Good for you!
You’re building your portfolio of investment properties…
Is it time to look at hiring property managers?
Before you make that very important decision, there are pros and cons you need to know.
I want to cut your homework time. Here are a few tips that should help you be prepared when it comes time… if it is time… to hire a property manager or managers (plural).[separator style_type=”none” top_margin=”20″ bottom_margin=”20″ sep_color=”” icon=”” width=”” class=”” id=””]
First, you have to ask yourself if it’s smart to hire a property manager.
Is It Smart to Hire a Property Management Company?
As the piece points out, there is no “one right answer” for all property owners. Knowing your Investor Identity will help you figure out whether you need to hire management for your properties and, if so, why you feel the need.
If your goal is to retire early with a solid portfolio of passive income from your rental properties, you’re going to want to hire a manager or set of managers.
What Should You Look For When Hiring a Property Management Company?
Now let me take you into the specifics of what you might look for in the “perfect” property manager. Rather… the RIGHT property manager for your Investor Identity. (Everything always goes back to your identity.)
The property manager’s or property management company’s services need to fit your type of property so they can serve the tenants correctly.[separator style_type=”none” top_margin=”20″ bottom_margin=”20″ sep_color=”” icon=”” width=”” class=”” id=””]
I talk about this a lot when teaching investors about the importance of knowing first one’s own Investor Identity and then finding others with whom you will work that have that same identity. When these don’t match, you are guaranteed problems.
No one needs more problems… right?
Should You Hire a Property Manager At All?
To hire a property manager or not to hire a property manager… that is the question. And that’s what we dive a little deeper into now.
For me, I’d be sunk without my property managers, because I have properties in different states. But that’s not the path for everyone.
Managing properties requires a lot of time, and a property management company will save you that time, which you can put into other things. For example, evaluating other properties in which you might want to invest!
However, that’s not the only benefit.
Why Bother Hiring a Property Manager Anyway?
Hiring good property managers is something that can affect your income. So you must choose the right people or companies for the job.
You should ALWAYS be interviewing property management candidates. It’s an ongoing process. That way, you won’t have a single point of failure and you won’t have to deal with big problems later.
It’s also important that you check in on the property managers you hire from time to time to make sure things are going as planned… as they presented things would go prior to your hiring them.
If you just have a couple of local properties you likely aren’t at the point of hiring property management, but as your portfolio grows, you will want to understand the process and know how to hire the right managers or management companies. This is especially true when you own apartment buildings and larger properties.
If you’ve ever thought about investing in multifamily properties, check this out: