Landlords with 10+ Properties
Real Estate Investor · Mobile, AL · Member since 2010 · 46 posts · 2 votes
Landlords with 10+ Properties
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Investor · Rancho Cucamonga, CA · Member since 2008 · 1k+ posts · 684 votes
14yScaling management is a lot easier then many people think. Up until recently my partner and I managed 65ish SFHs with maybe 10-15 hrs a week between both of us. I'd probably spent another 5 hrs a week leasing up the new acquisitions.
We decided to hire someone full-time after we broke 60 units, so we can can concentrate on acquisitions and flips. He probably does management 75% of time and other tasks for us with the rest of his time.
The factors that I think save a landlord time and money are:
- Tenant selection and related to that the type of product you buy is key. If you pick the wrong tenant, get rid of them as soon as possible.
- Provide a product in average or better condition and fix legitimate repairs quickly. You don't want to give tenants any excuses not to do their job (pay rent).
- Train the tenant from day 1. We give them a "Welcome Letter" that has very specific requirements on how to pay rent, how to report maintenance, etc.
- Get emails and an online management system: Buildium and Appfolio are both great.
- Your length of occupancy and turn time/cost is what is going to make or break your business. Do what you can to keep the good tenants and fill your vacancies as fast as possible.
28 Replies
- 14yMark UpdegraffBusiness MemberReal Estate Broker · Rochester, NY · Member since 2010 · 1k+ posts · 691 votes
I'm self managing 24 units. 7 are 186 miles away, 1 is 140 miles away, and the other 16 are less than 1 mile from my primary. I had a contractor last year to help place new units in service, and we got 9 done as well as take care of maintenance issues on existing units! I do all the office work, pay bills, and find deals after a 60 hour work week. For me it is a means to free myself (eventually) and be able to pursue other business ventures.
I agree that GOOD trustworthy help is essential. I've been a one man show this year and have not had the time to pursue the high returns i hit last year due to the work load. I actually worked myself to exhaustion last week and had to take a sick day to rest. When you find the right people, you'll know it. Don't settle for less, keep moving on if they don't work well. A crappy 8$ an hour guy is more detrimental to your business than a motivated 15$ hour guy. If you can align you help's motivation with you goals it is win win. Managing property can be challenging, make sure you have people in the rolledex to call if/when you're in a pinch... Otherwise, it's your own name that will take a hit.
At 10 units, self management is doable. At this point for me, i'm interviewing for a full time position.
Updegraff Group Realty4.746 Reviews - Real Estate Broker · Indianapolis, IN · Member since 2009 · 575 posts · 496 votes14y
I have 12 sfr 2 duplexes and a commercial building.. and I use a property management company for rent collections, maintenance, and rehabs. I own a leasing company that handles tenant placement for the management company that I use.. I see and approve all rental applications, and maintenance calls so I am very involved, but I couldn't function with out a great property management company to help me out. My office is actually in the same building as my property management company and my employees constantly interact with their employees. I guess my point is that you CAN tap into a larger system AND be very closely involved.
- Investor · Westminster, CO · Member since 2009 · 1k+ posts · 1k+ votes14y
Paul Morgan, if you can make the repairs yourself, that is great. I am sure most of us have done some work on real estate at one time or another. You name it, I have probably done it, from replacing a light bulb to replacing a roof. There is nothing wrong with a DIY Real Estate Investor.
As for me, I am not a Real Estate Investor so I could become a Handyman. I just had all the light switches and electrical outlets in my personal residence changed and modernized. The Electrical Contractor charged me $40 an hour for his work plus parts. Could I have done it myself? Of course. Did I want to? Heck no! LOL Besides, it probably would have cost me half a dozen trips to the Chiropractor for my back.
The point is, trying to save money by doing repairs yourself is great, IF that is what you want to do. But there will come a point in time, whether it is 10, 20 or maybe 1,000 rentals when the investor realizes that unclogging a toilet is just not the best use of his/her time. Besides, what fun is it to be a successful Real Estate Investor if you are the one who has to babysit them?
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