With the lower returns being seen on many investments these days, it makes sense that many people are turning to real estate for growing a retirement nest egg. There are even ways to use a retirement account to purchase real estate if you follow the regulations involved. If you haven’t retired yet, however, maintaining even one investment property could stretch your available time uncomfortably. Utilizing a property management company is the best way to keep from getting overwhelmed. It also opens additional opportunities because you can invest in properties anywhere instead of just those close to where you live.
If you are considering buying an investment property and will be using a property management firm to handle it, be sure to include that cost in your analysis of the value of the property. It is possible to get the return you want while having this expense, provided you bid on it at the appropriate price. A commercial real estate agent can help you with the analysis if this is new to you.
Even if you were to go into real estate investment as a full-time occupation, you are still limiting yourself to what you can reasonably manage yourself. Use a property management firm for the most time-consuming aspects, and you’ll be able to grow your real estate portfolio without those restrictions.
Select a property management firm that has experience and the flexibility to provide you with the services you need. They can collect rent, be the contact person for your tenants, arrange repairs, and manage expenses, all based on how you set things up. You can be involved to whatever degree you wish or be completely hands off. Communication is key to getting the results you desire.