When it comes to having possession of your own rental property, there are many positives to celebrate: increased cash flow, freedom to travel, and the possibility of a substantial lifelong investment.
If you want to invest in real estate so that you can travel the world or head overseas to take that job you’ve always wanted, then renting out a property could be the perfect solution. On the opposite side of the coin, however, there are many elements to take into consideration, the main one being whether or not you’re ready to invest in said rental property.
Any Alamo Heights property, no matter its size, requires a lot of time management. There are many things to consider, such as general upkeep, legalities, emergencies, and more. If you have a demanding job or are in a situation where time isn’t something that you have a lot of, managing a rental property on your own may not be for you.
Here are just some of the reasons why time management is so important for any rental property owner trying to manage their investment property on their own:
- Tenants can be challenging
- Phone calls and emails from tenants regarding the property; these can come at any time of day or night
- Locating the ideal property
- Properly financing the property
- Managing the general maintenance of the property
If you’re the sort of person who has a lot on your plate already – a full-time job, young children, life circumstances getting in the way, etcetera – then managing a rental property may not be the best solution for you. An already stressful life won’t be improved by taking on the responsibilities of a rental property.
To successfully own and manage a rental property, you need to be financially stable, committed, and mentally able. Vacations are lovely, but a landlord who lives close to the property they own is far more reliable than one who is on an entirely different continent.
If you still want to invest but cannot commit to the constant needs of the property, you will need a property manager to take on the responsibilities of your investment for you.
As with any property, unless you intend to purchase it outright, you will need to pay a down payment. From there, you will need to pay monthly or yearly fees until the property is fully paid off. If you want to purchase a rental property for the financial gain, think about the financial commitment you’ll need to offer first.
In addition to paying for the actual property, it’s always a good idea to invest in a property manager.
Property managers are dedicated to making the management of your property – rental or otherwise – easier. That being said, they cost money just like everything else does. There are, however, far more advantages to confiding in a property manager than there are disadvantages. For one, they can make sense of all of that home legislation and piles of paperwork that you’d otherwise have to manage yourself.
Setting rental rates, taking rental applications, advertising and marketing, and various other things are what a capable property manager can offer, making the prospect of owning a rental property that much more believable. Five more reasons why a property manager could be a good choice include:
- Keeping you in compliance with laws and legislation
- Managing both the property and its tenant(s)
- Collecting and depositing rent
- Local knowledge of the area and real estate trends
- Professional finance record keeping
In the case of emergencies or brushes with the law (i.e., vandalism, bad tenants, etcetera), a property manager can also represent you in court if you don’t have the time or the legislative knowledge. To prevent this, property managers can screen for good clients and look at credit history, criminal records, and evictions.
No doubt, owning a rental property is an exciting investment that you want to be fully prepared for. Take every step that you can to discover if you’re ready to take the plunge into the world of landlords, investment properties, and responsibilities.
If you’ve gone through the checklist of dos and don’ts and feel ready to tackle the challenge, download our free Guide to Finding the Best San Antonio and Surrounding Area Property Manager for help choosing the right partner in property management for you.