There's a version of real estate investing that looks like driving neighborhoods on weekends, hunting for “for sale” signs, and attending local real estate auctions. That model can work, but it only stretches so far. Your geography becomes your limit, and not every local market offers the returns you're looking for.

There's another version. Your portfolio spans markets you've never set foot in, is managed by a team you trust, and generates passive income without a single weekend scouting trip. That model works, too. And it scales.

Most people associate spring with homebuyers: open houses, bidding wars, "for sale" signs popping up like wildflowers. But for passive real estate investors, spring is a natural checkpoint and the perfect opportunity to reassess. Tax season just wrapped, fresh market data is rolling in, and summer (historically one of the busiest seasons for real estate activity) is right around the corner.

If you haven't touched base with your portfolio advisor since last year, now's the time to change that. Here's why Q2 is uniquely positioned as the best moment to have that conversation.

Property management can make or break your investment returns. Even though they know how important it is, experienced investors sometimes struggle to identify when it's time for a change—after all, if things seem to be running smoothly on the surface, why rock the boat?

The truth is, mediocre property management costs you money every single month. Whether through longer vacancies, higher turnover, or preventable maintenance issues, subpar management quietly erodes your returns. 

Here are five clear signs your current property management isn't delivering the service your investment deserves:

Though some real estate investors would balk at the typical commission received by a property management team – usually around 8 percent – sharp investors recognize the real value in a great property management structure.

"What you focus on, you improve."

Over the last few months, REI Nation and Premier Property Management have worked diligently to increase the home inspection scores of the properties under our management. Our scale begins at 1, indicating that the home needs major improvements before it should be available for residency. The numbers on our scale range to 5 with an additional score of Perfect for houses in which the Inspector deems have no discernible issues. Our goal is to have every property reach a Perfect score.

I was doing some research this week on improving tenant relationships with their property management companies and I came across this info-graphic.  Part of the research was on how to respond quicker and provide better service to tenants who have issues with their rental properties.  For a company like Premier Property Management where 100% of the properties we manage are owned for real estate investing purposes, quick reaction and tenant satisfaction will go a long way in helping an owner have a consistent and reliable income stream.  

With the first half of 2013 completed, Premier Property Management has grown into one of the largest rental property management companies in Memphis.  With more and more property management franchise companies popping up across the country, we thought it would be a good idea to begin documenting certain performance numbers.  We did this in hopes of setting a trend that other companies would follow.  It would make it much easier for investors to make management company decisions.  We'll see if that ever takes place!

When you're ready to start purchasing rental properties, you have a big decision to make: Do you hire a professional property management company or take care of it yourself? Each option has its pros and cons, and there is no clear universal answer. Which direction you should go is dependent on your financial situation, your experience, and to what extent you're wanting to be involved with your investments. It is also dependent in large part if you decide to be an Out-of-Area Investor.  Many real estate investors choose to buy properties in other parts of the country because of better returns, less expensive pricing and more stable rental environments.