Investing in a good rental properly may not be a good decision for everyone. If you want other options or you want to be a passive manager, you are not alone. To choose the best property management strategy, what you need to do is know your lifestyle and goals. Given below are some tips that may help you make the right decision.
1. Distance From The Property
How far is your residence from the property? Luckily, if you live a few minutes away, you can go over there on a regular basis to remove garbage, carry out required maintenance, resolve issues with the tenant and collect rent. However, if you live far away, this strategy may not be feasible for you.
In this case, you may want to go for a hands-off approach. In other words, you can hire a local company or individual to take care of the day-to-day tasks. Just make sure you can do so.
2. Number of units
You can manage one unit without any problem, but you can’t handle if you have over 50 units. As a matter of fact, for more units, you have no choice but to get outside help. With this option, you can still stay in charge of the major operations, but the other tasks are better left to another person.
3. Skill level
Make sure you know your strengths and weaknesses. If you have a rental property, you have a business to manage. However, for managing a business, make sure you know how to organize things. For instance, you should know the dates of rent collection, bills payments, lease expiration, and other payments. If you are like most people, you may not be able to take care of all these matters.
If you don’t know much how to do business, you have two options to choose from: you can learn it or you can get help. Being a property investor, there should be a solid business plan in your head. Besides, you must have a powerful strategy to deal with the routine operations.
4. Time Commitment
Do you like to become a rental property owner or landlord? If you already have already have things to do, it may not be easy for you to manage a rental property. You can choose any investment strategy provided you know your goals. For instance, if you know how to manage a property passively, then hiring a property manager is a good idea. But if you are into active management, you should do everything on your own.
It’s a fact that owning a rental property is an appealing investment as far as most people are concerned. However, not everyone can manage a property actively. So, it’s based on your personality type as well. If you can handle stress, can handle conflicts and can use your skills effectively, you can go for the DIY route. But if you are not that type of person, you should choose the other option.
So, you should consider these 5 tips when choosing a property management strategy.