance work orders and keep tenants and landlords satisfied.

7. Lend to investors

One of the best ways to make money in real estate without purchasing property is to lend money to those who wish to invest.

A mortgage for real estate investors can be financed if you have a sizable amount of money. As a private lender, you can either build your own website or use a peer-to-peer lending platform to find potential customers.

However, you must determine your potential returns and make sure the investment will be profitable for you before you agree to lend money to a real estate investor. Although these loans are risky, the mortgage will serve as security for your loan.

Top 10 Property Management Tips for Investing in Real Estate

1. Understand your markets and diversify

Knowing what types of properties are common in your area and current real estate market trends are crucial before you start investing. Your decision to invest is informed by market knowledge. Additionally, look into markets in different regions or cities to diversify your investments. By doing so, you are reducing the risk associated with real estate.

2. Recognise your upfront costs and financing

Do not blindly invest without a proper financial plan. When figuring out upfront costs, you must factor in how much you will need for repairs and maintenance.

Hence, don’t just include the purchase price and the realtor’s commission. Moreover, if the cost of investing is not available, you can always opt for a loan option after adequately planning out the repayment scheme. Loan options:

  • Rental loans
  • Home equity loans
  • Bank loans
  • Mortgages
  • Fix-and-Flip loans

3. Maximise the value of your property

By offering special services, you can charge more from your clients. If you invest in a rental property, pay close attention to cleaning, maintenance, and repairs to maintain the property’s appearance. As a result, even if you decide to list your property for sale, it will fetch a high price.

4. Do not overspend on properties

Yes, properties need to be in good condition but do not go overboard with expenses. Set a spending limit for renovations and repairs, and adhere to it. Otherwise, you won’t receive much return on your investment.

5. Work with experts

When you are new to this industry, it is advisable to speak to an expert. They can guide and share information you may not have adequate knowledge of. Specialised services you can outsource are:

  • A real estate agent who will analyse the market and advise lowering your risks.

  • An accountant who can handle our books and tax obligations

  • A property manager, if you have multiple properties to look after

  • An investment consultant who can guide in making correct financial decisions

6. Investing through an LLC

It is advisable to register the property in a limited liability company (LLC). This is because some lenders may require you to create an LLC to qualify for investment financing. Additionally, since it is regarded as a separate entity from the investor, an LLC shields you from liability.

7. Recognise how real estate operates

The property market’s state is indicated by the real estate cycle, a four-phase pattern.

  • Recovery: The recession is followed by a period of recovery, which is characterised by low real estate prices and fewer new construction.

  • Expansion: During this period, the market recovered, the economy is strong, and there is an increase in demand for housing.

  • Hyper supply: As the market for real estate properties expands, investors construct more homes to meet demand. Eventually, the supply exceeds demand. During this time, take the opportunity to buy properties. This is the time to use the buy-and-hold strategy.

  • Recession: During this time, there is a massive supply of real estate properties compared to the demand. As a result, high vacancy rates put some real estate investors out of business during this phase.

8. Be realistic about your pricing

One of the great mistakes is setting high prices without conducting market research. You may not find tenants to fill the rental space if you do not.

9. Have a solid marketing plan

Simply listing your home on a rental website isn’t a marketing plan. Today, there are many ways you can entice customers. Social media, user-friendly website, and business listings are a few of the many ways to market.

10. Expand your network

The size of your network contributes significantly to your growth as a real estate investor. Hence, finding one or two real estate investing groups to join is vital. After all, this pool of people will be beneficial in more than one way.

What Kind of Expenses Should you Anticipate?

One of the essential topics which have to be spoken about under property management tips is expenses. An investment in a rental property will involve various costs in addition to the initial outlay.

Hence, it is crucial for investors to stay informed about all potential costs associated with their investment to avoid surprises in the future.

The following lists the costs to take into account when financing a rental property:

  • Maintenance
  • Utilities
  • Property taxes
  • Insurance
  • Appraisal fees
  • Home inspection
  • Broker fees
  • Tenant screening
  • Property renovations
  • Marketing
  • Accounting fees
  • Business Permits
  • Vacancy costs


Now that you have read this article on how to make money in real estate, it will be possible to make a wise decision. Once you have established initial investments, make it a priority to specialise your services in the future to stand out from your competitors.

In order to do this, choose a niche to specialise in and educate yourself on how that particular market works. Once you fully master a market, you can diversify into another market and then keep on expanding later in life.

Additionally, be prepared to face the worst when it comes to real estate because things may not turn out as expected. For instance, expect to go over your budget and speculated timeline.

Remember, no matter which option you choose, know that numerous other paths are waiting for you to make money off real estate. Property maintenance is one such way for you to go, and utilising property maintenance software like i4T Maintenance can help you do it the right way.

Finally, with excellent communication skills, you will be able to entice customers and expand operations in the future.

Applying these property management tips you are well on track to make some solid income from real estate investment.

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