Owning Rentals that Take Little Time to Manage


#1

Hey all, I know alot of people that are interested in acquiring rental properties, but tell me they don’t have the time to deal with managing it. That does not have to be a deal breaker. Property management and turn-key operators are rather prevalent these days and finding a good one is feasible.

Become the CEO of a property instead…I wrote about the subject some more in this post…


#2

You could do that, or simply take well informed risks with single family houses. They tend to draw tenants who have more ownership mentality even in a rented home. Oddly, and even with duplexes, tenants tend to give less of a shit. I know when I rented an apartment, I was a lot less mindful of the property. Put the effort into standing up your first SFH and if you do it right, you can manage it yourself quite passively.


#3

We managed this one REALLY passively! But we just hired a manager for our 8 unit apartment complex. We have another single family we manage too - (but the same people have only been there for 5 years so far! ;)) https://www.makesmarterdecisions.com/weve-tenant-22-years-havent-raised-rent/


#4

Yes, if you do some legwork up front and have quality maintenance people self managing can be fine. I self-manage my properties, but have a flexible schedule. My good friends has a busy 9 to 5 job and has mgmt for all his properties and its what works for him. He doesn’t want to be bothered while at work.


#5

Very interesting post Vicki. Very pain free way to earn money over time. Glad it worked out so well for you.


#6

It all depends on people’s risk factor. Real estate isn’t for everyone. Some choose to spend their time on other investment vehicles. Good to point out the options though! :grinning:


#7

Thanks. We probably lost a lot of money by not raising the rent, but it was WAY too easy. Often a turnover of tenants (replacing carpet/painting, etc) eats up the rent increases anyway.


#8

Our rental story is very different. As teachers, we wanted to use our townhouse during the summer. So we find people to sign 10 month leases over the winter. The lease ends in May, we go to the beach all summer, and find new tenants in late July.
It is a considerable amount of work preparing for a new tenant, and finding new tenants.
Every new tenant is a risk, because when they are bad, they can be very expensive.
We’ve had 3 out of 4 good so far.
If we ever decide to rent for an extended time, and find low maintenance tenants, I will reward them by keeping the rent fixed.


#9

That is a very valid point Vicki. The money you save by not doing a tenant turnover is essentially an increase in rent. Your duration is a bit longer than normal, but I have gone up to three years without raising rent as I knew the tenants were good, wanted to stay but I knew they couldn’t afford more.


#10

Exactly, one should be diversified in their overall investment portfolio anyway. Real estate is one tool in the tool belt.