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Property Management Efficiencies

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Transcript

I’ve noticed many investors stop at a certain number of properties not because of their capability or not because of their borrowing capacity and actually not even because of their savings potential or goals. They come down to just the efficiency of managing a portfolio – feel it’s too hard, too stressful and not worth their time and energy.

So let’s go through why Property management is a big part of it. Sometimes people think “well, maybe I could do it myself” and at sometimes it can work and to give you an example commercial properties can be great example of properties that can work themselves through self-management.

Now other parts of the reasons are that when people look at the efficiencies, they’re paying a property manager, but they’re not even getting their bill sent to them. They’re paying a property manager, but they’re not even setting appropriate repairs buffers today. They’re paying a property manager and they’re not taking accountability to do some self checking on some of the comparable rents and have that joint conversation with a trusted professional.

So sometimes when you feel like, you aren’t as organized it can actually go on to how you think of investing is a whole. As a whole you start going ”Well, I don’t want to build a big portfolio, two is just enough, three’s just enough” and you had such different thoughts at the start going ”I want to build a big portfolio so I can achieve these goals”.

I see it very commonly, people get to a certain level of their portfolio and they get stuck. It actually has nothing to do with the capability it has to do with the comfort levels. So when you are thinking of managing your property, you know setting clear reminders for your lending, when to review it when to actually understand certain fixed rates that are coming off, setting reminders for your property itself on rates that are coming up, how early before the lease when to compare it, what to compare it to and just doing this little things we discussed earlier that will help you a long way.

Now the next thing as well is to consider your banking, some people go way over the top and over complicate it with accounts for most everything. I’m sure you might have read it in some book somewhere to create these little rainy day funds and all these little things while savings is important and having saving structure’s important don’t overdo it because to show off to your friend that this is cool and how you’ve got this account won’t really make you feel any more comfortable with building a property portfolio with so many more things to think about.

So streamlining, building efficiencies and really putting together, different professionals to carry some of the weight will get you to a level of efficiency that you feel managing a property will take you to building your portfolio. It’s a mindset barrier most of the times but if you can overcome it, you can go to 10 20 50 and even hundred properties and you’ll start to realize that it’s actually not any more difficult than the first one.

That’s it from us here at InvestorKit, the experts in Wealth Creation helping you take action.