SHOULD I USE PROPERTY MANAGERS?
Why do you use property managers? You are a full time investor now. I Am hoping this post helps you decided if you should get a property manager whether you are a Full time investor or currently working your job. The reason I have a property manager because I don’t necessary love Land Lording. However it’s a means to an END. Being a land lord looks so easy but yet its so difficult. So for people like me Property managers play a very important role in getting to my end goal.
The first reason I don’t like to manage my properties is because of time. I recently tried to do room rentals on a lower income home. It was a horrible experience running back & fourth , getting stood up, dealing with tire kickers and hearing all the sob stories. 1 guy ask me to pick him up, show him the room, take him back and then have the nerve to ask me “Can I get internet in my name while he stays their?”. After that Guy I QUIT. I knew I was not cut out for that type of work. And Property managers here in my city will not take room rentals. I turned it over to a Property manager to manage it as Single Family rental. Being a Land Lord is a business not to be taken lightly if you want to succeed at it. Ive seen people become successful at managing their properties as a part time investor and full time investor. However I can say they all have systems in place. I know some of you are thinking well if you would have confirmed your appointments you would not get stood up. Let me tell you that a confirmation of an appointment means nothing to a flaky person.
The 2nd reason I looked at where the bulk of my income is coming from . In my operation the bulk of my Income is coming from wholesaling and rehabbing. I figured I concentrate on growing that. Take the proceeds, buy rentals creatively or cash. And hand it over to a Property manager to manage. So property managers are more like my teammates. I am the Michael Jordan of my organization so I must get us to the Championship meanwhile the property manager is my Scottie Pippen. Folks we all have 24 hours in a day we must delegate them wisely to grow. If I am putting time into my rentals which at this time does not produce much it will take me away from the bulk of my income.
The 3rd reason I am a non confrontational person. I don’t like to deal with drama ,issues and sob story’s that tenants love to tell. I had a tenant tell me 1 time she will not pay my rent because a Stripper her husband was cheating on her with was moving next door. I advised her I have nothing to do with the house next door. In the rental business you do have good people who falls on hard times. So its ok to be human and work out payment plans if they are a good standing tenant. Ive had done this before and it worked out for me. And of course there always the times the tenant screwed me over. Now The property managers gets the sob story and handles it. Which is a lot better for me and helps me keep my sanity.
In conclusion the 8% I pay to property manager is well worth it. That 8% allows me to keep Focus and grow my primary business of rehabbing & wholesaling. Standard for property managers is usually 10% from gross rent however always remember you can talk them down. Around here in Charlotte,NC 8% is pretty normal for property managers working with Investors. You must know your self and know your strong points. And know where the bulk of your time should be spent to grow as an investor. Everybody opinion on this topic will be different to fit his or her needs.