Property management

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If you've opted for the rental income strategy, many considerations should be made to make the most of your investment and time. You may have another job, be too busy looking for your next property, and not have time to run over to see why the water heater conked out. Another option is to live in one of the units to keep an eye on your investment while the other tenants pay your expenses. That's a very nice deal.

Managing property is a 24/7 business. You never know when something will need tending. So, to fit this real estate investment comfortably into your current lifestyle, consider the following points:

Assess Your Time and Schedule for Maintenance Duties

Do you have time to run over to fix something? Do you even want to? If you're busy with work, family, or other life activities, you may not have the time to spend on your investment.

This is primarily a lifestyle consideration, not a cost consideration. Real estate investing doesn't require you to make significant changes in your lifestyle to be highly profitable. So, if you're making lots in rental income but you aren't spending enough quality time with your family, adjustments may be required.

Hiring a Management Company

Many investors employ a management company's services because it eliminates many of the headaches associated with ownership of income-producing property. It eliminates most of them. 

A management company handles the middle-of-the-night phone calls. The company collects rent, interviews new tenants, and provides maintenance services - eventually becoming the landlord. Tenants deal with your management people, who, in turn, serve as intermediaries between you and the people renting from you. 

Of course, as you might expect, there are costs associated with using a property management service. Typically, a management company will charge one month's rental income annually to oversee your property. So, if your building is kicking out $3200 a month, expect the management company to charge you something in that neighborhood for a year of services. Of course, you'll also have to pay for the lawn mowing service and the snowplow guy. Significantly, Tenants don't even know you exist, and they certainly don't have your telephone number for complaint calls. I highly recommend a management company for the North East Pennsylvania area NEPA Property Management, Inc www.nepamanagement.com.