People often step back from their decision to buy a property, thinking about the cost and time to maintain the property. Everybody doesn’t have the necessary experience or tools to mend leaky faucet, or clean the parking lot during snow. Moreover, it may not be wise to invest in a property outside the owner’s geographical location.
You can simply hire a property manager to handle everything pertaining to your property. Property managers have the relevant experience to work at local, regional, and national level. They have the ability to handle different properties like medical office and multifamily as well. The defining characteristic of a property manager is his or her ability to address the problems of tenants, to retain them for as long as possible. However, there is a setback: you have to pay the property manager 3% of your property’s gross revenue.
You can always go for NNN investments. A triple-net lease dictates that the tenant bears the sole responsibility of performance, maintenance, and payment. This also includes all kinds of operating costs, insurance and taxes for the property. So, NNN investments allow the owners to enjoy the privileges of ownership without bearing the burdens of costs or property management.
NNN investments don’t relieve you of every landlord responsibility. Property tax payment, keeping the property leased, servicing any mortgage loan on the property, and collecting rent from the tenant are duties of the landlord. Any major renovation, like HVAC or roof, involves the landlord too. Besides, insurance related issues are to be taken care of by owners as well. However, when it comes to day by day operations, the owner has little or nothing to do. So, NNN investments are a good “armchair” investment.
Thus, NNN investments let you enjoy the fruit of investment real estate without toiling hard. But before you invest, get to know the degree of complexity and management costs of a prospective investment real estate.
