It’s easy to see the allure of producing and managing rental properties. If you pick the right property, in the right area, and you manage it responsibly, you should be able to generate passive income from it. You’ll collect money from rent, use those proceeds to pay for your expenses, and pocket whatever is left.
A single rental property isn’t going to make you rich or allow you to retire, but it is a crucial part of a broader portfolio that can help you accumulate wealth, make consistent income, and get exposure to the real estate market simultaneously.
However, many people are turned off from the idea of entering the real estate game because they perceive it as being a lot of work. Indeed, landlords and property managers have lots of responsibilities.
But is it possible to manage everything from a simple smartphone?
The Role of a Property Manager
If you hire a property manager, you won’t have to do much with your property on a recurring basis. Your property management professionals will take care of almost everything on your behalf, in exchange for a fixed percentage of the gross revenue you collect. In many situations, this is a great deal; you’ll sacrifice a bit of profitability, but you can manage your properties completely hands off.
If this is the case, you can definitely manage a rental property using only a smartphone. You can keep in touch with your property managers, intervene and make decisions as necessary, and allow your experienced professionals to handle most of the grunt work.
Even if you do decide to manage the property yourself, you can tackle most of the responsibilities using only a smartphone and a couple of apps.
Consider:
· Repairs and improvements. Many rental properties require repairs and improvements to be livable and attractive to tenants. While you may need to be physically present for inspections and to coordinate contractors, you can coordinate most repairs using only a smartphone. If you’re living remotely, you can always have a liaison operating in your stead.
· Property marketing. You’ll also need to market and advertise the property, or else tenants won’t be able to find it. There are many services that can help you coordinate this, most of which have convenient smartphone apps for the convenience of their users.
· Tenant screening. While not strictly necessary, it’s very advantageous to screen your tenants before allowing them into your property. You need to validate their criminal history, income, and other factors to ensure they’ll be respectful and dependable tenants. Again, many apps can help you with this.
· Rent collection. If you have a property management platform, you can mostly automate and expedite the process of rent collection. If tenants fail to pay rent on time, you can follow up with them with a text message or phone call.
· Issue resolution. Issues are bound to arise in any rental property, but most of them can be resolved through communication and coordination with repairmen. As long as you’re on call and communicative, you can manage this with a smartphone only.
· Recordkeeping. Things get tricky when it comes to recordkeeping; you are responsible for maintaining records on how you manage your rental property, for taxes and other purposes. Many smartphone apps can help you do this, but some people find it easier to manage records on a laptop.
· Tax planning. You are going to owe taxes on the money you make with your rental property. It’s your responsibility to understand local laws and to calculate your taxes appropriately. However, most of these tasks do not require any specialized equipment.
· Evictions. If you are forced to go through an eviction, there are some responsibilities that you can’t do through a smartphone, such as sending a certified letter and possibly attending hearings in court.
· Long-term strategy. You’ll also need to think about your long-term rental management strategy. What other properties are you planning to acquire? Are you planning on scaling up operations? A smartphone can help you research, but you’ll still need to visit those new properties or work with someone who can.
The All-Powerful Modern Phone
Because smartphones are so powerful and versatile, they can handle nearly all responsibilities associated with managing a property. However, if you do choose to manage things yourself, you’ll need to take care to stay on top of these responsibilities.
· Centralize your management. It’s very hard to maintain good records and stay on top of communication if you’re using many different apps and platforms. Accordingly, you should try to centralize everything in one convenient system.
· Stay organized. It’s also imperative that you stay organized from the very beginning. Keep track of all your income and expenses, as well as other documents relevant to your management.
· Be proactive. Tenants expect you to communicate with them in a timely manner. Ideally, you’ll respond to all tenant communications within 24 hours. This requires you to pay attention to notifications and keep note of any standing issues you haven’t yet addressed.
For many people, especially newcomers to the rental property game, the best move is to simply hire a property management company and remain a relatively passive landlord. But even if you take on the responsibilities yourself, most of them can be conveniently handled with this simple handheld device.
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