When you think about your real estate investment career, what’s the one thing you think you couldn’t live without? Think hard.
Is it your capital? Your connections? Your credit score? Real estate investment comes in so many different flavors that’s it’s hard to say what the number one most important part of it is. What someone could manage without you might not be able to. But for turnkey real estate investors who rely on a more hands-off real estate investment model, what you couldn’t survive without is pretty clear cut.
It’s a reliable property management team, plain as day.
Even real estate investors who aren’t turnkey – they just aren’t landlords – would probably contest that they couldn’t do it without the help of their property managers. After all, someone has to be there, hands-on, taking care of all of the day-to-day, nitty-gritty details.
Here are four crucial ways property managers count:
1. They’re The Public Face of Your Business
In real estate investment, the owner isn’t usually the one who is seen, spoken to, or dealt with by tenants, contractors, or...much of anyone. You’re really only there and in the weeds when it comes to making deals! You tend to be the wizard behind the curtain, masterminding everything. Your property managers are the ones dealing with your customers, the tenants, and working in the public-facing part of the business. They build your reputation far more than you do!
That’s why it’s so important that you, as the owner, are putting a lot of stock in finding a good property management team to entrust with your properties.
A bad management team can absolutely sink your investments—not just by neglecting to properly care for your properties, but by driving away tenants or just generally not being good at their jobs. A lazy, rude, or incompetent manager is not going to serve your business well, even if they save you money!
2. They Put Out Figurative (and Literal) Fires
Your property management is your first line of defense in emergencies. Whether it’s an angry tenant, a conflict, or repair to be made, or an actual something-is-on-fire-call-911 emergency, you are trusting your manager to know how to keep a cool head and take the right course of action that protects your assets and resolves the issue quickly, smoothly, and for the best outcome.
That’s a lot of responsibility! The question is, are you giving your managers enough credit? Do you pick a company or manager based on what they charge (looking to save and cut corners) or do you decide knowing that they’re going to best serve your investments and interests?
3. They’re Your Most Knowledgeable Support
Who knows your real estate investments, your rental properties, and your tenants better than the people who work with them day in and day out? Your property managers are they not just to keep a handle on everything, but they provide you with crucial information about how your properties are running—if the lease structure is working properly, if things are going according to plan...information on expenses, damages, warning signs, profits...everything!
Managers are not just full of this knowledge, but they’re there to support you and be a partner in your success.
4. They Let You Be As Hands-Off As You Want to Be
Without a solid property management team, it would be impossible for real estate investors to do all that they wanted to do. Could you imagine having to manage properties all yourself? It could turn into such a nightmare! Not only are you able to be hands-off with the help of management, but they allow you to scale and expand in ways that you wouldn’t be able to otherwise.
As real estate investors, we too often think about our profits in cut-and-dried terms. We look at property management companies and have sticker shock and decide to go with less expensive alternatives...and end up really paying for it!
Instead of buying a partner, a reliable reputation, and an investing in a valuable asset, we’re more concerned about saving a few bucks. The difference between a good manager and a bad manager is something you will absolutely feel every time. It can make or break your business!
This is where going for the premium is worth it—invest in quality. Customer service, excellent management, and good people.