Passive income is always desirable. Who doesn’t love the idea of reaping in wages without doing much work in the long-term? However, some may wish to be more involved in the process. When dealing with real estate, one has many options from which to choose and can take on the role of a landlord or a real estate investor. To see which one might be a better fit for you, read the brief analysis below.
Landlords can own residential and commercial properties and rent out the units to tenants. They are usually more engaged in the administration of the property than a real estate investor might be. Landlords should be prepared to handle screening tenants, tracking late payments, making sure lease agreements are met, maintaining the property, and possibly handling evictions. Landlords should get to know the neighborhood and economy of their prospective rental and be prepared to handle all of the responsibilities and unforeseen costs. Alternatively, a landlord can hire a property manager in order to focus on other work or interests.
Real Estate Investors
Real estate investors may have some DIY property renovation skills, but their role generally focuses on the acquisition of properties. The goal is to strategize and expand their real estate portfolio. When they find a property with potential in itself and in its context, they can purchase it, refurbish and improve its overall condition, and sell it for its new value later on. Real estate investors repeat this process with multiple properties, while keeping some of the properties long-term. Because managing properties can easily become a full-time job, investors may hire a property manager to take care of building maintenance and tenant issues.
Is One Better Than the Other?
Neither is better than the other. In fact, a person can do both. The more diverse your portfolio as a landlord or a real estate investor, the more padding you have if one of your properties suffers. Some people may even prefer to be more hands-on with the maintenance, while others primarily enjoy buying and selling prime properties. For a more in-depth understanding of what your options are, or if you are seeking a property management company, talk with the professionals at Clagett Enterprises today!
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook, Twitter, and Pinterest.