Navigating the world of real estate investments can be a arduous task, to say the least. While it’s said to be one of the best sources of passive income (and it is!), that doesn’t mean that investing in real estate is always easy. Honestly, being a real estate investor can have difficult moments. You’ll have ups and downs and face daunting challenges. While some of the pitfalls of investing in real estate are impossible to avoid, there are some that you can.

As a real estate investor, one of the most challenging aspects of investing has to do with other people. Specifically, with tenants. Search the Web and you’re bound to find thousands upon thousands of hits regarding bad tenants. Some stories are so horrible that the only thing you can do is laugh — maybe because you can’t believe it yourself unless it happens to you.

Whether you are managing your own properties or you’re outsourcing to a property manager, there are ways to ensure that your tenants have a great customer service experience. 

Curb appeal is king when it comes to your investment properties. Not only does a great curb appeal help catch the eye of good tenants, but it keeps them happy with their home over time. Spring is a vital time to do some work to spruce up your curb appeal. In fact, if you don’t do some maintenance and landscaping in spring, your curb appeal is likely to suffer the rest of the year. This type of maintenance doesn't have to be painful chore, however; here are a few tips to make it easier.  

Sometimes Memphis doesn’t get as much credit as it deserves. Every city has its problems and Memphis is no different — but Memphis has a lot to offer its residents, its visitors and even real estate investors!  It’s where rock ‘n’ roll began and home to great food, great music and a lot of heart and soul. We love Memphis. Part of being a good real estate investor, even if you don’t live where you own rental property, is knowing your market and having a great team in place to help you. That means knowing the people, the city, and being able to sing the praises of the area and your partners.  If you cannot do those things...keep looking!

For the real estate investor, there can be far more opportunities to grow your portfolio than just single-family rentals. By targeting demographics, it is possible to build a portfolio, or at least a segment of your portfolio, designed to attract a certain age demographic.  It seems like a logical decision!  We know that properties with seniors in mind are a great asset, but there are more niche demographics that can be targeted for valuable tenants and real estate investing at a slightly different pace.

Security deposits have a reputation for being a source of tension between tenants and owners, but they don’t have to be. Security deposits are a necessary way to safeguard your investment and encourage good tenants to take care of a property.  There are plenty of steps you can take, whether you are working directly with tenants or having your property management handled by someone else, to make sure they are managed with honesty, fairness and efficiency. With these security deposit investment tips, you can avoid headaches and potential legal troubles.

We hope you’re still on-task for your real estate investment resolutions a month into the new year. After all, new investment strategies and re-evaluations can go a long way to boosting not just your bottom line but also your personal satisfaction in your investments. Real estate investing, while often referred to as passive income, takes a lot of time and — you guessed it — investment.