People dislike rentals because they don't enjoy managing them!
Jorge VazquezBusiness Member
Real Estate Broker · Tampa, FL · Member since 2017 · 1k+ posts · 685 votes
Graystone Investment Group4.6271 Reviews
People dislike rentals because they don't enjoy managing them!
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votesExcept you need a good PM and they are out there, but there are also a lot who aren't. It is also hard to find a place that will cash flow with PM fees, especially if they charge 1 month's rent to lease it (instead of a flat fee) and have high turnover. No one is going to care more about your property than you are. Many people are better off not buying rentals and investing their money elsewhere. Rentals are not a get rich quick scheme.
11 Replies
- 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Except you need a good PM and they are out there, but there are also a lot who aren't. It is also hard to find a place that will cash flow with PM fees, especially if they charge 1 month's rent to lease it (instead of a flat fee) and have high turnover. No one is going to care more about your property than you are. Many people are better off not buying rentals and investing their money elsewhere. Rentals are not a get rich quick scheme.
- 3yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
@Jorge Vazquez we've been saying for years that property management is the biggest waste of an investor's time!
Logical Property Management4.9453 Reviews - Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
"No one is going to care more about your property than you are."
"Property management is the biggest waste of an investor's time!"
So true! Except when it's not.
In my experience, most people are not cut out to be Landlords. They suck at it, just like so many people suck at being property managers. You may care about your investments, but you may not know how to care for it and your mistakes can cost you dearly. Most of my clients make more money after paying my "exhorbitant" fees because I do a better job of caringn for their investment.
The good news? I'm writing a book that will help amateur Landlords be better Landlords, protecting their property, income, time, and sanity! This will not be a fluff book. I won't include links to a website where I upsell a forms package or coaching. This will be a big, hairy user manual with everything you need to be successful, including tons of sample forms.
If someone discovers they don't like to be a Landlord, they suck at being a Landlord, or they don't have time to be a Landlord, I will include a detailed guide for finding a professional property manager to take over.
Tell all your friends! I hope to be in a bookstore near you in the first quarter of 2024!
The DIY Landlord Book4.7248 Reviews - 3yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Quote from @Nathan Gesner:
"No one is going to care more about your property than you are."
"Property management is the biggest waste of an investor's time!"
So true! Except when it's not.
In my experience, most people are not cut out to be Landlords. They suck at it, just like so many people suck at being property managers. You may care about your investments, but you may not know how to care for it and your mistakes can cost you dearly. Most of my clients make more money after paying my "exhorbitant" fees because I do a better job of caringn for their investment.
The good news? I'm writing a book that will help amateur Landlords be better Landlords, protecting their property, income, time, and sanity! This will not be a fluff book. I won't include links to a website where I upsell a forms package or coaching. This will be a big, hairy user manual with everything you need to be successful, including tons of sample forms.
If someone discovers they don't like to be a Landlord, they suck at being a Landlord, or they don't have time to be a Landlord, I will include a detailed guide for finding a professional property manager to take over.
Tell all your friends! I hope to be in a bookstore near you in the first quarter of 2024!
I know there are good PM out there and also people who don't care about their own properties. I use a PM for two of my rentals and they are good most of the time; but I've also found that they treat the properties differently than if it was theirs. When they know a vacancy is coming up, a few times I've had to ask why it isn't listed on their site (after the home is vacant). They don't get paid when it is vacant, but for them that means losing $100-200 a month. For me that means losing $1000-2000 a month. The owner of the company is good, but some of the employees aren't.
- Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes3y
I would be more frustrated having to manage a terrible property manager. At least the tenant is paying me, you are paying the property manager for the headache. In all seriousness, both would suck for me. Having to manage tenants directly and having to spend a lot of time managing an incompetent property manager. I use property management and we have worked great for 6 or 7 years. I recognize my patience and temperament is not cut out for it. It costs me ~$1000 a month but its worth it at the moment.
- 3yMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes"focus on educating yourself, improving your skills, and striving to become the best investor possible".
Quote from @Jorge Vazquez:
As someone who has sold rental properties to investors for two decades, I've discovered that most people dislike rentals because they don't enjoy managing them. My advice to investors is simple: focus on educating yourself, improving your skills, and striving to become the best investor possible.
Don't waste valuable time managing your properties! Instead, focus on finding your next great deal. You're not aiming to become a property manager - you want to be an expert investor. Furthermore, by working with a property management firm, you can leverage their resources and grow your business more quickly.
But perhaps the most crucial reason to avoid managing your own properties is the potential for disaster. All it takes is one call on a weekend to ruin your day and make you regret your decision to invest in rentals. Don't let this happen to you, your spouse, or your family. Protect your future and retirement by enlisting the help of a skilled management team.
Definitely agree! Take your time in expanding your knowledge and master the power of investing. - Property Manager · Tampa · Member since 2023 · 17 posts · 17 votes3y
As a former Property Manager and the COO of an investment group that offers Property Management, I would say this...
It is unfair to say Property Managers suck, just as it is unjust for Property Managers to say landlords suck. Most investors that choose to partner with a Property Manager do so because they want to spend their time and energy on their jobs, family, and/or growing their portfolios. They do not want to deal with tenants, paperwork, drama, legal processes, repairs, inspections, comps, showings, marketing, and everything else that a good PM takes off of their plate.
Whether or not you choose to work with a PM should depend on your goals. Does it hurt your cash flow? It can. However, can you mismanage your property, price it too low, and not handle the repairs/tenant concerns correctly, leading to vacancies that hurt your cash flow even worse? Absolutely.
If you have worked with a PM that did not meet your expectations, I would advise you to either be more clear on your expectations/pain points with that PM or move on from them if you have done so already. Property Management is a service. Not everyone needs the service. And not every landlord/property is the right fit for a particular PM.
It is about doing your due diligence and determining what is more valuable to you... your time, your money, your peace of mind. When you can find the right Property Manager to help you with all 3 of those, I would say that's a win. However, comparing your potential mate to your ex and expecting them to cause the same heartache and pain isn't fair. And neither is assuming that there are not great companies out there who can provide you with the level of service you seek.
Again, to each their own. If you have the time and energy to manage your own portfolio and you are getting great results...keep doing that! Let's not trash a whole profession because of your situation. Others may find more value in having their quality of life and time and spending a fraction of their cash flow to ensure they have well-kept properties and happy tenants!
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Jay Michalec:
I'll be discussing this in my book. I know a lot of millionaires and billionaires that own real estate and they don't manage their properties. Many of them never even see a fraction of the properties they own!
The DIY Landlord Book4.7248 Reviews - Property Manager · Shelbyville, IN · Member since 2014 · 303 posts · 161 votes3y
@Nathan Gesner It's been awhile since I've jumped on here but trying to make it a habit again (the BP investor friendly lead program literally broke my business in a good way lol).
I'd love to check the book out Nathan! That's pretty cool. Someone has needed to sit down and take the time to write the nitty gritty stuff. I'm wondering how much of it is general, and how much of it might be related to region to region expectations and even city versus suburban? It still blows my mind how much people don't realize even after they claim to have "educated" themselves and read "dozens" of articles of what to expect when investing in LTR and landlording in general.
To everyone else on this little thread, even great property managers find failure where others thrive. --I.e, we focus on suburban areas. We don't even step foot into Marion County (Indianapolis).
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
with all the varying laws out there, no book on earth can address every situation. I'm being as specific as I can, talking about options, and reminding the reader to review local law to verify. I even include a guide on where to find the laws and do your own research. If you are going to be a really successful DIY Landlord, research is an important part of the process
The DIY Landlord Book4.7248 Reviews - Member since 2023 · 3 posts · 2 votes3y
@Nathan Gesner Wow! I went to high school in Cody! Small world!
Moving on... I love this post because I am a property manager who works in a company that is structured for investors and I think that's great advice if you want to get the most out of your investment! I think when searching for a property manager, you should make a list of questions and a list of needs to make sure that they can fulfill these needs and they have the answers you're looking for! Property management is not easy, but I am super confident in my team and our abilities! Find a property manager who is willing to take the headache out of owning investment properties for you!! Keep your time your time so you could focus on whatever it is you wish to focus on!
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