BiggerPockets Repost: Owning Rental Property Without Managing Tenants: Why I Use Property Managers

2012-08-02

BiggerPockets Repost: Owning Rental Property Without Managing Tenants: Why I Use Property Managers

If you’re not subscribed to BiggerPockets, you should be!  It’s a great real estate investor site.  They were nice enough to let us post an excerpt of this recent article by ARTHUR GARCIA, but you have to go to their site to read the entire article.

As the title states, this is another example of what all successful real estate investors recommend – delegating low ROI tasks so you can focus on tasks that generate high ROI!  Read on and enjoy…

 

 

A few weeks ago, David, a co-worker of mine, got on the topic of investing in rental properties.  After what seemed like 20 minutes, I found out the following about David:

  • He owned a 4-plex ten years ago
  • He lost a lot of money
  • He hated dealing with tenants
  • He will never buy an investment property again

What I deciphered from his story was that he took on too much.  He handled every aspect of his rental business (tenant management, repairs, rent collection, marketing vacancies) all while trying to perform well at his day job.  Eventually, a few evictions, property repairs, and a couple of seasons of prolonged vacancy was enough to send David packing.  The situation was so bad that he sold his property at a $40K loss – ouch!

What is sad about David’s story is that it is not all that uncommon.  Hearing David’s story made me realize that I too was on that path.  It is in my nature to over-commit and to try and take on everything in my path.  In my last article, I discussed how this is still very much a trait I have to work at managing.

In today’s post, I wanted to highlight a few ways I have been able to minimize the day-to-day aspects of my rental portfolio by utilizing local property management.

Read more…

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