One of the many advantages of investing in multifamily properties over single-family properties is that you can be more hands-off in your investment. Instead of being at the beck and call of a tenant of a single-family property, you can sit back and let someone else take care of the little crises in multifamily.
Many people who consider investing in multifamily properties worry about property management. They fear that they’ll be tied down to the property, always on call to fix toilets or drains. They worry that they’ll never be able to go on vacation or focus on other things besides the property. But property management doesn’t have to consume your time and energy. You can hire professionals to manage your property for you, even for a smaller property like a four-plex.
For smaller properties, you’ll want to find a property manager; for larger properties, like large apartment complexes, you’ll need an onsite manager, someone who is available to the tenants on a daily basis. Property management should be seen as simply a business expense, and will be if you have the mindset that the property works for you; you don’t work for the property.
A successful entrepreneur needs to have systems in place to take care of the business and make it run smoothly. Property management is one of the systems a multifamily investor needs. When you’re just starting out, you may want to take care of property management yourself, and this has its benefits as well. For example, you will understand the ins and outs of property management having done it yourself, and when you later hire someone to do this work for you, you will be perfectly able to train, inform, and give specific instructions to the person who takes over this part of your business. Outsourcing property management gives you time to do other things, whether you want to grow the business, further educate yourself, or go on vacation.
5 Responses to Outsourcing Property Management for Multifamily Properties
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SECURE AND CONFIDENTIAL
This thing call Time is finite but most of us treat it as though its infinite. We are “do-it-our-selfers” because that is what we have been conditioned to do.
To the degree you are managing you can’t be buying. Both are mutually exclusive to each other.
It always perplexes me when I go into a place of business and the owner/operator is taking my order.
Stick and move. Stick is closing on the multi-unit and move is moving on to the next big and better deal.
Don’t get caught in managing your apartments or you will learn to hate this business. Spread the wealth and don’t try to cheat a good property manager.
Hi Lance, I appreciate the continual updates. Can you refresh us with the 15 questions for screening a property manager/company? Keep up the good work,
Rich in Philly
Thanks Lance,
Ok, I understand the need and am willing to do that, but where can you find good managers online? Thanks again.
Andrew (Washington State)
As a Canadian investor, presently in walk-ups, I find this series very informative and educational. I look forward to each new issues.
Concerning property management, I would like you to expand in the various type of property styles. Please explain in a forthcoming lesson how to look for specialized property management specialists, whether we deal with townhouses, blue-collar apasrtment units, luxury apartments, low-income tenants (not welfare class 8`s but those who need municipal government subsidies and the like. I would like to know how to look for each individual type of property managers in detail as itemized above. Thank you.
Louis Des Rosiers, Canada.
Hey Lance,
I’m a newbie at this…just found you not too long ago. This is just a quick note to say thanks for all the info you provide. It’s really appreciated. I will be buying your home study package on payday (tomorrow). Again, thank you!
Robert