If you’re looking for a way to earn ongoing passive income, then owning rental property can be a great way to do it. But just like most other types of investing, there are actually different types of rental property owners.
So, which type are you (or which type will you be in the future)?
The most common types include:
- The “do it yourself” landlord. The do-it-yourself landlord is someone who owns investment real estate and takes care of all the maintenance and management duties on their own. This can include marketing for and screening potential tenants, collecting rent, providing regular maintenance to the property(ies), and responding to emergencies. In this case, the more properties you own, the more time you may need to spend taking care of them.
- The “accidental” landlord. Accidental landlords may or may not have planned to own rental real estate. But, due to the inability to sell a home that they’ve moved out of, having tenants can be more beneficial than carrying all of the expenses on an empty home. An accidental landlord may not necessarily know all of the ins and outs of tenant screening, rent collection (and possible eviction), and taking care of repairs.
- Investors. True real estate investors have a goal of purchasing property and building up a portfolio of real estate investments. These individuals enjoy receiving passive income, but they are also focused on increasing the equity in these assets over time.
Regardless of which “landlording” or investor type you fall into, managing and maintaining rental properties can take up a significant portion of your time. With that in mind, there are ways to reduce your own “sweat equity,” and delegate the time-consuming tasks to an experienced property manager.
If you own rental real estate in Orlando and/or the surrounding Central Florida area, give us a call to find out more about how adding a property management team to your business.