A good property manager will save you time and money while ensuring your rental investment is being optimised to its full potential.
In fact, it could be the best six per cent you spend when it comes to managing your assets and growing your portfolio.
But if this is true, then why are so many landlords still hesitant to hand over the keys?
Real estate is a precious and valuable investment that needs to be handled with expertise to avoid costly mistakes and headaches.
All too often landlords learn this the hard way because they micro-manage their properties.
This often results in lost opportunities, a lack of free time and becoming emotionally and financially drained.
So, if you’re still on the fence consider these four factors to see if property management is the next step in your wealth creation journey.
1: You’re NOT Location Limited
It’s no secret that the golden rule in real estate is location, right? But what many people don’t realise is that often-times the right location is not where you live.
Most people who opt to manage their own property need to be in close proximity to it, but this is not always a smart option leading to the best long-term results.
More often than not, successful property investors don’t buy close to where they live, and because of this they’re able to capitalise on high-growth areas which result in larger rents and better long-term performance.
However, this can only be made possible when using a professional property manager who is central to the location of the rental.
Don’t limit your property growth because of location. Use a property manager to help manage your wealth creation portfolio so you can concentrate on acquiring more properties in order to keep growing.
2: You’re NOT Time Compromised
How would you like to spend your weekends – at the beach with your family? Or with your head down someone else’s toilet? I know what I’d rather do!
Ask yourself what your time is really worth and then start valuing it. Many people purchase rental property thinking it will lead to more freedom only to be hindered by repairs, maintenance and phone calls all hours of the day and night. And then of course you have your day job on top of that! With time an invaluable commodity, be strict on where you spend it.
When you really crunch the numbers a six per cent property management fee is a small price to pay to know that your rental is in good hands and all of the crappy, yet essential jobs are taken care of.
3: You CAN Maximise your ROI
Most of our clients have day jobs or businesses – and undoubtedly, they are VERY good at what they do. In fact, the reason why many are in a position to buy real estate is because of the success they have had in their careers.
Now, if this is you, would your time not be better spent in a field where you are appropriately rewarded? Is that not a better return on investment? A job that may take a property manager 30 minutes could take you half a day or longer.
Think strategically about where you get the best results and then dedicate your time to those activities. Afterall, it’s those activities that will ensure you stay on track to achieving more of what you’ve got.
Just because you can’t drive past your property, does not mean it’s not ticking along behind the scenes and significantly contributing to your overall wealth portfolio.
4: You’re NOT Emotionally & Financially DRAINED
Whether you want to admit it or not, when you’re the main contact for your rental property, the emotional lines can easily blur. When you’re emotionally attached to your property or tenants, you are more at risk of making decisions that will not directly benefit your portfolio in the long-run.
For instance, I have seen landlords be far too kind to their tenants and treat them like friends, which never works. Rent increases don’t happen when they should, and overall success is stalled. I remember one lady I met a while back was undercharging by $15,000 a year – I did not realise that she was running a charity, and neither did she. Her liking for her tenant ultimately put her retirement back by several years. Healthy relationships should help you move forward, not hold you back, and a good property manager is there to ensure everyone wins.
Other issues can be personality clashes and drama which not only drains your energy but also your bank account.
Picking the right Manager
Picking a property manager that is aligned with your vision and goals is crucial.
The right property manager should have experience and be able to demonstrate their results. They will live and breathe property and will have an investment portfolio themselves.
You wouldn’t want an inexperienced lawyer taking care of your legal matters and same goes for the person taking care of your most valuable asset.
Come along to one of our Property Investor Nights
To learn more about how to find the right property manager and who else you need on your property panel to maintain and sustain long-term wealth creation, book your spot at our free property investing seminar here.
At this seminar, you’ll be equipped with the tools, resources and support to thrive, and most importantly, not make the fatal mistakes or stumble into the common pitfalls that are so easy to come across without the right information.
Spaces are limited so book your seat for our free property investing seminar now.
Use the form below to book your spot!
Director – Positive Real Estate NZ
Reserve your free seat!