When I first began investing in real estate, I was counseled over and over again from other investors about managing my own property. The benefits of saving the fees and earning the tax write-offs as well as being firmly in control of who was occupying my property. It all sounded so great and their words seemed to be filled with years of wisdom. But I have never been one to look or wisdom from those who are determined to trade one wasted minute for another. I wanted the wisdom of business minds and those who built wealth and didn’t trade their most precious commodity: Time, for a few dollars. So if you find yourself wondering if you should hire a property management company to manage your growing portfolio, I can give you a resounding YES!
Deciding to build wealth through owning real estate seems to be an easy decision for many. Others struggle with the idea of owning property for long periods of time and sometimes fixate on the negative stories they have heard and the endless what-if scenarios. I can promise you, those scenarios will always be there and you may experience some of them over time.
However, the benefits of owning real estate and using it as a vehicle to build wealth, far out weigh the negatives of what may happen.
Once you have decided that building a portfolio is your wealth building choice, then do not spend too much time fretting over whether or not to manage the properties yourself. If there is a decision to make, meaning you are purchasing investment property near you, I will give you one thought to ponder. Are you interested in building wealth or developing a second job? Time is your most precious asset and it can be used to improve every aspect of your life or it can be used managing your properties. I prefer to leave the latter to the experts and spend my time earning for my family and playing with my family.
For just a moment I would like you to consider the benefits of using a professional property management company. Many property management companies have spent their development and management hours building systems and processes specifically designed to create an efficient flow. From occupancy to management to legal issues, the company will have the processes in place to handle your properties. Those efficiencies are what lead to increased revenue for an investor, less strain on the investors time, a reduction in costs incurred by the investor just to name a few.
Revenue can actually be increased even after management fees by reducing the number of days a property sits on the market waiting to be occupied. A quality management company will already have applicants ready to rent properties and process to begin marketing a property immediately. By increasing the number of days a property stays rented, the company is increasing the revenue for the investor.
By being able to give up the stress of having to do everything from marketing a property, fielding calls form interested tenants, showing the property to tenants and even taking care of maintenance while the property is both occupied and vacant, an owner can win their time back. With more time to do what you do best whether its spend time earning for your family or spending quality time playing, an investor reduces the stress and worry when they hire a management company.
Finally, costs can be greatly reduced by using a management company. Simply in terms of having policies in place and a procedure for tenants to report issues or make requests, a management company can quickly answer and decipher which calls are important and necessary and which are issues to be handled by the tenant. As property owners doing our own management, the tendency has always been to keep the tenant happy for of having to repeat the rental process and we often spend money on unnecessary expenses.
There are many landlords who will advise to keep overhead small in order to keep it all. In other words, spend as little of your hard-earned rent as possible and do as much work as possible. In my book, building a portfolio of investment properties is a logical way to build wealth and provide for my future. In my present, I am providing for my family by working diligently and smart. If you are considering managing your own portfolio, I would simply ask you to consider the value of your time. And use your time where it will give you the best return. And if it is not in managing your properties, then let that go and hire the best property management company you can find. The gains you make will be huge!