An income property is a type of real estate that generates revenue, generally through rental payments, for the owner. These properties can be residential or commercial and can be almost any size-- as small as a single family home or apartment unit, to larger than a multi-building office complex.
Regardless of the type or size of the investment, income property management is a lot of work. It requires a thorough knowledge of the surrounding property market to set a competitive rental price, the daily interactions with tenants, contract workers and prospective renters, and the constant upkeep of the both the physical property and the administrative and financial information to go with it. Many income property owners turn to professional management companies to oversee their properties and handle the day to day responsibilities the investment requires. In doing so, owners are able to retain the financial benefits of the investment property without having to give up any of their time, and have the advantage of a professional managing their investment.
Income property management is a common occurrence with investment real estate. Indeed, there were approximately 329,000 property managers operating in 2006, and the industry is expected to grow by 50,000 managers by 2016.1
A valuable alternative to other investment avenues like the stock market, millions of properties across the country are owned specifically for the goal of generating income. Indeed, with so much interest and investment in income properties, professional management continues to be a thriving industry.