People able and qualified to purchase investment property often do not because the idea of having to deal with the property is disdainful. My father, for instance, hated the notion of having to rent out vacant apartment units, repair broken garbage disposals, and resolve tenant disputes, evictions, and other issues. He actually held back from making an investment in real estate until I was of age to get involved.
Unfortunately, others today share the same concerns about becoming a landlord. Many people, not unlike my Dad, prefer to deposit money in their bank rather then to invest their money in rental property. Even when it means less of a yield, they prefer to pigeonhole their money because they have no stomach for the investment alternative. The “dirty work” of hassling with the tenant and property-management issues inherent to real estate investing is simply not their cup of tea.
Fair enough. Investment real estate does present management challenges and becoming a landlord may not be a bed of roses. Fortunately, it is also true that property management companies can be hired to help run the property. Real estate investors who do not want to be bothered with the day-to-day activities can own investment property without having to deal directly with the unpleasant and tiresome details associated with rental-property management with the help of professional property management.
A smart real estate investor will factor in the cost of professional property management, and seek a trusted local property management company, but it is not beyond reach and certainly worth considering.
Having your money working for you in a real estate investment certainly beats what a bank pays you. Now that you know the hassles can be avoided, why not do yourself a favor and at least explore the option.
