Setting goals is crucial for success, as it provides a result-oriented approach, helps people remain consistent and disciplined, and value their time. A Harvard Business Study found that only 3 percent of MBA graduates who set goals earned nearly ten times as much as those who did not. However, setting goals is not enough; they must be specific, measurable, attainable, relevant, and time-bound (SMART) to be effective.
A SMART goal is specific, measurable, attainable, relevant, and time-bound. The SMART goal framework is a popular approach to goal setting and is used in many fields, including business, education, and personal development.
The acronym SMART stands for:
- Specific: The goal should be clear and specific, with well-defined parameters.
- Measurable: The goal should be measurable, with a way to track progress and assess when the goal has been achieved.
- Attainable: The goal should be realistic and achievable, given the available resources and time.
- Relevant: The goal should be relevant to the individual’s broader goals and values and the context in which it is set.
- Time-bound: The goal should have a clear timeline for completion, with a specific deadline or timeframe.
By setting SMART goals, individuals can be more focused, motivated, and effective in achieving their goals and can track their progress along the way.
SMART goals help individuals break down their dreams into practical steps and track their progress while managing their time effectively. For real estate investors, SMART goals are significant, as they help them stay focused, plan and strategize, and differentiate themselves from competitors. Examples of SMART goals for landlords include increasing website traffic, reducing tenant turnover, and updating properties by a specific date.
Dividing your real estate investment dreams into smaller, practical steps through setting SMART goals helps you keep track of time and progress. By setting SMART goals, you gain more control over achieving your dreams and know exactly what needs to be done to accomplish them. Unlike regular goals, SMART goals provide direction and motivate you to manage real estate investments like a professional. In addition, a deadline attached to your goals can make you more enthusiastic about achieving them, as the clock is ticking.
SMART goals are even more important for landlords, as they can be specific regarding numbers and deadlines. For instance, some investors focus more on appreciation than cash flows because they have specific goals and know what is more important. Others opt for Class C properties to attain their target cash flow numbers. Starting early in real estate investments is advantageous as it allows you to accumulate equity while the property appreciates over time. Staying relevant is critical for landlords in the constantly evolving real estate industry, and setting SMART goals helps them stay focused on planning and strategizing.
As a landlord, setting SMART goals can help you grow your real estate investment portfolio and attract ideal tenants. An achievable goal like “reduce tenant turnover by 15% by 2026” can be broken down into steps like screening tenants better, improving the property’s condition, updating the plumbing in every unit by 2024, updating the electrical system by 2025, and painting the exterior by 2026. Tracking the percentage reduction at the end of each year helps measure progress, making the goals attainable.
Setting SMART goals is crucial for managing real estate investments effectively. Keeping the goals simple, realistic, and attainable is the key, and proceeding one step at a time instead of trying to reach the top directly is crucial. There are no shortcuts, only intelligent routes to achieving real estate investment dreams.
Are you seeking a property management firm to help you reach your SMART goals?
Sound Point Property Management can help you reach your real estate investment goals. Our experts have extensive knowledge and experience in the real estate industry and can provide personalized services that align with your specific goals.
By partnering with Sound Point Property Management, you manage your properties more efficiently and effectively, allowing you to focus on your long-term investment strategy.
