When Is It Time To Hire A Property Manager Anyways?

Something we got asked a lot, is it one house, five houses, twenty houses and I don’t think there is really a set answer for that. I think it depends on what a person’s business model is and how they plan to grow the rental property portfolio. You know if they are trying to do everything themselves, they are kind of like my business partner and I when we first started, you can do that, you could make a lot of mistakes like we did, you could learn from those mistakes. Hopefully none of them are fatal and none of them will put you out of business. But you definitely will learn some serious lessons and you can go that route or you can do what we did later in our investing career. You can leverage your team.

One thing we found that is very interesting is that a lot of people, when they want to buy a property, they use a professional real estate agent, and when they want to buy the property, they get a mortgage lender to lend them the money, they close with a professional title company. After this is when they actually want to get the return out of this property, the most important thing in managing that asset, that’s the part they’ve decided that they are going to do on their own.

So to me it doesn’t make sense that that’s the most important part. And just because you’re financially capable to buy a house doesn’t mean you’re financially educated to run that business. So if you are going to run them on your own, which you can, I would say that you educate yourself, you learn all the laws. Landlords are the highest sued in Real Estate, mostly because they don’t understand all the laws and regulations that go into owning the property. And they don’t follow those rules. They don’t have policies and procedures in place.

So make sure that you are following those procedures or team and partner with a company that does. There’s a lot of companies out there that have policies and procedures and make sure that your property is running like a business and not just something off of gut feelings.