One of the biggest challenges when using a buy and hold real estate investment strategy is finding a good property manager or property management company that will take care of your investment. In fact, your entire perspective and attitude to owning a property can be shaped by the experiences you have with managing a property.
In general, there are two options for taking care of your properties: manage your property yourself or have someone else manage it. There are some people who manage their own properties and enjoy and find the experience positive. However, for others, the hassle of finding tenants, conducting inspections, chasing rent, etc., is simply more effort than it’s worth and the money you pay the management company to take care of your property is money well spent.
But what about the situation where you’ve appointed a manager to take care of your real estate investment, but that manager isn’t doing the job right? Some examples of problems that are common with property managers are: Lack of communication Not being on top of rent Not being on top of inspections Not following up on maintenance issues
There are some strategies you can implement to help you deal with these issues: Set your expectations with your rental management company in advance regarding communications, rent, inspections, renovations, and maintenance. Have a process where you record your own rental income, inspection dates, lease renewal dates, and set up email reminders for yourself and your property manager regarding inspections and renewal dates. Don’t let issues slip by without addressing them with your manager, communicate regularly, be brutally honest, and put requests in writing.
The main lesson here is that you should think of your real estate investments as a business and your property manager as an employee. Sometimes you will need to manage that employee, and sometimes you may even need to replace that employee. Good property managers find great tenants, report back to you regularly, conduct business efficiently, and make sure you make the most profit possible. Of course, if you find a good property manager, let him know you appreciate his work and stay with him! They are worth their weight in gold!