Are you looking to get started in real estate investing without breaking the bank? House hacking might be the perfect solution! This strategy allows you to live in a property while renting out the
other units to cover your mortgage and expenses. It’s a fantastic way for new investors to gain
experience, build equity, and generate passive income. However, even if you’re living right next door
to your tenants, hiring a property management company is still a smart move. Here’s why.
What is House Hacking?
House hacking involves buying a multi-unit property (like a duplex, triplex, or fourplex) and living in
one unit while renting out the others. Some investors even house hack by renting out extra
bedrooms in a single-family home. The rental income helps offset or completely cover your
mortgage, making it an affordable way to get into real estate investing.
The Benefits of House Hacking
- Lower Housing Costs: Your tenants’ rent contributes to your mortgage, potentially allowing you to live for free or at a reduced cost.
- Build Equity Faster: As your tenants pay rent, you’re building wealth by increasing your property’s value over time.
- Great Learning Experience: House hacking is a hands-on way to understand property
management, tenant relations, and the real estate market. - Easier Loan Approval: Since you’ll be living in the property, lenders often offer better
interest rates and loan terms compared to traditional investment properties
Why You Need Property Management – Even If You Live Next Door
Many house hackers assume that because they’re close to their tenants, they can handle everything themselves but that’s often a mistake. Here’s why hiring a property management company like Gabriel Property Management is still essential:
- Professional Boundaries & Tenant Relationships: Living near your tenants can blur the lines between landlord and neighbor. A property manager acts as a buffer, enforcing lease terms professionally and handling issues without making things personal.
- Rent Collection & Lease Enforcement: It’s easy for tenants to take advantage of an informal landlord-tenant relationship. A management company ensures that rent is paid on time and that lease agreements are followed. No awkward conversations are necessary!
- Handling Repairs & Maintenance: Just because you live nearby doesn’t mean you want to be on call 24/7 for repairs. A property manager coordinates maintenance and emergency repairs so you don’t have to.
- Tenant Screening & Placement: A bad tenant can turn house hacking into a nightmare. A property manager screens potential tenants to ensure you get reliable renters who pay on time and take care of the property.
- Legal Compliance & Protection: From fair housing laws to eviction procedures, property managers stay updated on local and state regulations so you don’t risk legal trouble.
Final Thoughts
House hacking is an excellent way for new investors to enter the real estate market, but managing tenants even when they’re just next door can be challenging. Hiring a property management company ensures that your investment remains profitable and stress-free while allowing you to enjoy the benefits of house hacking. Thinking about house hacking? Let Gabriel Property Management help you handle the hard work while you focus on growing your real estate portfolio! Contact us today to learn more.
Your Property, Our Priority. Stay Updated with Gabriel Property Management.