On this episode of The Most Dwanderful Real Estate Podcast Ever, Dwan discusses when and how to hire a property manager. Being a landlord to a few tenants that you have interviewed and chosen ahead of time can be great. But when you own multiple properties, tenant requests and problems can be exhausting. Dwan recommends that you manage your own properties when you just have one or two because it is important for you to know how to do all of the things that a property manager does down the road when you are ready to interview and hire one. She also says that you should tell tenants that you “work for the owners” so they don’t find out you are the owner and start asking for more leniency than you want to give.
Once you get five properties, you should definitely consider hiring a property management company to help you with collecting rent, handling maintenance requests, and dealing with any other issues, but have a threshold of maintenance issues that must be brought to you for approval first. For example, some property managers get kickbacks from their friends who are in the HVAC or roofing businesses if they install one of their products at a property. Perhaps things over $500 should be brought to you for you to handle the bidding process. Also be sure you are very well-insured at all of your properties.
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Time Stamped Show Notes
- 2:00 – Dwan encourages everyone to drink a lot of water.
- 2:47 – Dwan just took Bill on a surprise trip down Route 66 – they will be gone for about a month. It is their first real vacation by themselves in 10 years.
- 12:55 – Dwan is about 50/50 when it comes to property managers. They wouldn’t be able to own as many buildings in Iowa if they didn’t have a property manager and maintenance crew.
- 16:41 – For your first two properties, Dwan thinks you should take care of the property management responsibilities yourself. You can’t train and employ people to be your property managers if you have never done the job yourself to know what you want. REIA groups are a great resource for finding property management companies.
- 21:27 – If you pay off your rentals, you don’t have to worry so much about your margins, but you should aim to profit about $500 per month on each property, which will cover the property management expenses, taxes, and insurance.
- 24:34 – Getting yourself set up for success.
- 30:44 – Definitely after you have 5 properties, you should look into getting property management help.
- 34:10 – Your assignment is to subscribe to the podcast and send the link directly to 10 people to ask them to subscribe too.
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