6 Signs You Need Help Managing Your Investment Property
Many real estate investors begin by buying and managing properties on their own, or by hiring someone who lives on site (as in a multi-unit) to help. But, at some point, this may prove inadequate; you may realize that you don’t enjoy it, or you don’t have the time for it, or that the property is suffering more than you’d like. Deciding to hire a property management company is a big-step—especially for real estate investors who are early in their careers. But, it’s also an indication that you are growing as an investor. Perhaps you no longer have the time because you have more properties to manage—or perhaps you just recognize that delegating your management tasks makes you more successful. Let’s look at six signs that it may be time to hire some help:
- You are losing track of which property needs what. If you’ve acquired several rental units and you now have a written list 20 items long—for the week—it’s likely that you won’t get to all of it and that you’ll probably forget something.
- You are spending more time in the car than accomplishing tasks. If you have to drive a lot to get to your rental unit(s), you are losing precious time that you could be using to fix that drain, or check in on the new tenants, or mow that lawn. Let someone else do the driving and the tasks, so you can focus on the bigger picture.
- You find yourself annoyed with tenants—frequently. Sure, we all experience tensions with tenants occasionally, but if you find that you have little tolerance for most of your tenants, you are likely not benefitting your tenants OR your property. Find someone who has more patience.
- What free time? Real estate investment is not about gobbling up your free time. Ideally, it should give you more. Delegating management tasks may be the best way to do that.
- You can afford it. Yes, hiring a good property management company means making an investment, but one that should bring you greater returns in the long run. If you are in a position to pay for property management, because your investments are that healthy, then it’s worth considering. Think of what you can do with the extra time and energy; think of how much more you could grow your investment portfolio.
- You want a partner, not an employee. Maybe hiring someone to manage your unit was ideal in the beginning—it was affordable and it gave you an extra set of eyes. But, it also meant that you had to manage a person, too. A lot of people don’t want to be a boss. Overseeing people can be stressful and in some ways, doubles your management responsibilities. Property management companies, on the other hand, should be experts who oversee their own employees. They are your partner in your investment and ideally, reduce your stress.
Keep these in mind as you grow your real estate investments or as your situation changes. They will help you become more self-aware so that you can make decisions that will help you maintain your edge.