The term, DIY (Do-It-Yourself), means something totally different when you’re a real estate investor. It may mean something different, but the concept totally applies. We’re not suggesting you pick up a hammer and nails and get your hands dirty. Although, if you have the ability, we’d never dissuade you from adding a little sweat equity to your investment. However, we’re suggesting that though we advise the convenience and professionalism found in hiring a reputable property management firm, there are always things that are better handled yourself.
- Manage the management—No matter how reputable the company, subcontractor, etc., it is prudent to do your due diligence and remain plugged in. Real estate investment is more than reading your (hopefully) ever increasing bank balances. Your property manager should foster a relationship by which they provide you with routine updates about every facet for which they are responsible. However, if they don’t, it is your responsibility to seek them out. At the end of the day, for them it’s a job but the pros/cons, gains/losses, success/dismal failure is yours!
- Legal considerations—Any legal considerations provided by anyone, is usually to protect their interests. There’s nothing wrong with that, it’s business. Make sure your legal interests are protected by your personal legal team.
- Taxes—Your property management firm can/will provide you with anything related and necessary to your tax liability or benefits. However, having a representative familiar with the current IRS requirements and updates, is another thing that is paramount. Being a homeowner opens an entirely different can of worms when it comes to business and personal income taxes. Having an investment real estate portfolio, completely changes the game.
Any company, worth your time and confidence, is going to lay out a detailed overview advising what they can/will do for you as the first order of business. Pay attention. They will also tell you, overtly or covertly, what they might be able to do for you. Don’t leave it to someone else to possibly figure out these 3 important areas of real estate investment. Carod Properties typifies professionalism in the spirit of excellence…in real estate. We are leaders in our field, as such, we will always advise you of what we can do for you and what you need to do for yourself!
