Investing in real estate is a great way to make money. Moreover, contrary to what most people believe, being a landlord doesn’t have to be a full-time job. You can own and rent out a property part-time as long as you are creative about it and open to different possibilities.
Here we have put together a list of tips on how to invest in real estate part-time while keeping your 9-to-5 job and having free time to spend with your family and relax:
1. Invest with a Partner
You don’t have to be a solo investor in order to make money with real estate. Indeed, real estate partnerships are an excellent way to invest in properties for beginners as well as for part-time investors. You can frame your partnership in different manners to assure that it serves best your interests and those of your partner/s.
The bottom line is: Investing in real estate through a partnership allows you to be a part-time landlord in addition to sharing the investment risk with someone else.
2. Go for Professional Property Management
Becoming a real estate investor doesn’t mean that you have to do all the work related to owning and managing a rental property on your own. You can hire a professional property management company which will take care of all aspects of your property from marketing your rental and screening tenants, through collecting rent on monthly basis, to cleaning, maintaining, and fixing your property. Don’t worry that working with a manager will eat into your profit. Property managers are professionals who will be able to decrease your rental expenses and increase your rental income, so their fees will be totally worth it.
Most importantly, you will be able to keep your sanity and your normal lifestyle as a part-time investor.
3. Build a Solid Real Estate Network
Even if you invest with a partner and use professional property management, we cannot emphasise enough the importance of building and maintaining a network as a real estate investor. This will be your go-to resource for anything you need, whether it is to buy another property or sell yours, hire a handyman to fix up your rental, or look for tenants.
A strong network is of invaluable importance, especially for part-time investors who want to save time and energy and work in the most efficient manner possible.
4. Rely on Technology
We live in the 21st century, and technology is dictating every aspect of our life, including the real estate industry. As a real estate investor, you have to use technology so that you not only save time but also increase your efficiency and stay competitive in the business. When buying an investment property, use an online rental property calculator which will help you locate the most lucrative properties. When screening tenants, use an online tool. If you go for short-term rentals, let your guests in and out with an online door locking and unlocking app. These are just a few examples of websites and apps which you can use to automate the process of being a landlord and a real estate investor.
Technology is your best friend in the 21st century in your quest to investing in real estate part-time.
5. Rent Out on Short-Term Basis
Long-term rentals are not the only way to rent out your property. In fact, short-term rentals – also known as vacation home rentals – have been becoming more and more popular in recent years after the emergence of Airbnb.com and other similar platforms for sharing your home. Data from Mashvisor, a US-based real estate data analytics company, shows that short-term rentals provide better income and higher return than long-term, traditional rentals in many major US real estate markets. For instance, the cap rate – a metric for return on investment in real estate – for short-term rentals in Orlando, FL is 3.0%, while the cap rate for traditional rental properties is only 1.7%.
Moreover, when you rent out on a nightly basis, you don’t have to be a landlord year around and can easily manage your rental business part-time. You can also hire a vacation home management company. There are plenty of them which will take care of all aspects of your short-term rental while charging very reasonable fees.
If you are considering starting a career in real estate investing, remember that you don’t have to be committed full-time. You can easily be a part-time investor as long as you set up the right processes and relations.