Auotmating your rental portfolio

[Neil Goradia]

Hello all, I was hoping you could help me with automating my rentals. I've searched the forums but haven't quite found what I'm looking for.

I started investing in 2007 and with a partner have accumulated about 25 rentals. We both work as engineers full time, but since we have a few handymen that we've developed a great relationship with, we've been able to manage everything pretty well. I handle techincal issues with the handymen and rehabs and my partner deals with tenants and collection.

We've just hit a milestone where all our investors and properties are paid off, which gives us the rare opportunity to quit our jobs and live off the rental income. While exciting, I found it difficult to think about our future consisting of just managing rentals all day. Since then we've come up with a few great business ideas and we'd like to pursue them with the same vigor that we bought and rehabbed homes.

My question is, what types of things can you automate in a single family home rental portfolio? Rent collection online seems like a decent idea (read the article on BP) but am not sure if that would train my employees (tenants) in the way I would want. Another one I thought of is getting a property manager, but with the number of rentals I have, you would think I would be able to hire our own "property manager" and get them to coordinate with our handymen and collect rent. I just don't see someone wanting to do this type of work for only $20/hr, do you? Even if we did find someone it seems like they'd just learn the ropes and then go off on their own to invest in real estate. Has anyone successfully "handed off" their real estate business and been able to pursue other aspirations? If so, could you share some of your strategies? Thansk a lot!

Neil

[James H.]

Originally posted by Neil G.:

I just don't see someone wanting to do this type of work for only $20/hr, do you? Even if we did find someone it seems like they'd just learn the ropes and then go off on their own to invest in real estate.
Neil

I think $20/hour, if you are going to garauntee 40 hours a week, to manage 25 properties would be a pretty sweet gig that plenty of capable people would jump at. You'll have to replace people periodically. If you have to replace them because you've made them too successful, it's gonna take sevaral years, and you should be proud in any case. More likely you would have turnover for other reasons.