How to manage if have more than 5 properties?
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Investor · Vermont and New York · Member since 2023 · 308 posts · 309 votes
3y1. Set up all your payments on autopay or bill pay. (mortgage, utilities, etc)
2. set up all rent collection so it is hands-off - they either sign up for ACH auto debit or go to a bank branch and deposit into your account
3. have a checklist you follow for all move in and move out activities. like switching utilities et. The company may have a way to automatically revert to your name when a tenant cancels.
4. Hire a part time assistant to do a lot of the menial cookie-cutter things - again - you need a checklist.
5. use software to track all expenses etc. Google Stessa, buildium, etc.
6. Write down all the tasks that are part of your work flow for property. Automate and delegate as many as you can. You don't NEED a property manager - you need to be more effective at the role.
I had my hands full managing 10 units years ago - I used paper and pencil, then spreadsheets. That sucked.
Sold all but one of those in 2006.
Last year I went from managing on SFR to a total of 23 units. I realized I had to automate and use tools.
I still need to streamline - mostly with follow ups on late rent payments and sending letters. And tracking maintenance issues.
2. set up all rent collection so it is hands-off - they either sign up for ACH auto debit or go to a bank branch and deposit into your account
3. have a checklist you follow for all move in and move out activities. like switching utilities et. The company may have a way to automatically revert to your name when a tenant cancels.
4. Hire a part time assistant to do a lot of the menial cookie-cutter things - again - you need a checklist.
5. use software to track all expenses etc. Google Stessa, buildium, etc.
6. Write down all the tasks that are part of your work flow for property. Automate and delegate as many as you can. You don't NEED a property manager - you need to be more effective at the role.
I had my hands full managing 10 units years ago - I used paper and pencil, then spreadsheets. That sucked.
Sold all but one of those in 2006.
Last year I went from managing on SFR to a total of 23 units. I realized I had to automate and use tools.
I still need to streamline - mostly with follow ups on late rent payments and sending letters. And tracking maintenance issues.
47 Replies
- Investor · San Jose, CA · Member since 2015 · 54 posts · 29 votes3y
I have 11 properties and am a full time software engineer. What i do is
1.) record all expenses on a spreadsheet as soon as they occur so I don't have to worry about it
2.) autopay all bills
3.) appartments.com to track rent collection
4.) own quality SFH homes in B class neighborhoods to minimize turnover.
5.) have a couple of handymen that can fix small stuff, AC guy, Roofer, and water heater/plumber guys
I could probably scale up to 20 before I would need to hire a property manager. A lot of people say to hire a property manager when you're still small but the truth is if you look at what they are paid for the amount of work they do it would probably come out to somewhere around $200 to $300 per hour.
- Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3y
Quote from @Adah N.:
@Richard F.
You pay mortgages, follow up with ARM, renew insurance policies, organize documents to file taxes and even file property tax appeals for the homeowners?
It is up to the Owner what we pay or don't. Mortgage payments, 2nd mortgage payments, with or without coupons are very routine. We CAN track an ARM if requested, but I do not recall ever being asked. It is a simple function for accounting to set "ticklers" for due dates that require a (financial) action. Insurance payments, property tax payments, HOA fees are typical. As to renewing insurance, depending on the property, usually we just pay the renewal premium when it is a single unit with State Farm for example. However, if it is a MF property, and particularly if our client went with an independent Broker, it is typical to get an update from the Broker a few months prior to renewal with estimates of increases and/or alternative recommendations...from the Insurance person, which we then review or discuss with the client who makes the decision. Even Clients that pay their own insurance, we usually get copies of the renewal notice and touch base with the Client. Obviously we handle all repairs, using contractors currently, but I have also worked for PM companies that had in-house maintenance staff. Routine "service call" repairs are handled, invoices reviewed and approved by the account PM, and vendors paid, generally by mid month. We set up, make quarterly or semi annual payments, and a year end reconciliation form for the local GET tax for the Client. Here we have not done any Property Tax appeals, but in a prior state I have.
For large projects we can get proposals from multiple vendors, our preferred vendors or the Clients choices. In every case the Client signs the contract for the project, and deposits the entire amount into our Client Trust Account prior to any work commencing. Typically I will be taking weekly progress pics to forward to the Client. We also document "Ready to Rent" conditions; interim inspections; some types of repairs; water or fire damages; and move out damages.
To be clear, all payments are made from rental proceeds. If a large payment is due, for property taxes as example, we either have held back funds each month to prepare for that (which is reflected in every monthly financial report), or we request funds from the Client. We NEVER use Company funds to pay Client or Tenant expenses. For this reason, we have somewhat of a reserve for most properties...or an invoice will be held until next month rent is collected, depending on the job, Client and vendor.
Monthly financial reports include income and expenses for the current month and year to date. Copies of every invoice paid is included with the financials, and originals remain in our files. Depending on size of property, there may also be a delinquency report, general ledger, pre-paid rent/HOA dues, and variance report. The more accounts that a Client requests us to make payments on, the easier year tax prep is for them...everything is on the December report, all they need to do is keep their monthly reports together for the invoice copies.
Although I have fallen out of the habit in recent years, in the past, at end of year, I would also work up some stats on comparable sales and provide a brief discussion of trends for sales and rentals with estimated current ranges for each. Mainly I would do this to "plant the seed", as most people never associate a PM as also being a Realtor that lists and sells. I've picked up more than a few listings over the years by doing this...when the Client decides it is time to do so. No Pressure. - Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes3yOh, also, utility payments...we always contact electric co. to establish interim service when a tenant vacates. The bills come to us, we simply charge it to the owner, providing them a copy of the invoice. For detached homes we will usually do the same for water/sewer, but never gas if it will be a tenant responsibility. For properties where Owner pays utilities, we have them initially set them up, naming two people from our company as "authorized" so we can deal with the account as necessary; and as with ALL Owner accounts, change mailing address to "John Smith, c/o PM Co Name, Address" so everything comes to us TIMELY.
- 3yMary JayGlendale, AZ · Member since 2017 · 1k+ posts · 236 votesOP
Quote from @Richard F.:
Oh, also, utility payments...we always contact electric co. to establish interim service when a tenant vacates. The bills come to us, we simply charge it to the owner, providing them a copy of the invoice. For detached homes we will usually do the same for water/sewer, but never gas if it will be a tenant responsibility. For properties where Owner pays utilities, we have them initially set them up, naming two people from our company as "authorized" so we can deal with the account as necessary; and as with ALL Owner accounts, change mailing address to "John Smith, c/o PM Co Name, Address" so everything comes to us TIMELY.Wow! You guys do it all! Thats great!
- 3yMary JayGlendale, AZ · Member since 2017 · 1k+ posts · 236 votesOP
Quote from @John Underwood:
Quote from @Mary Jay:
Do you guys who manages more than 5-7 properties, do you also have full time jobs besides managing those properties? Or may be you have a spouse that manages them for you?
I only had 20 or so when I was working. No mortgages, I pay cash for everything. I easily tracked everything in Excel. It only took a few hours per month to manage. Problems came in via text and forwarded them to my handyman. Took seconds to handle.
Have more properties now, still use Excel. My time goes toward acquiring more properties and rehabbing them for a tenant. I check on rehabs once a week. I write checks and the rest of the week is my time to do what I want.
Were those 20 properties in one state?
Mine are in different states, that probably also complicates my situation...In some states I have great handymen and in others-I dont - 3yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
Quote from @Mary Jay:
Quote from @John Underwood:
Quote from @Mary Jay:
Do you guys who manages more than 5-7 properties, do you also have full time jobs besides managing those properties? Or may be you have a spouse that manages them for you?
I only had 20 or so when I was working. No mortgages, I pay cash for everything. I easily tracked everything in Excel. It only took a few hours per month to manage. Problems came in via text and forwarded them to my handyman. Took seconds to handle.
Have more properties now, still use Excel. My time goes toward acquiring more properties and rehabbing them for a tenant. I check on rehabs once a week. I write checks and the rest of the week is my time to do what I want.
Were those 20 properties in one state?
Mine are in different states, that probably also complicates my situation...In some states I have great handymen and in others-I dontYes mine are in one state.
With FB marketplace and multiple apps designed to find service people its relatively easy to find good people but you may have to try a few to find the great ones. Once you have those great people you can depend on it makes life much easier. I can send a text to the handyman, electrician or HVAC person and they go that care of issues and I don't worry about it.
My Handyman is local but he still sends me pictures of progress and finished work. So I rarely go check behind him. I could be half way around the world with this setup.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Mary Jay:
You just need to get organized.
Create a spreadsheet for free using Google Sheets. One tab per property. Create a list of the information you want to track for each property, then fill it in. When something changes, update it.
Need to keep track of mortgage payments or who holds the loan? Put it in the spreadsheet with the information you want to track.
Have a lot of moving parts during a turnover? Create a checklist of actions to take. Print it off every time there's a turnover and check off the steps as you complete them.
The DIY Landlord Book4.7248 Reviews - Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Adah N.:
@Richard F.
You pay mortgages, follow up with ARM, renew insurance policies, organize documents to file taxes and even file property tax appeals for the homeowners?
this is primary reason why I use escrow. It's the lender that pays all of that. Also all rental use the same bank with one login,so that part is easy.
I cant believe the stress if you purchase 20 rentals with 20 different banks without escrow. - Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes3y
Quote from @Mary Jay:
Hi guys, I have 5 properties and I am struggling to manage them. I do have a full time job and a family but besides that, its only 5 properties. By managing I mean paying utilities when the tenant moves out, getting a new tenant in, paying mortgages , keeping track of expenses for taxes and which mortgage company sold which mortgage to who and registering on the new companies website so I could pay the monthly mortgage...
I know a full time job does take a lot of my time. But I dont have many properties either.
How do people deal with 100-200 properties?
May be they have bookkeepers? Or their accountants are paying mortgages for them?
But you have to trust those people. You hear so many stories about athletes who trusted someone but those people scammed them out of their money...
I would love to expand but not sure how if I am already struggling with only 5 properties...
My advice is to hire out some of the work that you don't want to do and then manage the parts that are easy and you can do from home on your computer. I manage 10 doors myself and it is not that bad. I know this sounds like a common sense answer and it kind of is. If the properties are all in the same area, a professional company may give you a break on the % of rent they expect. Either way, you'll need to decide how important your time is and how much you're willing to spend to not use it on property management
- Rental Property Investor · Carson, CA · Member since 2019 · 185 posts · 74 votes3y
@Mary Jay hire an asset manager! Explain everything you need done and negotiate how much you are going to pay him/her. That’s a possible solution.
- 3yKerry Noble JrPro MemberInvestor · Indianapolis, IN · Member since 2018 · 2k+ posts · 1k+ votes
Im open to helping anyone solve problems and bring value on this subject
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
Quote from @Mary Jay:
Hi guys, I have 5 properties and I am struggling to manage them. I do have a full time job and a family but besides that, its only 5 properties. By managing I mean paying utilities when the tenant moves out, getting a new tenant in, paying mortgages , keeping track of expenses for taxes and which mortgage company sold which mortgage to who and registering on the new companies website so I could pay the monthly mortgage...
I know a full time job does take a lot of my time. But I dont have many properties either.
How do people deal with 100-200 properties?
May be they have bookkeepers? Or their accountants are paying mortgages for them?
But you have to trust those people. You hear so many stories about athletes who trusted someone but those people scammed them out of their money...
I would love to expand but not sure how if I am already struggling with only 5 properties...
Answer: SYSTEMS
Saves
You
Stress
Time
Energy and
Money
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
@Mary Jay So if we jump into a conversation on what the SYSTEMS are and what they look like, well, let's just say I could do an entire YT series on it and to cover all the bases it would probably be 50'ish videos.
A first tip, connect with your banks and ask about an Executive Account. First asking if they have such a thing. Actually, may be best to start at Wells Fargo so you can get the exposure to what one looks like, what it has, how it works, and the difference of such.
namely the key feature most applicable to this situation is the ability to add in additional subordinate users unto account who you can set there vision and access levels, that can create payment orders, that than go to yourself on a set schedule for review and authorizations to finalize process and disbursement. With such an account, than a person can have an assistant of whatever make/kind of does the day-2-day aspects and you time now drops down to simply reviewing and authorizing actions, vs processing and originating them. I know some who use VA's for this, others like myself who have accountants and accounting assistants for this. I have an entire accounting team, I have my reasons for such, but one could do it with just a singular VA in many cases.
This is just 1 system example.
But keep in mind, everything costs $. So there is a balance. One has to ask if it is a ROI action, or just a convenience action. For me, it's ROI, I have better uses of that time.
If your at 5 properties and happy to stay at 5 properties, it's about an internalized systemization, or better known as organization system. If your looking for how to get to 50, than 500, then it's about SYSTEMS approach. Creating systems, to leverage human power to remove yourself as maximally from those items that are a drag on your time from your primary, highest ROI actions of your time.
- 3yBrad HuntonPro MemberRental Property Investor · Granbury, TX · Member since 2020 · 84 posts · 70 votesI self manage 14 of my 16 properties currently. That includes 13 long term and 1 short term. I use RentRedi for all the rent payments, etc. For the rest I just set reminders on my phone. I shop the insurance every time it comes due and dispute tax increases whenever I can. I work a full time job and my wife is completely hands off. It is doable it just takes organizational skills.
Quote from @Mary Jay:
Do you guys who manages more than 5-7 properties, do you also have full time jobs besides managing those properties? Or may be you have a spouse that manages them for you?
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
The right property manager can be invaluable for any landlord with a real estate portfolio. If you are managing 10 properties, it's worth considering hiring a property manager to help streamline the process - if they can make 10 properties efficient, imagine what they could do with 100! By having an experienced professional on board and setting up an efficient system, you can free up your time and resources for other tasks that need attention. It doesn't get any better than that. So if you're looking for help managing your real estate investments, don't hesitate to hire the best property management company in town. You won't regret it!
- New to Real Estate · San Antonio, TX · Member since 2021 · 110 posts · 58 votes3y
Managing multiple properties can be a challenging task, especially if you have a full-time job and a family to take care of. Here are a few suggestions that might help you:
1. Hire a property manager: A property manager can take care of all the tasks associated with managing your properties, including tenant screening, rent collection, property maintenance, and bookkeeping. A property manager can also handle emergencies and ensure that your properties are in compliance with all local laws and regulations.
2. Use property management software: Property management software can help you automate many of the tasks associated with managing your properties, including rent collection, expense tracking, and tenant communication. This can save you time and help you stay organized.
3. Outsource specific tasks: If you don't want to hire a property manager, you can outsource specific tasks, such as accounting or maintenance, to third-party service providers. This can reduce your workload and help you focus on other aspects of your business.
4. Set up systems and processes: Setting up systems and processes can help you manage your properties more efficiently. For example, you can create a system for screening tenants or a process for handling maintenance requests. This can help you stay organized and avoid missing important tasks.
Expanding your portfolio can be a great way to grow your wealth, but it's important to make sure that you're able to manage your properties effectively. By implementing some of these strategies, you can simplify your workload and focus on growing your business.
- 3yJohn MorganPro MemberRental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
I self manage 18 SFR and work full time. It's pretty easy for me and doesn't take much time. I have a folder for each property and write the expense down within a few days to stay on top of it. I hire out most of my work because I'm lazy and would rather spend my time doing something else. It's not that bad if you stay on top of it.
- Investor · Lancaster, PA · Member since 2016 · 94 posts · 356 votes3y
@Mary Jay my wife and I had 61 or 62 units and we both worked full time. They are in multi family properties so it wasn’t 61 separate homes. We handled ALL maintenance, turnovers , accounting and even mowing. We were on a mission, incredibly focused and motivated. I quit my w2 at 61-62 units. My wife just put her 4 weeks notice in and we now have 135 units. We do have a handy man we use regularly, we don’t touch landscaping but we still do 100% of the management, most of the turnovers and remodels. It only takes us about 5 hours a week for accounting and accounts payable and receivable. As others said. You just have to get more organized.
- Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Mary Jay:
Quote from @Richard F.:
Oh, also, utility payments...we always contact electric co. to establish interim service when a tenant vacates. The bills come to us, we simply charge it to the owner, providing them a copy of the invoice. For detached homes we will usually do the same for water/sewer, but never gas if it will be a tenant responsibility. For properties where Owner pays utilities, we have them initially set them up, naming two people from our company as "authorized" so we can deal with the account as necessary; and as with ALL Owner accounts, change mailing address to "John Smith, c/o PM Co Name, Address" so everything comes to us TIMELY.Wow! You guys do it all! Thats great!
He is Property Management Manager ! for PMC owners, being organized and having SOP is the key for success and efficiency.
IT is very cool to understand how the PMC works as well since he described it pretty well.
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