Before you embark on a new journey as a rental property owner, you’ll carefully weigh every pro and con. You’ll look for what advantages you can leverage immediately, along with those potential pitfalls that always trip up first-time property owners. Along the way, you may have also encountered some advice that may not be all that reliable.
In fact, there are some misconceptions and myths out there about rental property ownership and management that might misguide your decision. Today, we’ll shed some light on those potential myths and debunk them so you can make the most informed step forward.
Myth #1: You’ll Make Bank without Lifting a Finger
You might run across rental property ownership stories of those who got lucky with immediate surges in cash flow. But the reality is that rental management is going to require some work for it to be successful in the long term. Approach investing as you would starting a new business. Create a plan for every facet, including purchasing the property, maintaining it, marketing it, and growing its value. Then carve out a kind of business plan, with goals in mind, to keep yourself on track for financial success.
Myth #2: You Need to Know Real Estate to Successfully Manage Rental Property
Don’t be discouraged if you come across suggestions that say you have to be a real estate agent or have extensive real estate knowledge to be successful as a rental property owner. Anyone can buy and rent property. If you decide you’re not as versed as you need to be to make decisions, you can always rely on the expert help of a rental property management partner like Axel Property Management to guide your efforts. And surrounding yourself with real estate expertise will ensure you embark on your investment journey successfully.
Myth #3: You Can Rely on Your Instincts to Vet Potential Residents
Even if you think you have a gift for distinguishing good residents from bad ones, successful rental property management and resident vetting cannot be guided by instinct alone. These are not decisions you’ll want to leave to your gut. Pre-screening candidates requires thorough and consistent processes to be effective. You’ll need to be ready to verify employment history, rental history, and income levels.
Myth #4: You Can Only Operate Properties Close to Home
There are some industry opinions out there from those who will tell you it’s best to live near your rental properties so you can have a hands-on approach to management. And while it is a benefit to be able to drive by and check on your own property, it’s certainly not a requirement to be profitable. In fact, having the right rental property management partner can mean you’ll always have a dedicated representative on your behalf, with eyes and ears on your property. Some of the most successful property investors don’t live anywhere near their properties.
Myth #5: You Have to Be Wealthy to Invest in Rental Properties
There’s another rental property ownership myth out there suggesting that only the wealthy can become successful property investors. Consider talking with your financial or lending professional to explore just how many programs are available to help people afford and successfully purchase properties. With the right loans and fiscal advice, you could have a portfolio of properties under your belt before you know it.
Myth #6: Fixer-Uppers Are the Quickest Money Makers
It might be assumed that foreclosures and fixer-uppers are the quickest moneymakers. But before you jump in and stroke a check, get an inspection. Have a professional go through the property first so you can itemize and budget what repairs and upgrades are necessary to make it a marketable and livable space. Some fixer-uppers can be money pits, not moneymakers.
Myth #7: You Can Handle Property Maintenance Yourself
Maybe you have a little knowledge about homeownership or a background in the trades or construction. You might presume you’ll be able to handle your property’s maintenance on your own. Sure, you might be able to fix a leaky faucet or tighten down a loose railing. But there are some maintenance tasks that should be left to the professionals. Additionally, the most veteran and savvy investors will tell you to avoid handling your own maintenance at all. You could end up making a seriously costly mistake or experiencing landlord burnout with fielding resident calls and chasing repairs all the time.
Don’t be quick to jump on all the advice you find about rental property ownership. And to take all the heavy lifting out of buying and managing your first or tenth property, let Axel Property Management be the ultimate guide you need to be successful and profitable.
