Have you ever wondered what your passive income portfolio would look like under the right property management company? Are you aware of how beneficial a truly great property management company can be to a passive income investor?
Those familiar with the concept of a property manager are probably already well aware of the help they provide, but I digress. I am more interested in shining a light on the property management strategy for those that are less familiar with the idea, or even those that have never even heard of it. If for nothing else, a good property manager is a game changer, especially for anyone looking to increase their cash flow.
Investors keen on the idea of building wealth have come to depend on the concept of passive income; the idea of generating cash flow that requires little to no effort to maintain it. And for what it’s worth, there is no greater vehicle for passive income wealth building than acquiring cash flowing rental properties. Buy and hold real estate has become synonymous with today’s most prolific passive income investors, and there is no reason to believe you can’t join their ranks. In fact, there is one strategy that, if implemented, could bring you one step closer to making your dreams of owning a cash flowing rental portfolio a reality: aligning yourself with the right property management company.
Not surprisingly, scaling your own rental property portfolio could pay huge dividends for those that mind due diligence, which begs the question: In what way can investors improve their chances of owning and operating a successful rental portfolio?
As far as I am concerned, there is only one answer: a good property management company. Note that I didn’t say just any property management company; it has to be a good one. All things considered, a well-vetted, properly equipped third-part property manager can simultaneously reduce the stress associated with the average rental portfolio, minimize risk exposure, and increase profit margins.
There is no doubt about it: an organized property management company is fully capable of taking your passive income real estate business to the next level. But how do you know when you are ready to enlist the services of a property management company?
Again, a good property management company can help passive income investors scale their business almost exponentially. However, it’s worth noting that you don’t need an extensive portfolio to require the services of a property manager. That’s the beauty of working with a third-party management company: they can help those with 100 properties or just one. The value of a good manager increases with every property, but there is no reason an investor with a single property can’t take advantage of their services. In fact, there is no better way to get started.
You would be hard pressed to find a greater proponent of property managers than myself, and for good reason: the benefits of working with a good property manager greatly outweigh the cost of admission. Consider it an investment within an investment; there is no reason to believe aligning yourself with a property manager won’t increase your profit potential. At the very least, it will award you the opportunity to scale your rental business beyond a single property. What better way to kickstart your own passive income real estate business?
While a property management company can certainly bring a lot to the table, nothing is more valuable than the time they award savvy investors. In managing your portfolio of rental properties, property management companies take care of nearly everything: finding tenants, collecting rent, maintaining the status quo, avoiding vacancies and a lot more. However, none of that stacks up to the one intangible benefit everyone can use more of: time. In taking care of just about everything, a good property management company can free up your time to pursue more important things, like acquiring more cash flowing properties.
Consider the alternative: those that neglect to hire a property management company are inherently landlords. In the event something comes up regarding a subject property, they will have to deal with it themselves. That means every broken toilet, blown fuse or anything else that needs fixing is reliant on the person that owns the property. Literally nothing will get fixed unless they dedicated heir own time to either fixing the problem or calling someone who is up to the task. All things considered, landlords’ time is dictated by tenants, and not really their own. There is no reason to believe one rental property wouldn’t consume a great deal of their time — effectively taking them away from doing more importing things.
Those that choose to hire a property management company, however, are awarded the freedom of time; our most precious asset. Of course, they will have to pay a fee, but it’s a small price to pay when you consider how much more potential it can grant your portfolio. With more time to do the things that really matter, it’s entirely possible to add more properties to your portfolio.
When all is said and done, a good property management company breaks down the barriers that would prevent you from scaling your business. What is nearly impossible to fathom for one person is made possible by the right property manager. That said, there is never a wrong time to consider third-party management for your rental properties. Whether you have one property or 100, it’s in your best interest to at least consider the possibilities.