The most talked about goal in real estate and how it can make you wealthy is passive income – normally this means buying a home renting it, then collecting rents to gain your profit. I have seen many investors over the years that have many properties and they insist on self-managing them bemoaning management companies as all being crooks and not adding any value. This certainly true for some property management firms out there – but there are a bad apples in more businesses that you can shake a stick at! There are many very skilled and proficient management companies out there and one of the main benefits they provide which is often over looked is the screening on the tenants so you don’t have to and dealing with evictions if that ever became necessary. Finding a good property manager can take some time but once found they are worth their weight in gold so ask around your network for someone that you know uses and have used for a long time with great success, trust me it is worth the effort. Having a bad tenant is one of the worst things that can befall a buy and hold investor – you could end up with a grow op in your home which you would be on the hook for remediation with the city so not getting the rent cheque could be the least of your worries! A great property manager lets you really focus on growing your portfolio and doing your due diligence on new properties so you don’t have to worry about slow sinks, broken washers, plugged toilets, and doing tenant interviews! How much time do you spend on these tasks each month today? Let’s say you self managers out there spend 20 hours per month dealing with these sorts of issues, that is as much as a part time employee works in a week so you are losing a half a week each month – how much is that time worth to you? How often do you want to be doing high-leverage activities day to day? I say find a system that gets you to the place that you are ONLY doing high leverage tasks each day.
To your success!
Tim R