Real estate can be a very lucrative way to invest your money, but often people are turned off of going down this route because of how much work is required to get things up and running. It is not easy to find the right tenants and manage them every month as they have different questions and problems they want to be sorted. Stocks and other investment opportunities don't require this much effort, and so many people just turn to them instead. However, with a good property management agency taking care of your portfolio, there is next to no work.
A Helpful Middle Man
Most of the time you think of companies that perform intermediary tasks as kind of useless, but in the case of property management, they could not be more helpful. They deal directly with your tenants, fixing problems that they might have (such as plumbing or electrical issues), conducting routine inspections, and ensuring the rent is paid. Basically, unless there is a major decision that needs to be made, a property management company takes care of almost everything to do with your real estate portfolio, and for this effort, they generally only charge about 10%, sometimes even less.
Finding The RIght Tennants
If you haven't yet found good people to rent to, then your property management company can do this for you as well. They often have a list of contacts of potential clients, but if they don't find anyone suitable, they can advertise your house better than you could on your own. They also can conduct open homes, answer questions, and generally act in your place during this process. If you hate the idea of working long hours to find a new tenant, then simply don't do it, let your property management company take care of it.
Easy Money Flow
While it might be hard to let 10% (or thereabouts) of your rent disappear, when you consider that it eliminates all of the work associated with being a homeowner, there is no simpler choice. Every month you get a check or a deposit into your account and, because you have more free time, you can use this money to invest in more and more property. If you just want the one property, then you can diversify your portfolio with your earnings and use them to support more risky ventures. Your property will still be there when you come back. continuously making money.
If you're wanting to make money from your property but feel you don't have the time, consider hiring a property management service.