Managing your own properties, what a frickin nightmare! Overflowing toilets with sewage, radiators, heaters, air conditioning breaking down, tenants calling you at 1:00 am with problems.
Yeah, that sounds like a lot of fun doesn’t it?
But that is the life of a property entrepreneur, get used to it! It doesn’t happen all the time but occasionally, things do go wrong and that puts off a lot of people from investing or managing their own property but I’m here to tell you, you should manage your own properties as much as possible…Why?
Because it’s going to allow you to get the experience to know the in’s and out’s of running a property and when you hire other people to manage your properties for you, unless you have that knowledge, it’s going to be hard for you to find someone who can do it well.
Develop your own system
When I started out in property investing, I was very niche, I was looking at certain types of property and certain types of tenants and I became an expert in that market. When I hired my property manager, I was able to tell them what I was doing, what worked, how to advertise, where to advertise, what kind of people we were looking for, how do we the checks. I built up that domain knowledge in my own system and then I was able to outsource it to somebody else.
If you don’t do it yourself, you’re giving away a lot and my modus operandi as an entrepreneur, whether I’m investing or running businesses, is that I want to know what’s going on, I want to make sure someone can’t B-S me. If I’m knowledgeable I can avoid pitfalls, I can go like “oh you know the plumber is going to charge $500 to fix this.” Well, if I know that it’s only a $30 job then they’re just overcharging me because I lack experience or knowledge.
Grow your D.I.Y. knowledge
It’s that knowledge that’s going to allow you to make more money on your investments by understanding and doing yourself. Even if you’ve got a job, even if you’re crazy busy, learn to manage your properties because success in investing long term is about management. Sure, you can buy a property tomorrow and you can sell it the day after if the price has gone up but that rarely happens.
We’re looking at selling properties over a longer period of time, it could easily be years, and the only way you’re going to sell a property for a higher value is if you’ve maintained it well and it’s running well and it’s a good business in and of itself.
As a property investor, management is a critical skill and that’s why I recommend people manage their own properties to start with and once you’ve got 1, 2, 3 properties in your portfolio then usually the cash flow will be enough for you to pay for your own property manager anyway, you can either employ a full time person or you can outsource, but by then you’re feeling confident and you know what you’re looking for.
So, manage your own properties, I recommend that right from the start.