If you ask people why they invest in real estate, one of the top answers you’ll get is freedom. Contrary to this driving force of wanting more freedom, many investors self-manage and end up instead limiting their own freedom.
In my article Building Your Real Estate Investment Team – Part 7: Selecting a Property Manager, I discussed some of the items a property manager would normally be responsible for:
- Showing the property
- Interviewing tenants
- Tenant screening (including credit and background checks)
- Filling out leases
- Collecting rent
- Handling evictions and other tenant issues
- Managing trades for repairs and maintenance
- Coordinating lawn care and snow removal
- Regular property visits
As a landlord, how many of these items take away your free time and limit your freedom? If you self-manage, the answer is probably most or all of these.
The Cost of Freedom
If like many other investors, you invest because you want to have more freedom, ask yourself what not having to deal with any of the hassles above is worth to you.
Without having to worry about any of these, would you sleep better at night? Would you be more relaxed on weekends or vacations. Would you simply have less stress?
Leave It To Your Property Manager
Once you put a price on your freedom you can compare that to what a good property manager would cost. Usually hiring a PM is the right move if you are one of the many investors who are looking for more freedom.
Remember that you make your money putting deals together, not as a property manager. Select a great property manager, supply them the tools to do a great job, and leave them to do what they do best while you enjoy some newly purchased freedom.