In my Bigger Pockets article “3 Key Lessons for Avoiding The Dark Side of Passive Income” I make the case that no investment is or truly should be passive. The same goes for managing your rental or apartment building portfolio. While you don’t need to be involved on a day-to-day basis, you need to establish a rhythm of reviewing the numbers from your property manager and making adjustments accordingly.
I have investors in my deals and so there is a certain amount of reporting that I do for them. I provide them with adhoc updates if there’s something unusual going on. But normally I will give them a quarterly report with a Profit & Loss statement along with any distributions.
When you don’t have investors, you tend to pay less attention (trust me, I know), and this is not good. You should ALWAYS pay attention to your investment, even if you don’t have investors to report to.
In this article I review the best practices to follow on a weekly, monthly, quarterly and annual basis to make sure your building is performing to plan and maximizing your profits.