If you are going to get involved with investment properties, you need to consider all of the details that go into this. One of the most important questions is: who is going to be responsible for managing the property? In other words, can you do it all on your own? Some investors hire a property management company to help them, but others like to do it all on their own as a way of saving money. Which group do you fit into?
As noted above, the main benefit of managing your own properties is that you can save money. In other words, you do not have to share the profits made from your tenants with a property management company. If you profit margins are tight as it is, this may sound quite appealing to you.
Of course, you need to keep this phrase in mind: time is money. While you can take on the responsibility of managing your property, it will take up a lot of time. Not only will you be responsible for taking phone calls from tenants, but when a repair is needed you are in charge. Are you willing to take the time to handle these situations? Also remember, as you add more properties to your portfolio you are adding the potential for more questions and repairs.
When it comes to property management, there is no denying that you can do a lot of the work on your own. Many landlords find this the most exciting part of the investment process. In other words, they like to deal one-on-one with tenants and help with repairs when they come up. But on the other side of things, there are real estate investors who are more ?hands off.? They would much rather hire a property management company to take care of the day to day tasks.
Before you buy your first (or next) investment property, consider how you are going to manage it. Are you going to do everything on your own, or will you hire a property management company?