If you bought your first property and are thinking about self managing it, hire a PM company to get it leased!
My first property I attempted this myself. The result, a terrible tenant. The tenant pays on time but is extremely high maintenance and all over the place. I ended up hiring a PM to handle it.
My second property (duplex house hack) I tried to lease it again myself. Despite being in a highly desirable area I only received a few emails and had 1 showing in 5 weeks. I ended up giving myself a due date that if I did not get it leased I would hire it out. I was struggling with all of the legal paperwork, systems, etc. After missing my due date I had my PM from the first property find a tenant.
The result: in 10 days they had well over 25 emails of interest, several showings, and got it leased to a high income earner that works at the local hospital. All of the legal paper work was completed and the tenant is set up on auto-pay. I haven't heard a peep since. Cost = $500.
Don't do everything yourself. Hire the professionals.
When I was trying to do this myself I lost sight of the other rentals I own, my strategy going forward (working on my business). It's okay to do some things yourself if you want, but majority of the tasks should be hired out!
Note: I only self manage the duplex because I live in the lower unit. My other rentals are all handled by a PM and it's well worth the cost.
Sage advice, William. Many years ago, I had a 2+2, first few years I did a house hack, then rented out the entire unit. First and second tenants I ended up suing in small claims court (how does a tenant make a hole in the ceiling? Stomping around in the attic and foot through the ceiling!). I hired a PM company for my third tenants. They found a young couple with a little girl... and for the next 4 years, not a peep!!! It was glorious! I do want to learn the correct process myself, but this time it will be on a case by case basis. This time around, I will do the RE rental properties right! :) The PM cost was $600.00 and I would have paid double! Thanks for sharing, William! ~Daniel
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing