Greetings Real Estate Investors!
The reality between how much something CAN MAKE between how much it actually DOES MAKE is literally the difference between success and failure in business. And this is a very common misconception among new real estate investors, most are very happy to look at how much income a property can make without actually thinking about how much it will make when it comes time to collect the rent…or more specifically how difficult it may be to collect rent on time.
Know That It Is a Business
Seasoned real estate investors know that real estate investment is a business and like any business it must have it’s separate departments for the critical components. The most critical component of owning a rental property is actually collecting the rent. It seems like an oversimplification but that is the truth if you do not collect the rent then you investment does not earn any money. It is one of the many differences between investing in real estate and investing in the stock market. You don’t have to go to Wall Street to cash out your stocks, but more it’s entirely possible that you will have to follow up with a tenant to collect your rent. This downside is an offsetting balance to the many other advantages that investing in real estate has over investing in stocks but it is something that must be dealt with if you are going to be a successful real estate investor.
Treat It Like a Business
Knowing that you have to follow up on rent collection and actually following up on rent collection are two entirely different things. Life is hectic and most real estate investors have regular jobs, own other companies or have other interests that occupy their attention. It becomes very difficult to follow up consistently. And once a tenant learns that you won’t bother them until a week or two after the rent is due they are going to take advantage.
Tenants Don’t Pay Unless Someone Follows Up
And it’s not because they are bad people (in most cases) it’s because they have incredibly busy complicated lives as well and they forget or they need to put the money towards something else. But the reality is that is not an excuse…the rent is due on the due date and if it is not paid on time then they should be issued a three day notice and imposed late fees immediately. But who has the time to go out to the property or contact the tenant to issue the three day notice? Professional Property Managers do. And who actually does it when they say they are going to do it? Real Property Management Miami.
We will follow up with your tenants. We will give them multiple options to deliver they payment. We will make sure that the money is deposited into your bank account so that you all you need to worry about is finding your next killer income property.
Call us at 305-517-1999 to speak with one of our property management specialists so that we can turn your investments into a money machine!
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