One of the most popular forms of passive income is renting out property. But, before you start buying properties to rent out, you’ve got to know that property management is no joke. While self-managing a single unit as a landlord could be manageable, the same cannot be said with multiple properties. Here are some reasons you shouldn’t be self-managing multiple properties.
It’s a Lot of Work
The whole point of getting passive income is that you’ll get a steady stream of income with little involvement. But once you start self-managing multiple properties, this concept is now out the window. Managing multiple properties is a big commitment and takes a lot of work. You’ll have to pay a lot of money, set aside a lot of your time, and put in a ton of work.
What a lot of people don’t understand when deciding to be a landlord is that it’s more than just collecting rent at the start of each month. A good landlord puts in a lot more effort than you’d expect. Remember, you don’t just own the place; you manage it as well. This means learning the housing laws, maintaining the property, and dealing with the tenants. Now, imagine doing all this in multiple properties. Yikes!
Prioritizing Is Hard
With multiple properties and tenants, you’ll end up stretching yourself thin. You won’t just have to learn to prioritize among your properties, but you also have to put into account other aspects of your life. Remember, if you’re renting out properties as passive income, then most likely you have other obligations such as your day job. On top of that, you also need to schedule time for your family, friends, and yourself.
But what happens when you have multiple things going on at once? Let’s say you’re dealing with a flood in one property when another tenant calls in a fit, complaining about their unit. Multiple property management isn’t just physically tiring, but it’s also emotionally taxing.
It’s Risky Business
You might not realize the risk involved in being a landlord. Now, it typically isn’t a dangerous job, but some things could go wrong. A tenant could be handling illegal drugs on your property. Or perhaps, conflicts between tenants could go grim.
And even if none of these happen and you’re blessed with law-abiding tenants, there’s still the financial risk. You could end up with property damage that your insurance company refuses to cover. Or perhaps you find yourself with empty units with no prospective tenants. Now, this could all still happen with a single property. But at least that would incur less loss than multiple properties.
Conclusion
Now that we’ve covered why self-managing multiple properties isn’t such a good idea, let’s move on to what you can do. You can still own multiple properties to rent out, but instead of managing them all by yourself, you can get a property management company to do the work for you. Leave it to the experts. After all, they are more qualified to do this than you, and they’ll make your life as a landlord a whole lot easier.
Let a property management company handle your properties. Orlando REO Professionals specializes in property management, real estate, and REO. Contact us now to get started!