The property management company is a really good idea for someone who would like to earn a decent income without taking risks.
My foray into property management was purely by chance. I had about 15 flats in Dundee and employed a complete time handy man to collect rents and sort out any repairs.
My friend Chris knew my properties were well handled and he asked if I would look after the apartments of his mother. I knew she was not and because of her health, in the previous year half of her flats had lain empty. I agreed and began renting out her properties.
I managed to receive up her occupancy to over 90%. My charging arrangement was very simple as I kept 10 percent of her lease and she also paid all costs. She was delighted and told her friends who approached me to do the exact same for them. Being occupied but not wanting to say no straight away I offered to supply the service but at 15 percent of the monthly lease. They agreed.
Word of mouth got around and soon I had to begin turning people away because I was far too busy managing my packaging business to perform property management time! Had this company not been performing well I could easily have begun properties full time.
Following his renters left, once among my customers wanted a sale, I managed to buy a couple of apartments at knock down prices. They offered me the properties for the price they had bought them for a couple of years back.
I knew the market had risen substantially since then and bought them right away. I spent a few weeks up doing them and needed them rented out very quickly. When property prices started rising strongly I offered both of them, making cash to miss out on the real boom in prices!
If you have time on your hands why not think about managing other people’s properties? Be warned though that you are on call 24/7 if a crisis occurs at any of those properties. This post inspired my article, be sure to check it.