Opinions please.

[Lady Flipper]

I have only had a duplex I owned while living quite a ways away and I hired a local agency to tend the place. It was pretty much of a disaster.

I decided a long time ago not to touch anything larger than a 3plex, because of local laws regarding rent control and such. If you have to do major repairs to a big building with rent control, it can bite you badly.

These rent control laws are in effect most anywhere, usually stopping at 3plexes and 4plexes.

It's something to think about, rent control can cause major headaches and I have seen buildings abandoned because of it.

[House on the Prairie]

I actually have some experience in property management, so I hope I can help out a bit here (and I apologize for being a little late to the table).

Some brief helpful hints:

1. Run a credit check on all tenants.
2. Be aware of any Fair Housing laws in your area. In some states, these laws apply to you if you have as few as 4 apartments/rental homes.
3. Consistency is key. I agree with the above post--establish when rent is due, when it is late, and what happens when rent is not received on time. Learn the filing process and then do it. Renters will have more respect for you and the timelines if they know you mean business.
4. Require your renters to have rental insurance. It's cheap (like $14/month) and it helps you maintain coverage should something happen.
5. Don't be afraid to provide incentives for great tenants. The biggest reason great tenants move is to buy a home of their own. Another added bonus--you can provide excellent service and also maintain your investment if you offer to have their carpets professionally cleaned when they renew, or to change out the bathroom vinyl when it needs it, etc).
6. Make sure you are clear with the renter as far as how the security deposit will be handled. Walk the home with them when they move-in to document the condition when they accept the keys. Let them know how they can increase their chances of receiving their security deposit back, etc.

On another note, don't forget to advertise on craigslist.org when it comes time to list it--it's free and it works.

Hope this helps!

[flip_it_fast]

I think if you did hire some type of manager or "super" for the apartments that you really should still keep a good eye on what is going on. This would be a big investment for you and you certainly would need to keep on top of things.