I have a confession to make... you see; when I first started out in real estate investing I didn't do everything on my own. I had a little secret that most people do not understand. In fact, most people make this mistake over and over again and never even realize how much this same mistake is costing them.
Let me explain, most beginner and intermediate real estate investors do all the work themselves. This includes finding tenants, credit checks, signing leases, maintenance, tenant relationship, rent collection, evictions, accounting, routine inspections and all of the other 100's of things a property owner must do to keep their real estate investments profitable. Seems like a lot doesn't it? That's because it is!
If you are an experience real estate investor you quickly learn that the tenant stuff is a lot of work and not very profitable. The real money in this business is finding new profitable deals and arranging good financing - not collecting rent and doing maintenance.
So the secret that most new real estate investors do not know is hiring a professional property manager and letting them handle the 100's of tenant issues will free your time to focus on new deals and financing. By hiring a professional property manager to oversee your properties you can rest assure that all of the tenant activities will be attended to and your property and tenant will be managed in a way that protects your property and keeps it value as high as possible. I was able to learn this early on it saved me from making many costly mistakes.
By hiring a professional property manager I was able to see how they marketed for new tenants, how they collected rent and occasional went to court, how they did the accounting and financial record keeping, and how they managed difficult tenants. All of these issues I could have learned by making own mistakes several times and then learned how to do it right by "trial and error". But this is costly way to learn. It is far better for the new real estate investor to hire a professional property manager and learn from how they handle these issues.
You may want to eventually manage your own properties but in the early years you should hire a property manager and learn how they do things first. Then after you have seen how it is done you can self-manage with a sense experience.
I will also say that tenants are very good at sensing when someone is inexperienced at property management and I assure you they will take advantage of that inexperience to your determent. Tenant will test you to see if you will give them some breaks or if you do not know the local landlord laws. This is also why a professional property manager can help you establish some experience and the ability to stand up to tough tenants.
Stop wasting your efforts and let a professional property manager oversee your property investments and focus your time on finding new properties and your real estate investment business.
Mike Lautensack is the Owner / President of Del Val Realty & Property Management ("Del Val"). Del Val is one of the leading FULL SERVICE residential property management companies serving Philadelphia and western suburbs. Del Val advises property owners how to build wealth and financial security through hassle-free ownership of rental real estate with our NO “Hassle” FULL Service Management Program. This proven management system allows owners to enjoy the financial benefits of cash flow, tax savings, and wealth creation. All this while it GUARANTEES you will never have to deal with maintenance or tenant issues.
If you would like more information about our property management services or would like to schedule a 15 minute one-on-one tele-consultation please click here.