Success stories of people who became rich in real estate business are no urban legend. If you want the same route but you are not savvy in this trade, do not despair for everything is possible for a person who is willing to take risks and learn. Minimize wastage of time and resources by doing your homework well – and that is to grip a preliminary understanding of the various concepts about real estate or property investment until you find your niche.
Let us concentrate on the facet of investment. More and more people are becoming more excited about accumulating passive sources of income, which is commonly interpreted as making your money work for you (instead of the other way around). Investing in property is its classical example.
When investing in property, purchase of a real estate is involved for the intent to earn returns, either thru rentals or future resale. Combination of the two is also an option. To start of, you need to set an income projection, which is the very reason anyway why you would engage in this kind of business; you would also need to write a list of all the expenses that may be incurred and make sure to allot some margin for unexpected expenditures; vis-a-vis the potential risks that may arise. If tasks should go beyond these, then investment properties management becomes the next necessary.
Normally, in investment properties management, “who manages for whom” is the set-up. The property manager is responsible for the value preservation of the property while, again, accumulating monetary gains. The properties that may be subjected for such are residential and vacation properties, commercial retail space or industrial warehouse space. Property managers typically receive a fee, or sometimes a rental percentage for the real estate being managed.
Hiring a property manager is an investor’s leverage to attend to more essential obligations at a time. This is rather necessary for investors who do not live in the same area as their properties, or those who are preoccupied with a full-time job, that are unable respond right away to the tenants’ urgent needs or queries.
What are the key roles of a property manager?
Aside from structural maintenance, property managers filter the qualified tenants for the investor. To assure that you are getting the rights tenants, they will do the background check on employment histories, credit histories and criminal records of the applicants or even the existing tenants. These are vital. They also post in advertisement any sudden vacancy to keep the business ball rolling. To fuel the operation, they do the collection and disbursement of rent payments as well. A good property manager should always provide a regular financial report to the investor.
Investing in property should be frills-free if you know the basics, much better if you constantly educate yourself to become abreast of the changing trends in the market. Now that you have an idea of property investment and its management, you must be confident now to take a step further.