Single-family rental real estate investing offers a range of benefits that other asset classes can’t match, but it also involves a bit more involvement from the investor. That’s because a home is a physical structure that needs to be maintained and filled with tenants. While different entities can be hired to assist with these tasks, the landlord has to act as a manager and ensure the property runs smoothly. Without these efforts, it’s easy for a rental property to become a burden that doesn’t live up to its potential as a long-term investment.
What makes single-family rental real estate appealing
Rental real estate provides excellent benefits for anyone who wants to diversify their investment portfolio with assets that are disconnected from the stock market and its inherent fluctuations. By selecting properties in the correct locations across the country, investors can benefit from ascendant local real estate markets and earn consistent rental income while building equity in a physical asset. That combination makes real estate particularly worthwhile for experienced investors who have already built wealth through traditional investing. At the same time, these individuals may be unprepared for the responsibilities associated with rental home ownership.
A landlord’s role
The landlord needs to keep a building in rentable condition, consistently locate tenants and collect rents. These are surprisingly complex tasks, and can quickly overwhelm someone who already has a day job and many other investments. For this reason, many landlords turn to property management companies for assistance.
Without property management, a landlord is solely responsible for advertising a rental and ensuring that the building adheres to all local laws. Ideally, property management companies are able to leverage their rental market connections, understanding of local trends and knowledge about competitive rental properties to better target ads and keep a building consistently occupied with tenants. Unfortunately, all property management companies are not created equal, and it can be a financially painful game of trial and error to discover which company best suits an individual landlord’s needs and goals
If a landlord is able to find an effective property management company, and the company can help the owner keep up with building maintenance. For obvious reasons, a well-maintained property will be easier to rent, which provides more consistent income to the landlord. Unfortunately, properly maintaining a property requires a high degree of trust between the property owner and management company, especially if the owner does not live in the same area as the rental home.
It should be clear that being a landlord is difficult, despite the positive elements to rental property ownership. Luckily, HomeUnion eliminates the problematic parts of SFR ownership and allows owners to simply enjoy the benefits.
How HomeUnion helps
When a user registers on HomeUnion’s site, he or she gains access to hundreds of prevetted properties in the best metro areas for single-family home investing across the country. Investors who use this database are not limited by geography, and can choose the properties that best fit their investing goals. If investors were to purchase these homes on their own, geography might make it difficult for them to act as effective landlords.
HomeUnion handles this issue by including property management as just one standard part of our full-service investment solution. This means investors’ properties are expertly managed with minimal efforts. Investors who want to stay informed can learn about any events at their rental homes through an online portal, but HomeUnion’s system makes it easy to take a hands-off approach. If you want to start investing in real estate, but the prospect of becoming a landlord is too daunting, contact HomeUnion for a simplified solution.