If you own real estate, you are a CEO and your success will be measured by how profitable you make your business. Your duty as CEO will be to maximise the returns to the shareholders – you. You will have to evaluate the strengths, weaknesses, opportunities and threats to your business – SWOT analysis and act accordingly.
Your customer(s) (tenants) will be your greatest asset and so you will need to make the property attractive to them. If you live in your own home, you are your own client and you must respect yourself. Anything that may increase rent, do it as long as it is legal and the increased cost does not outrun the increased rent in the long run. You will ensure rent is collected in time before it becomes bad debt and that rent is reviewed periodically in sync with the market.
Like any other business, real estate has expenditure, either fixed such as ground rent and taxes to local authority, or variable such as repairs. Buildings also wear out whether occupied or not, and suffer obsolescence as customers’ tastes change. You must therefore be prepared to remodel your real estate when necessary. You will need to draw up SMART (specific, measurable, achievable, relevant and time-bound) budgets and strive to stick to the budgets.
Neighbourhoods also do change and as a CEO you will need to act fast. Opportunity may come as a result of increased population, change in planning parameters or improved infrastructure, increasing the development potential of the real estate. You will be able to exploit this opportunity by putting your building to a higher use, extending it or by demolishing it and erecting another building that will exhaust the increased potential. Where you are faced with a static or deteriorating neighbourhood, you may have to sell the property and move to a neighbourhood exhibiting growth potential.
If for one reason or another, you do not have the time to manage your real estate, or you feel you do not have the expertise to run the business, then you should promote yourself may be to a chairman and hire a CEO to run the business while you retain the power to hire and fire.