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How To Make Sure You Get Great Property Management For Your Income Properties
Imagine a peaceful night sleep because you are not thinking about your properties on a regular basis before you go to bed.
Notice the title of this article says how do you get great property management, and not how do you get a great property manager.
There is a difference.
As your portfolio continues to grow it is important to have a plan to ensure your real estate investments become true passive income, said broker Rhys Wyn Trenhaile of The Vanguard Team at Manor Realty Ltd.
A professional property manager is a very important long-term part of your team. Without one it can be very difficult to continue focus on building your passive assets which generate wealth.
“As soon as you’re working on your property and cutting your own grass that’s active income taking away from the whole point of income property ownership.”
So how do you guarantee you have found a great property manager?
Trenhaile says that property managers are much better at managing larger properties than they are smaller properties for a couple reasons.
First off, they make more profit per hour on the larger properties.
“All of the tenants are in the same building so when you fix one problem, you’re fixing it for all the tenants rather than one or two in a duplex. In other words, the problem is spread out over many profit sources for the property manager.”
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Secondly is the cold hard truth of capitalism.
“The property manager is simply making more money and making more of a living on the larger properties,” said Trenhaile. “When they wake up in the morning the first properties they think about are the biggest properties they make the most money from.
There are a few different ways you can overcome this.
You can hire a family member.
According to Trenhaile, one of his real estate team members has his wife acting as their property manager, and another is teaching his young son to manage his portfolio and assets.
A second option is to find a property manager who is so well organized that they can handle the small and large properties without much difference in the quality of property management.
“I personally have one of those property managers and you’re more than welcome to have them as well if you’re one of our clients.”
Additionally, since you are building your portfolio, you can also be your own property manager. At least for the first two or three years.
This is not actually a bad strategy as you will learn a ton about your business so when you outsource the property management you already know the ropes, what to ask for, and what signs to look for if you’re getting bad property management service says Trenhaile.
Some people might argue you cannot find a property manager who will ever do a better job than you do on your own property.
“Although this might be true in many cases, there are lots of property managers out there. If you properly screen and work with them, you will find one who will provide a level of service close to what you would do and is truly cost-effective so you can stop cutting your own grass.”
Speak to a member of The Vanguard Team at Manor Realty Ltd. for more information on how they structure their power team for real estate income property portfolios.
How to Find a Great Property Manager, Featuring Rhys Wyn Trenhaile
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