Hire a Property Manager
Most investors manage their own properties. And if you ask them why they manage their won properties you will usually get an answer that sounds close to this: “Why do I want to pay someone else to manage my rental houses when I can save myself $100 per property by doing it myself?” Well, let me tell you why: You will never get burned out by OWNING 100 rental properties. You will however, probably burn out on trying to MANAGE 100 rental properties.
Unless you enjoy 11pm, 1am, 3:30am, 5pm and 9pm calls from tenants, do not manage your rental properties. I enjoy OWNING properties and have no time to actually MANAGE my properties. Remember, I have a full time job. So do your sanity a favor and acknowledge that you don’t need to suck every last cent out of your investment properties. Your sanity is worth more to you than a few hundred or even thousand dollars a month. Burnt out landlords are the BEST targets for property acquisition. They’ve had it with all the managing of crazy tenants, fixing toilets, chasing down rental payments, evictions and so on. They are almost desperate to sell their property to you. I love buying from these sellers!
Your better choice is to hire a qualified property manager. Most will charge you an upfront commission to rent the property and then 10% per month to collect the rent. Most will also handle any and all maintenance requests and bill the service to you at the end of the month. This is a great way to be a “hands off” owner which allows you the time to focus on your full time career and also allows you to focus on the real goal of most investors which is to acquire solid, cashflowing rental properties. When selecting a property manager, find out exactly what they charge for renting and managing the property. Make sure you understand what means they use to identify good, paying tenants and what their policy is for evictions. Meet the leasing agent that will be assigned to your property. Send her flowers if she’s a girl. Send him baseball tickets if he’s a guy. Make them your best friend! Send the owner of the company a letter acknowledging your leasing agent’s hard work. You need these people to look out for your investment. A little praise and acknowledgment will go a long way in securing good tenant placement for your investment property.
Negotiating Tip 114: Retreat Negotiations
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Negotiating Tip 113: Activating Our Opponent
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Negotiating Tip 112: Misconceptions
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