Trimming Operating Expenses
When you buy your first rental, you will undoubtedly try to find every way to cut expenses, and you should explore options. One place to give second thought to ignoring is the value of a property manager. Property managers find qualified tenants, secure the lease, collect rent, manage maintenance and legal and many more things. Typically, their fee is a fraction of the rent, which is usually 10%.
Think Twice
You may be asking yourself why you would pay someone to manage your investment when you can do better yourself. As a busy professional, you likely have better and higher yielding use for your time. Let others manage the asset to success. Take it from someone who self managed his rentals for 2 years. It was great and simple, until it wasn’t. When tenants needed me, I was at work managing a team. I then had to coordinate fixes, appointments and contractors. For those few hours a month, those moments were stressful.
My Experience with a PM
I did not appreciate the value of a PM until I secured one in 2020. Setting expectations for how I wanted my residents to be treated, my PM became an extension of me and an instrumental team member in my investments. Would I recommend a PM to a new real estate investor? Absolutely. Just remember that quality is everything.
💡Invest Your Retirement w/ eQRP
– How To Use Your 401k To Invest In Real Estate
