When you buy a property as a town rental investment, you join the world of investors who recognize the value of an investment that’s as solid as the ground we walk on—one with the additional advantage of providing a steady cash dividend. With those dual advantages, you’d wonder how other investments can offer much competition, were it not for one major consideration: your time.
That’s the part that not everyone fancies. A local rental investment is one that simply requires more active management attention than many others. You don’t have to check on your bond portfolio regularly, but when you have a house or condo rental, it’s a good idea to do so. You don’t have to monitor your stock investments to be sure you’re in compliance with the latest local, state, and local fair housing rulings, but for an area rental investment, it’s prudent. Your IRA holdings don’t require your attendance at seminars on risk management, but hands-on landlords sometimes show up at them.
No wonder everyone isn’t automatically drawn to rental real estate investments.
The truth is, area investors with sufficient free investment capital are also likely to be people whose time is at a premium. They’d like their investment to make life easier, not more complicated. Who can blame them?
As a strong proponent of the advantages of town rental investments, I’m happy to point out that there are two major solutions to those built-in drawbacks.
The easy solution is what folks who are close to retirement age sometimes discover about themselves: they like being landlords! If their time is actually not in critically short supply, retirees (or in today’s more common circumstance, semi-retirees) who have mastered a career or two of management challenges often find the hands-on administration of their rental investments to be a relatively low-intensity assignment. No sweat, since they have enough free time to do their due diligence where needed. Piece of cake!
The other solution is what busy people in leadership roles have learned to use in other spheres: delegation. And the lucky fact is, there is a whole industry staffed and ready to accept the assignment. They are our local professional property managers—eminently qualified and experienced in handling the management burdens their clients send them. Their fee can cover any part or all of the landlord’s duties, from composing tenant advertisements to collecting the rents…from monitoring Fair Housing compliance and supervising maintenance emergencies to preparing rigorous financial documentation.
This month’s market features some terrific town rental investment property offerings at prices that make them worth exploring. Give me a call for more details!