If you’re considering jumping into the world of real estate, there is a lot to think about before taking the plunge. TV shows can make buying, flipping, and selling properties look glamorous and breezy, but the reality is that it takes hard work. Here are some items to consider when deciding if real estate is the right fit for you.
It Takes a Team
Property management isn’t a one-person operation. Ask anyone who runs residential properties, and they will tell you that you will need a team of great people to be successful. Steven Taylor, like most property owners, relies on several essential parties to help his properties run smoothly. You will need on-site help, such as office staff, routine and emergency maintenance teams, and landscape providers. Off-site, you need to find trustworthy lawyers, tax specialists, and insurance agents to help your business thrive.
It Takes Impeccable Organization
Organization is key to opening rental property doors. You have to keep all of your records in order and easily accessible. In addition to lease agreements, you need to keep tax records, payment records, and a schedule for late fees and broken leases. You need to create a policy around subletting and tenant screening. In addition, you should take photos and store them for documentation of every unit before and after it is occupied.
It Takes Tough Love
Being a Landlord can be exciting and lucrative, but it has its challenges, too. Family and friends may start asking for favors or to rent from you at a discounted rate. This can be hard to navigate, but it’s always in your best interest to enforce the rules no matter the tenant. You need to protect your property at the risk of losing it, so you will need to set stern policies for all renters.
Buying and managing commercial properties isn’t for everyone, but it may be right for you. Consider these factors when planning your path to becoming a real estate owner.