Property Is A Business

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Property is a business. 

When you’re thinking of real estate it’s easy to get attached to the emotions of it. How does the home look? The garage? Perhaps what the garden’s like. So many things can get into it even as investors. What if I told you that property should really just be treated like a business? 

Now in a business, what are the components? There’s money in, money out. Now in a deeper side of it of course it might be saying, let’s take a shop front. The shop front might look nice. That appeal that invites people in. The service that you give. That could be the example of property management and how you’re treating your tenants. There are so many similarities to property and business that it should actually be treated like one. 

How can treating property like a business help you in your portfolio? Well one is you’re taking the emotions out of it. Because you focus on the numbers and the in and outs, that can really help you take your property and your decision making process to be one without A, risks or hesitation because you’re not making them with emotions. Number two is with more clarity. You’re able to assess the pros and cons when making a decision. And C, you’re actually also able to really analyze it because you understand what the impacts are from a number basis when you’re say looking after maintenance or issues on your property.

When you treat property like a business, yes even in a business there can be some emotion attached to it because it’s all yours but from that treating it like a business you look at it very very differently. As a business owner you may start to think, “How can I long term grow my business? How can I support my customers and provide the best service?” All these things are so transferable to your property investing mindset. 

If we’re taking a few of these areas into bullet points and how you can actually take this business mindset and help you invest, lets go through the examples of the business itself. If we’re going through your appeal, how are you making that shop front look nice in the business may be the same from a property where you’re making sure maintenance is minimal, the curb appeal is strong, you’re looking after your property not just for that short term but also for the long term. These things may increase value or they may increase tenant appeal. That’s that equivalent from a business perspective. 

If you’re thinking from the business the product, perhaps is your business the same as everyone? Do you offer the same food or do you offer the same clothes? Could that be the equivalent of buying a unit or townhouse where you’re the same as everyone on the block? Perhaps you can differentiate with a home and maybe have it styled differently or looking differently or part of a suburb where it’s different to most suburbs. See if you look at the similarities, they’re so closely aligned.

As I started going through my investing journey I really started treating property as a business. And the decisions that I made changed, the impact that was there changed and how it can actually impact your investing journey changed totally. Next time that you may own a property as an investment or have some maintenance that comes from it, don’t think about, “Oh no, that’s another bill. That’s another list to sort out.” Think of it as, “There’s a customer that needs my help and I need to get to this ASAP. I need to ensure it’s done right, done to a great quality, but at the same time not costing me too much.” And if you do put that business mindset hat on, your property investing journey starts to become easier and more valuable over the long term.