It’s true that real estate investing is a great investment vehicle to get into to make boatloads of profits but there are certain things that one should consider before jumping into the bandwagon. I’m particularly referring to people considering owning an investment rental property. Sure many successful real estate investors can give you a thousand reasons why it is a good solid investment but as with any other investment types, it does not come without any possible pitfalls, mostly not financial in nature. So, before you buy your first investment rental property, consider these 4 guides to avoid any probable disasters.
First, if you own rental properties and decided to administer them yourself, which is really wise except if your initial property is a multiple rental units, you will learn fast that your life is no longer your own. You are actually on call 24 hours a day 7 days a week to take care of problems that may possibly happen from electric problems, pipes bursting, heating not working well, noxious fumes, roof leaks and window sills, and so many other complaints that can blow up at weird hours of the day or night. Your tenants will have your phone number and expect you to take their calls all the time.
Second, you have to take the role of Mr. or Mrs. Mean each month to collect rent when it is due. This is probably the least likeable chores of owning investment rental property for several rental property owners and single rationale that several people resort to the services of a property management company above all other rationale. You will hear all modes of sob stories in your role as landlord but you have to deal with this like a business including the things regarding your business you don’t like that include rent collection and, as needed, tenant eviction proceedings. Third, the constant need for maintenance and renovation is often daunting to rental property owners. It’s not good to hear that individuals do not handle rental properties with the respect that they would treat their own house. For this rationale, you constantly need to paint and change carpeting in between tenants. This entails work and time not to cite the truth that the period that is spent painting and changing the carpet is time that the real estate is going to be vacant of tenants and not bringing in any revenue. Lastly, it goes without saying to maintain the property occupied. As the landlord of a rental property you have to look for new tenants once the old ones leave for the reason that each time the property is vacant is a time you aren’t making any revenues. You need to get the property full as often as possible and you should opt for long-term tenants every time you can deal with that. One method is by ensuring that your tenants are treated right, not overcharged, and pleased with their homes.
It’s true that it is financially rewarding to own an investment rental property but beneath it is a lot of work that should be undertaken by the property owner. Rental properties need a long-term commitment to maintain it in good shape as well as turning it into a cash machine for many years ahead. If you decide to still continue with this business despite the drawbacks I mentioned above, the wise thing that you should do is to get the services of a good investment property management company.