real estate facts

Things to know before managing properties

PROSPECTIVE REAL ESTATE INVESTORS WHO HOPE TO BUY, HOLD AND RENT OUT

THEIR INVESTMENT PROPERTIES should first interview potential property managers before buying homes. While it's possible to find property managers willing to manage single-family homes or duplexes, the financial resource Bankrate.com notes that many property managers prefer to manage large apartment complexes instead. Managing properties is hard work, and without skilled property managers on their side, real estate investors may become overwhelmed by the responsibilities of taking care of their real estate investments while simultaneously trying to maintain their own residences. Before buying investment properties, prospective real estate investors should interview various local property managers or property management firms, inquiring about their fees and what is included in those fees. If the cost of hiring property managers drastically cuts into the profits investors hoped to make off their investment properties, they might be better off looking to invest their money in areas other than real estate. Prospective investors can compare the potential return on investment after the cost of property managers has been factored in to the return they might get from more traditional investments to determine if investing in real estate is a sound financial decision.