Don’t Let Property Management Keep You From Owning Rental Property
There are good reasons that might prevent someone from investing in real estate. The lack of adequate finances certainly would make it difficult for someone to become a real estate investor and purchase rental income property. Even with a suitable mortgage, without the required 20 to 30 percent down payment required by most lenders some just simply cannot afford to invest in real estate.
Finances aside, though, some can afford to purchase investment property but do not because rental properties require property management. The idea of having to deal with tenant issues or late night calls about a leaky water heater does not set well with those who simply do not want the aggravation.
Yes, rental property is generally management-intensive, but real estate investors do not have to deal directly with it. For about 5 to 10 percent of the gross income the investor can hire a professional property management company to do the dirty work for them. A property management company can insulate the real estate investor from day-to-day tenant issues and field those late night calls. Normally, the tenant is never even given the owner’s name, address, or telephone number.
The point is this: if you are in a financial position to begin investing in real estate but are reluctant to do so because of concerns about property management, there is a solution.
Okay, but you might object to the idea of having to pay for a property management service. Perhaps you see it merely as an additional expense that eats into the monthly cash flow and therein makes real estate investing a poor investment opportunity. Fair enough, but you must not lose sight of the overall benefits of real estate investment; like appreciation and tax shelter.
Keep in mind that real estate investing is a business and the fees associated with property management are part of the costs associated with running that business. You must spend money to make money. Moreover, not unlike the many real estate investors before you, rental property ownership has the potential of making you a lot of money. That is what real estate investment is all about; and the reason why others no different then you are engaged in real estate investing.
