More than any other income property type, residential property will bring you into close contact with those renting or leasing your property. Possibly most important part is screening those you rent to. Background checks, calls to previous landlords, and searching interviews can save you a lot of headache and money down road.

It's likely that at some point in tenancy something will break or malfunction. If you have ability to replace windows or wiring, know how to fix an A/C or refrigerator, or have rudimentary plumbing skills, chances are you will save some money by performing these tasks yourself.

Sometimes dealing with tenants can be hardest part of owning residential income property. How well can you deal with angry, demanding people? Do you stay cool, calm, and collected in tense interpersonal situations? If so, you'll be prepared to deal with some of issues likely to crop up during your management experience.

Conclusion

It's important to keep your goals in sight when managing a residential income property. Sometimes it's easy to get bogged down in day-to-day duties of running property that you lose sight of making a profit. Know your rights as a landlord; know your bottom line as an investor. As with any investment, having an accurate idea of your time horizon will, to a large extent, dictate amount of effort and money you should put into your income property.