Setting up Systems for Your Business

[Daniel Hansen]

Setting up systems for your business is a frequent piece of advice given to new investors (Of which I am one). So that being said, could I get a little bit better clarification on what these systems are and how do they help your business?  Or better yet, what system has impacted YOUR business the most? Thanks! 

[Mike Makkar]

@Daniel Hansen, Here's some that a small-time rental portfolio manager has in mind for systems.

Rent Collection: Automate through ACH or Direct Deposit, as opposed to drive to the homes and collect rent checks

Maintenance: Have a handyman "guy" or a crew that you can text and schedule, as opposed to run around to fix toilets

Neighborhood Watch: Make friends with the neighbors and have them alert you when there's undesirable events etc. going around the property

Property Management: If you choose this, have several property managers that you constantly keeping tabs on to help with management. Sometimes, you may want to self-manage vs. outsource. Have a good list to work with, especially if you don't have the time or are remote.

Showings: Schedule your rental showing as a group. And have a lockbox, for any additional folks (inspection, handyman etc) who may want to enter the premises.

Bookkeeping: Do your books end of every month, so its not a rush during taxtime

Property leads: Network with Wholesales and agents so that you have a pipeline of properties coming to your desk

Money Source: Have your books and lending sources (banks, private) in order so that when property leads come through, you are well capitalized

Having good systems in place will allow you to be operationally efficient and pretty soon, you'll be able to outsource each of these tasks to employees or contractors and free more time to focus on growth or what you love best. At the end of the day, start thinking of this like a business and each of these tasks handled by various personnel. The systems should allow you to take care of 1 property individually or a portfolio of 500+.