I'm slowly working my wife into the realm of cashing out refinance to buy an investment property but the big hangup I'm running into is the time it will take to manage tenents.
I understand some can be a pain in the but but moderate to good ones shouldn't take up much time. Am I wrong?
My father in law has two 4plexes and he is on the phone, it seems like all the time when he's home. He's the type that will always answer his phone no matter the time of day. And I believe that opens him up to disgruntled begrudery. From noise complaints to someone breaking the dryer from having nails in his pockets. I believe in hookups not the actual appliance.
How much time does it take to manage tenents once their in place?
@Chaz Moore - "How much time does it take to manage tenants once their in place?" That is inverse proportional with the time you put in screening/placing well qualified tenants, executing and reviewing with them proper lease documents and maintaining properties.
@Chaz Moore Do you know what type of area your father in law has these properties in? If they are in a bad area and the tenant class in lower that is probably why they require so much attention. Just a guess, but that is usually a common theme.
Have you ever asked your father in law if he thinks owning the properties is worth it despite the calls he gets?
We have 30 units in a couple of nice small Midwestern towns where life is generally 'good'. Our tenants are everything from retiree to factory workers, an accountant, office managers etc... a nice mix.
Since there are 3 partners involved we track our hours religiously to figure out how to divide income up. This include painting and maintenance on turnovers.
On AVERAGE we spend just under 2 hours per unit per month. With that said, the per unit range can vary from a high of about 40 hours for a unit down to about 1/2 hour for a unit.
Screening for GREAT tenants and having systems in place make a huge difference!
Part of it depends on the type of rentals you have. Ones in bad areas are going to be more work. Get something in a solid area that is in good shape.
The other part is how you handle things. Set up guidelines and boundaries. You aren't there to be your tenant's friend. Tell them to call if something breaks, otherwise, they are adults and can solve their own problems.