Investing in rental real estate can be a great way to increase you income and your overall net worth. This is especially the case in an area of quickly appreciating property. But doing so can also entail a great deal of time and work, depending on just how involved you are with your properties.
If you’ve been spending a lot of time dealing with tenants and fixing leaky toilets, you could be saving yourself some money, and ultimately netting out a bit more on your rental income. But, you may or may not be making the best use of your time.
When it comes to rental real estate, there are actually two different types of property owners. On the one hand, you have those who own properties that are all in one general area. These investors can easily keep an eye on what is happening with their investments, and they also have the know-how in terms of performing much of the necessary maintenance. Collecting the monthly rent is also one of their duties. These individuals would typically fall into the landlord category.
Landlords can in fact do quite well. However, in terms of expanding your portfolio of properties, there is only so much time in the day to take care of all of the investments. So, at some point, a landlord may be limited to the number of investments they can take on.
A real estate investor, on the other hand. tends to do more managing of his or her investment portfolio, but they don’t spend their time actually working on their properties. In other words, they work on their real estate business, but not in it. Going this route can allow you to free up time seeking additional investments – and in turn, additional sources of income and appreciation.
One of the best ways to allow yourself this time freedom is to work in conjunction with a property manager. Doing so means that property maintenance and dealing with tenants will no longer be on your to-do list. But, you can still very much participate in the financial benefits of being a property owner. For more information on how you can profit from your properties without having to be hands-on, Contact Us.