Choosing a Property Manager

How do you know if you should have a property manager? And then, if you decide you do need one, how do you pick the right one? This blog should help you find the answer to both of those questions, and help you make the best decision for your business.

Is a Property Manager Necessary?

There are a few questions you can yourself to figure out the answer to this.

First, is this your full time job, or is it something you’re doing on the side? If it’s something you do on the side, a property manager will keep you from being too overwhelmed.

Second, a property manager will help you grow your equity. They will minimize your immediate cash flow, but not having to deal with the aggravating details of upkeep on properties may make it worth it.

Third, if you are investing in properties outside of your area, a property manager will be the person in control of the property who is not as far away.

Lastly, if your apartment is around a dozen units, it’s the perfect size for an off-site property manager to take care of.

How do You Choose a Property Manager?

There are a few things you should consider before hiring a property manager.

First, interview a good amount of options. It’s good to meet them in person, because then you can get a sense about what type of person they are. Don’t let yourself get carried away by their personality, though. You should have an objective standard that you are measuring them against, so that you choose the right fit.

Second, see how they run their business. Are you comfortable with the way they keep track of things? They should have good records for every business decision they have made.  How do they choose tenants? They should be careful with who they choose, but also not be too choosy. They should be responsive to tenant requests for property maintenance.

Lastly, check their references. Feel free to find people who stopped working with them, and ask them why they stopped using their service. Google them. Once you’ve narrowed down your options, run a criminal check on them. Make sure you are choosing the best property managers for your business.

Partnering with Your Property Manager

The closer of a relationship you have with your property manager the better. If you have a solid relationship, they will be happy to let you know of any deals that come up in the area. They will hear more about the businesses around them, and can give you a heads up potentially before other clients.

Property managers take care of your properties so that they are less stress on your plate. These are a few things to consider as you see not only if a property manager would be a good fit, but who specifically would be a good fit for you.

To read more about this, check out this article that inspired this blog: https://www.biggerpockets.com/blog/choosing-property-manager-multifamily

Off-Market Properties are the New Market

Off-market properties are hard to find. You don’t have the ease of access of it popping up on the internet. But, they can be very profitable for you to invest in. Think of them like the hidden gems of real estate. There are three main reasons why these off-market residences are so great for investors.

Negotiation

First, you don’t have to jump through as many hoops to negotiate on the property. In fact, you work with less people than a traditional piece of real estate. This means that you are better able to obtain a price that works for you and the seller, because you don’t have the same amount of middle men involved in the process.

Competition

If the property isn’t on the market, then other buyers aren’t looking at it as closely. Sometimes, for marketed real estate, you will have to outbid other interested investors. This isn’t as much of an issue with an off-market property, because not as many people will know about it.

Lower Price

If this property isn’t getting as many bids, you can open a negotiation that satisfies you and the seller. The market sometimes drives the prices of houses up, but an off-market find can enable you to get the best deal possible.

It can be helpful to your business to pursue leads that are off-market. These leads can hopefully grow into some of your most lucrative investments!

 

Strategizing Success

You can get caught up in so many things¬† when starting a new business! You can micromanage all the details and lose sight of the big picture, or you can focus so much on your goals that you forget to put in the supporting work to get there. It’s easy to be overwhelmed. If you keep some simple principles in the front of your mind, you’ll have nothing to worry about. Here are three tips to get you started.

Keep Your Goals

Your goals are super important. If you forget what you want to achieve, it will be hard to get there. Therefore, in order to make sure you achieve what you want, always remember your final plan. Make big dreams and keep them! You can figure out where you want to end up, and then figure out how to work backwards from there. You can only get there if you know where you’re going!

Know the Costs

You need to keep all angles of the money in mind, from costs to profits. If you don’t know what you’re spending money on, or what’s bringing in the profits, your business won’t reach its full potential. It’s also okay to hire someone to keep track of everything if you have too much on your plate. Just make sure you know what’s happening at your business all the time!

Keep Growing

Your business needs to keep growing continuously. Because of this, you need to set yourself up for growth. One of the best ways to advance your business is to use marketing. Marketing will help you reach more people, and will hopefully make you more money in the process. However, try to figure out the sweet spot of spending and making money. At some point, you won’t gain anything, even if you’re spending a lot of money. Once you find the sweet spot, you can make your business move past it, and then invest even more in marketing.

Starting a new business is overwhelming, but keeping these three things in mind will help you achieve all your goals!