Investing in rental property is a smart move but being a property manager is not a walk in the park. It might sound like an easy way to make money but land lording is more than just collecting rent each month.
Managing a Property is a commitment.
Check out the list below for the things that you need to know about becoming a property manager.
- Property Management is not a 9 to 5 job, it is a Business
Managing a property is not about sitting on a beach to relax while you wait for your checks.
The life of a property manager is not about starting at 9:00 in the morning, go to lunch at noon and go home at 5:00 in the afternoon. The days of a property manager are more spontaneous than structured. You may schedule just one activity and it will turn into 2 or 3 if there is something that you need to address immediately.
Property management is all about business and no business will prosper without all the legwork.
- Local laws
State laws or local laws dictate the things that must be covered in the rental agreement. It regulates the tenants and landlords’ rights and responsibilities.
Local laws differ from state to state. Always check your laws.
- Property Maintenance
Expect property maintenance and always have a budget for it. Even though the property just went through a major rehab, expect that there will always be some repairs that would need to be done. Tenants want problems to be acted on promptly, most especially big ones like a leaky roof or a broken heater.
- Cash Reserves for Unexpected Expenses
Large ticket expenses like roof repairs, maintenance of appliances or fixing broken windows can be very costly. You will need cash for those unexpected emergencies.
Local and state authorities set some standards to maintain your property, failure to do so could result in fines.
- Making Money When you Buy
Invest and look for quality rental property in the best location. You cannot make money or sell for a profit if you don’t buy correctly.
Vacancies do happen so you should expect it to happen. Include vacancy turnover in your cash reserve.
- Cash Flow is King
Without cash, you cannot keep your business through good times and bad times. You should always have ample cash flow.
Being a property manager can be very rewarding. The fact that your property is able to provide a home to another human being is something that you can definitely be proud of.
RJ Pepino is Co-owner of Columbus Turnkey Houses alongside David Payerchin licensed Realtor with ERA Real Solutions Realty. Together they have bought and sold over 300 homes since 2005.
They offer investors a full-service turnkey real estate solution. Call today for a free consultation 614-285-3600 if you are looking for Columbus cash flow properties, Columbus wholesale properties, Columbus investment properties, Columbus real estate, Columbus turnkey houses is your premier source for Columbus investment properties.