Property Management and Real Estate Investment
Throughout many of our other blogs we have talked about real estate investing and how it’s possible to create wealth and financial freedom through real estate investment. Throughout this article we are going to talk about property management real estate investment and how it can be a very lucrative investment move in 2016 and beyond. As a real estate investor, property management can be a very lucrative move in a variety of ways but it’s also something that can be quite demanding. Managing a real estate investment property can be challenging and time consuming, but the great thing is that as a real estate you won’t have to deal with the minor details of property management.
The reason for this is because many (or I should say most) real estate investors only participate within this investment market in a passive way. And better yet, having experience as a property management professional isn’t a requirement.
A recent Bigger Pockets article talked about the bigger picture and how property management can be really worth it, despite demands. The following article talks about this and how real estate investors can benefit from this market:
What Ideal Property Management Looks Like
Solid property management teams make sure they are in constant communication — especially about the big things, the milestone events. While they don’t overload investors with updates, they don’t hesitate to offer reports, documentation, and property status updates. Good property managers are organized and never try to hide things from you; they’re proud of the work they’re doing and have a genuine interest in providing quality services.
That does not mean things will always go smoothly. There can and will be hiccups, but a simple peace-of-mind communication goes a long way, and the best of the best make this a standard operating procedure.
Interview questions when hiring a property manager might include:
- How often can I expect to hear from you?
- Will that be by phone call?
- What is the average response time for your team to tenant phone calls, maintenance phone calls and owner phone calls?
You Never Have to Ask Where Rent Is
Good property managers know how to track down rent payments. They don’t allow themselves to bend in the rules — they make expectations for payment clear and have the organization and prowess to ensure you get paid on time. Really good management companies have systems in place to operate on a daily basis all the way down to how a rent payment is processed and how quickly rent payments are sent to owners.
When speaking with a property management company, they should be able to communicate very clearly what that system is and what the process is for making sure that is a smooth process. If they cannot give you clear and defined rules for when rent is collected, when it is late, how late payments are collected and ultimately how and when payments are sent to owners, then they are not up to the level of the best in the business.
You can take a read the rest of the article here.
If you’re someone who would love to learn more about real estate investments and how you can become a property management real estate investor, be sure to reach out to our team at Diverse Real Estate Management and set up an appointment. If you’re new to the industry and thinking about investing in real estate, we would love to talk to you about the many options you can take advantage of.