When I started with Michal almost 20 years ago the construction of the proverbial semi-detached house for sale was not an investment in real estate for us. But simply building a house for later resale at a profit. Back then, we had no ideas whatsoever about keeping the real estate for rent. Ba! It seemed to us completely pointless: incurring large costs for the purchase/construction of real estate only to rent it later e.g. several hundred zlotys? No sense!
Do you think the same?
Well, this entry is for you as it found
My Renting Apartment
I became interested in renting apartments only around 2011. Right after Michal “left” the hospital after unsuccessful surgery. Quotation marks for “left” are appropriate because Michal left the hospital in a wheelchair. Even though he went to the procedure as a fully functional bursting with energy 32-year-old. Then it was time for various reflections. Particularly not optimistic were those related to the hypothetical situation of Michal’s “no way out” of the hospital at all. What would his family his little children have a living prospect? In addition, Michal was then active in the form of JDG just like myself. If Michal was missing it would certainly also mean among others termination of corporate loans by banks.
Together with Michal and Piotr – my second much younger brother. Who at that time was also an active developer. We came to two conclusions:
- we need passive income which will appear “alone” in our accounts at regular intervals.
- JDG is not suitable for running a business – and after considering all the options that came to our minds based on our experience, we found that JDG should be properly banned as overall it has almost no advantages and it has a lot of very serious flaws. This is a topic that we have covered many times in various forums.
This is where investing in rudn enclave real estate came into play – as I perceive it today. Yes! I appreciated what I despised a dozen or so years earlier – real estate is rentable and gives a very predictable, regular income! Wow! This was what we were looking for. The regularity of income was a very important criterion. The question is how will it work in washing? Will we be able to get this income without our work?
Can the rental Income be Passive?
Many pseudo-experts small investors and maybe even not so much small investors. But people who cannot look more broadly – beyond their own negative experiences will tell you that obtaining completely passive income is impossible. In many investment situations. The constant care of the only expert. Which is the owner of the property may seem necessary – especially to the owner of this property. Fortunately, this is no longer a limitation for me. Because I know that many things can be done just as well as me – someone else.
Of course, on the one hand, it is about getting rid of the problem related to your bad habits – a symptom of Zoie-Samosa. But on the other hand. Also accepting the fact that you have to pay for servicing your real estate. Even if it is a payment for a company that you will set up yourself to manage the lease – as it is in our case. If you read our blog you’ve probably already come across the name Green Turtle. And yes: this is the brand of the company that deals with the management of rental apartments that we have created. Originally established to service our apartments. It now also manages apartments owned by other people or companies. Some of them handed over to ZŻ for a dozen, and some even for several dozen apartments.
Read more for: Real Estate Agent ever green
What do you think: why is someone willing to delegate the management of renting their apartment or a package of apartments instead of doing it on their own and saving a lot of money?
The answer is simple: this someone wants. Just like us to enjoy the most passive rental income instead of dealing with it daily. Now if you’ve thought to yourself. “Aha: no exaggeration. What is there to deal with? After all the apartment rents itself. “or “Aha: Robert is coming here with a fierce advertisement for the Green Turtle,” I explain right away:
- In the beginning I was managing the rental of my apartments and one thing I learned is that if you think the apartment will run itself you are just asking for trouble. And you certainly won’t have to wait long to wake up with a more or less problem. You must shape the relationship with the tenant in the right way: on the one hand, respecting the tenant as your business partner, you must present him with clear rules on which you want to rent the apartment. But on the other hand, you must be 100% consistent and you must react quickly to any situations that require it: from failure to pay the rent (contact with the tenant, clarification of the situation, etc.) to possible breakdowns in the apartment or the building or other completely unpredictable issues.
- my goal is not to advertise ZŻ in this entry. But to show how we have earned and organized passive income – so treat it rather informally. Are you reading our blog? Well, I want you to know what we do. I would also like to show you that we have a lot of experience when it comes to investing in real estate. And these experiences appeared along with the need to develop ideas for obtaining more and more passive income. In addition, there are currently a lot of companies throughout Poland that provide such services. I also use the services of one of them in the case of real estate located far away from the Tri-City and the surrounding area. Only here does ZŻ operate. The choice is therefore wide in the Tri-City itself you will find at least a dozen companies that I know about.
Does entrusting the management of the rental of my apartments to a specialized company rudn enclave Islamabad mean that I receive a completely passive income?
not – after all.
I have to pay property taxes settle monthly invoices etc. However these activities are typically administrative that I could also fully outsource. I do not do it. Because I like to have such a degree of direct control over investments – and I also issue invoices for me by ZŻ so basically it is enough for me to deliver them to my accountant.
On the other hand there is one more mega-important aspect of dedicating the management of your apartments. In my case it turned out that even though I have to bear the management costs. The remuneration of ZŻ – finally more money goes to my account. How is this possible? Well, it turns out that if someone is professionally involved in one field and not like me from a jump. He can perfectly see how the rental prices on the market change and can quickly react to these changes by raising the current rates.
If possible or lowering them when it is necessary to avoid a vacancy period. The second aspect is that as the owner. I did not have the right distance and it turns out that if I wanted my apartments to start working as soon as possible. I was simply offering them too cheaply. On the other hand, the ZŻ employee who sets the offer prices does not have this “additional burden” and in practice sets these prices at a higher (still market) level than I did. Summing up: in my case, when I entrusted the management of the apartments to the company, I got two things: peace of mind and more money.