New investors are usually concerned with keeping costs down. They want to see their profit margins go up and really...who can blame them? They got into real estate investment with hopes of making some money on the side, and the best strategy seems like it’s to spring for cheaper properties and keep costs low. Maybe they even decide they can landlord it themselves.
After all, do they even really need a property manager? What’s so hard about it?
And then, a few months in, they realize they’re losing their mind trying to do it all, nothing’s going like they wanted it to, and they aren’t even seeing the profits they want (or need), and it sure as heck isn’t passive income. What happened?
For starters, there’s an old adage that seems to always hold true for real estate, even if investors don’t always see it at first.
You have to spend money to make money.
It’s not called investing for no reason. You have to put something in before you can really get something out of it.
Ah, but wait; our new investor was putting something in, wasn’t he? A lot of time, sweat, and tears trying to landlord his property, and he wasn’t getting any return on his investment! What gives?
Here’s the thing: landlording and property management aren’t for everyone. They’re separate job descriptions that owning a property doesn’t qualify you for. Can you learn? Absolutely! But they’re not jobs that everyone needs or wants to do. It’s hard work that for you, as an owner and investor trying to build up your passive income portfolio, can distract you from the big picture.
Dear Real Estate Investors: Stop losing your mind trying to do it all!
You may think you’re saving money by not hiring a property management team. But trust us. A good team is worth the investment and more!
5 Key Benefits to Hiring Property Management
Whether a single manager or a team, the right property management can bring vast benefits to your real estate investment business:
1. You’re Get Out of the Weeds
When you manage a property yourself, the details of management take up a lot of your time day-to-day. So much time that isn’t hard to think about the big picture of your investments. Things like research, buying new properties, strategy, and being an investor instead of a landlord take a backseat to all the things you have to do just to keep up. You end up not really going anywhere at all!
Instead of getting lost in the details, trustworthy property management means you don’t have to worry about the nitty-gritty anymore. You can step back and be the master strategist you were always meant to be.
2. Distance Is a Non-Issue
When you landlord yourself, distance is an issue. You might’ve been picking properties only in your neighborhood or in very close proximity, or limiting your number of properties, period. One person has limits, after all. When you have a property management team or company, opportunities open up in new places: you can not only expand in your area, but beyond it! Into new cities, new states, and new regions. Entirely new markets open up to you when you’re willing to hire managers.
3. Your Time Isn’t Wasted
Not only can you focus on the big picture when you have a management team, but the time you do spend is going to but on things that will ultimately impact your business. It’s not going to be on things that are just, frankly, wasting your time. The work your managers do is important, but it’s not what you as an owner should be doing. Your time is better served elsewhere!
4. No More Late-Night Calls
Doubling as the landlord means tenants can call you in the case of maintenance emergency. That means that it’s a very real possibly you may get called at three in the morning to fix an overflowing toilet or some other maintenance horror. When you’re not the manager, that’s not your problem. You don’t even have to hear about it, because it’s taken care of for you.
5. Excellence in Customer Service
More than anything and most importantly, a quality property management team gives you the advantage of excellent customer service. Quality customer service in real estate investment is invaluable. Period. This is a business where that is such an asset to our customers (tenants) and when you can provide it, they’ll remember and keep coming back. That quality service is the type of thing that keeps your properties in high demand, renews leases, decreases turnover, attracts and retains quality tenants, and generally increases the quality and profitability of your business. It’s the kind of thing that builds your reputation and keeps it at the top.
Even if you can’t see the value in excellent property management right now, trust us: we’ve been through it all and we know it’s worth it. That’s why we offer nothing but the best to our clients through Premier Property Management.
Start getting the results you want out of real estate investment today.